What makes the Volkswagen financing process so easy at Heritage Volkswagen Catonsville? Our team of financing experts offers the information and resources you need to advocate for yourself throughout the purchasing process, and to find a model that you can’t wait to take home within your budget. We’re sharing everything you need to know about financing, starting with the down payment.
Why Does the Down Payment Matter?
The down payment is the amount of money you give to the dealership when you’re ready to take a vehicle home. It’s important to consider the down payment carefully, since it affects monthly costs and accrued interest costs.
The more money you are able to put down the day you buy, the more quickly you’ll be able to pay your vehicle off, which means fewer accrued interest costs over time. You’ll also want to consider how any trade-in vehicles affect your down payment costs.
Use the 20/4/10 Rule
Of course, the amount of money you are able to put down on a new Volkswagen vehicle will depend on your budget. That said, it can be very useful to use the 20/4/10 rule when setting a budget and determining just what that down payment is.
The rule suggests that the down payment should be 20% of the total cost of the vehicle, that you should pay the vehicle off in four years or less, and that your total vehicle costs, including car payment, gas, and insurance, should not exceed 10% of your total monthly income.
When it comes to Volkswagen financing support, Heritage Volkswagen Catonsville is the team for you. We carry easy-to-use financing tools, like a payment calculator and online finance application, as well as an inventory of vehicles you won’t want to miss. Pick out the right Volkswagen at the right price with the support of our dealership.