The Ins and Outs of the 20/4/10 Rule for Porsche Financing
When reviewing your Porsche financing options, you’ll probably see lots of tips. With so many resources and guides, it can be difficult to determine the best route for you. The financial experts at Porsche Omaha can help you decide which Porsche model you can afford.
What is the 20/4/10 Rule?
The 20/4/10 rule is designed to help buyers set parameters when financing a new vehicle. These guidelines can help you determine if the vehicle you are eyeing is a smart financial decision or if you may want to reconsider your options.
- 20 – can you make a 20-percent down payment on your vehicle?
- 4 – can you set a term of four years (or less)?
- 10 – will your auto payment (and expenses) be under 10 percent of your monthly income?
What Will My Car Payment Be?
Not sure what your auto payment and expenses will be? We encourage you to utilize an auto payment calculator to get an estimate of your monthly payment. You need to start by looking at the price of the vehicle you’re eyeing.
You’ll plug it into the calculator and add the down payment and term you are aiming for. Finally, you’ll need to estimate your interest rate and taxes. Then, you’ll get an estimate of your monthly payment.
What if I Can’t Meet These Goals?
Is your monthly payment or down payment too high? Is a four-year term too short for you? Keep in mind that you can play with the data to get the car you want, even if it isn’t the ideal situation financially.
Lots of buyers prefer to stretch out their loans with smaller payments instead. Some buyers prefer to save their savings and make a smaller down payment. This rule is simply a guide.
Still have questions? Contact our Porsche Omaha dealership – we’re happy to help!