Used Car Finance Tips

Money is tight these days and many Americans want to know the best ways to buy a car and remain on a budget. Certified Headquarters would like to help you with some car-shopping pointers. As you know, we specialize in getting our customers fitted with the best used cars while finding ways for you to save cash!

Suffolk County used car finance

Use the 20/4/10 Rule for Buying Used Cars

Have you heard of the 20/4/10 rule? It refers to three critical components of car buying:

  • Always make a down payment of 20% on every vehicular purchase
  • Get your loan paid within four years
  • Don’t spend more than 10% of your monthly budget on auto transportation

You need these rules because they’re the key to staying within the boundaries of your budget. Far too many car shoppers fail to set rules for themselves, and it leads to them becoming underwater from excessive credit.

20% Down Payment

Notice, first, the part about a 20% down payment. It’s no different than buying a house. When you purchase your home, regardless of the mortgage length, you always shoot for a 20% down payment; thereby avoiding the expensive Private Mortgage Insurance (PMI). Even though auto loans don’t work the same as mortgages (auto loans interest are usually steeper), you should aim for a big down payment.

4 Year Rule

Next, pay attention to how long your car loan lasts. Again, we recommend the four-year rule. Many auto dealers offer loans with an APR below 3% for a 60-month duration. If you can pay the car off within four years (48 months), you’ll never need to worry about exceeding the low-APR range.

10% of Your Monthly Budget

For the sake of your monthly finances, Certified Headquarters recommends keeping your vehicle-related expenses no greater than 10% of your budget. Be careful, this includes not only your monthly payment but also all related expenses like gas, maintenance, etc.

Explore the Most Affordable Used Cars in St. James

It also helps to locate the best bargains on the market even when inventories are thinner than usual. For example, you should consider one of our affordable used cars priced at less than $7,500.

Do you have bad credit or even no credit? We can help! Check out our No-Credit-Financing options to learn how you can still afford one of our used cars, trucks, or SUVs.

Certified Headquarters serves the St. James, NY area with several low-cost used cars for sale. We believe everybody should have a chance to own a vehicle without breaking the bank or compromising a bunch. Call us at (631) 366-3700 to learn more. We are located at 873 Middle Country Road in St. James, New York.

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