Our Mazda financial team can help you with any questions regarding auto financing. One frequent question is how to properly budget for a new vehicle; it’s a fair question to ask, as knowing your maximum spending amount is necessary. As part of our Mazda financial tips series, learn how to budget for a new car at Blaise Alexander Mazda State College.
Understand Your Monthly Limits
First, you want to know how much you can spend each month on your vehicle. Budgeting this out is your first step toward Mazda financing. This doesn’t just account for lease or financing payments. You’ll also want to consider average vehicle operating costs, like gas and oil prices.
Down Payment
When you finance a vehicle, you’ll want to put a payment down during the initial investment. This will reduce your monthly payments significantly.
Ideally, you’ll have some money saved up for a new vehicle already. Determine how much you can realistically save to put down on the car before you pursue financing. You should make as large a down payment as you can comfortably afford.
Term Lengths
While shorter lease terms may leave you with larger monthly payments, you won’t pay as much in interest over time. By contrast, a longer lease will reduce your monthly burden, even if interest payments are higher.
If you can afford higher monthly payments, seeking a short-term loan might be more beneficial. However, most borrowers will likely be comfortable with a 36, 48, or 60-month lease term. Our team can work with you to determine a realistic timeline.
Get MAZDA Financial Advice in State College, PA
Visit our Mazda dealership to learn more about budgeting and planning for auto financing. Contact the Blaise Alexander Mazda State College financial team to schedule an appointment today!
