Understanding the 20/4/10 Rule for Maserati Financing

If you’ve been considering Maserati financing for your new vehicle, you may have heard the 20/4/10 rule pop up. This is a guideline designed to help buyers make smart purchases. We’re taking an inside look at Maserati of Omaha.

How Does Financing Work?

Buyers that want to purchase a new vehicle, but don’t want to pay upfront for it, can consider Mazda financing. When financing, you secure an auto loan from a lending institution to pay for your vehicle.

Then, you must pay the loan back, over a predetermined term, in equal monthly installments. You’ll have a lien on your vehicle until it’s paid in full, and then you’ll officially be its owner.

What is the 20/4/10 Rule?

The 20/4/10 rule illustrates the parameters you want to keep in mind when shopping for a new vehicle. By following these guidelines, you can have added confidence you’re making a smart purchase.

• 20 – you should aim to make a down payment of at least 20 percent
• 4 – try to keep your loan term under four years
• 10 – make sure your auto expenses don’t exceed 10 percent of your monthly income

How Do I Calculate My Auto Expenses?

As we mentioned, you want to aim to keep your auto expenses under 10 percent of your monthly income. To start, you want to get an estimate of your monthly payment. With an auto payment calculator, you can quickly get an estimate online.

You just need to enter a few quick stats – your vehicle price, your down payment, your trade-in value, and your interest rate. Don’t forget to factor in your additional expenses including insurance, maintenance, and fuel costs too.

Still have questions? Contact our Maserati dealership in Omaha, NE – we’re happy to help!