Saving up for your first car can feel like a long process. With Hyundai financing, you can get the car you need now and pay for it over time. Heritage Hyundai Towson shares what first-time car buyers should know about Hyundai financing.
Getting Pre-Approved Helps
It’s not uncommon to have lots of questions about your first car purchase. By getting pre-approved, you can shop with confidence. We offer a quick pre-approval application on our site. After answering questions about your employment, income, and housing, you can get an idea of how much you can afford, complete with payment and rate estimates, helping you shop smarter.
Utilize the 20/4/10 Rule
There are lenders that will be hesitant about lending to a first-time buyer, particularly one without established credit. You can increase your odds of approval, and even secure a lower interest rate, by utilizing the 20/4/10 Rule. The guideline suggests that you set your loan parameters as follows:
- 20 – try to make a down payment of at least 20 percent
- 4 – limit your loan term to four years
- 10 – keep your auto payment and expenses under 10 percent of your monthly income; don’t forget to account for fuel, insurance, and maintenance
Sticker Price isn’t the Final Price
As you look at your budget, keep in mind that the sticker price of a vehicle isn’t the final price. Vehicle purchases also include taxes and fees. Plus, you’ll have to pay to register your vehicle. You may also want to consider optional add-ons, such as prepaid maintenance plans or GAP insurance, which protects you if you face a total loss and owe more for your vehicle than it’s worth.
Apply for Hyundai Financing in Towson, MD
The Hyundai financing process doesn’t have to be complicated. Our financial experts are here to help you every step of the way. Visit Heritage Hyundai Towson to get started today!
