When it comes to Mazda financial services, Freysinger Mazda is here to steer you right. We offer many financing tools, like an easy online finance application and payment calculator, and we’re sharing basic financing guidelines to help you get started. Learn about the 20/4/10 rule at our dealership today.

20/4/10 Financing Explained

The more you know about the Mazda financing process, the easier it will be to take home a car you love at a price you love. That’s where the 20/4/10 rule comes in. Here’s a deeper look at this financing guideline and how it can help you get started.

20 Explained

The 20 in the 20/4/10 financing rule refers to the down payment, or how much money you give to the dealership on the day of purchase. The larger your down payment, the smaller your monthly payments, and the more quickly you’ll be able to finish paying off your vehicle. That’s why this guideline recommends putting down 20 percent of the vehicle’s total cost.

4 Explained

You also want to consider how long your term is, which is where the 4 in the 20/4/10 rule comes in. Longer terms tend to have higher interest rates, but you also want to be sure your monthly car payment is achievable. According to this guideline, 4 years is a good term length.

10 Explained

The 10 in the 20/4/10 rule refers to your total transportation costs for the month. This includes vehicle payment, fuel, insurance, and maintenance. You’ll want your total monthly transportation costs to be 10 percent or less of your monthly income.

Learn more about the 20/4/10 rule and begin the financing process right here at Freysinger Mazda. Visit our dealership for one-on-one financing support, and to take the first ride in a new Mazda car or SUV today.