If you want to buy a new or pre-owned Mazda vehicle for the first time, you probably have a lot of questions on how car financing works. Fortunately, our Mazda finance center makes the process easy! Here’s everything new car shoppers should know about financing at Basney Mazda.
What is Financing?
Financing allows you to purchase a Mazda vehicle without having to pay all at once. With financing, you will get a loan to cover the cost of the vehicle, so that you can pay it off over time. For a set term, which typically lasts 36-72 months, you’ll have monthly payments that include interest. Once you’ve paid off the loan, the vehicle is yours to keep!
Credit Score
Credit is an important consideration for financing. A higher credit score will keep your interest rate lower, which will minimize your interest costs over time. If you have a low credit score, you can always raise it before financing by making your payments on time, requesting a credit increase, and lowering your credit utilization ratio.
Budgeting for a Car
Generally speaking, it is recommended to make a down payment of 10% of the purchase price for a pre-owned vehicle and 20% for a new one. After the initial down payment for your purchase or lease, it’s best practice to keep your monthly transportation expenses at less than 10% of your monthly income. This includes your monthly payments, insurance, fuel, and maintenance.
Meet Our MAZDA Finance Team in South Bend, IN
Have more questions about buying or leasing a vehicle? Our Mazda finance center is here to help! Stop by Basney Mazda today to learn more.
