MAZDA Financing on a Budget

When it comes to Mazda financing, every car shopper wants to get the best possible deal. The finance experts at Colonial Mazda are the right people to talk with, especially if you're curious about financing on a budget. Here are some important rules of thumb to help guide you to a smart purchase.

Make a Budget

If you want to finance on a budget, the first thing to do is create one. This necessitates considering all of the costs involved with car ownership: the down payment and monthly car payment, as well as insurance, fuel costs, and maintenance expenses.

When making your budget, keep the "affordability ratio" in mind. That is, not spending more than 10% of your monthly take-home pay on your car payment and no more than 15% to 20% on total car expenses.

Credit Score

Your credit score is hugely important. It determines not just the amount of your car loan but also the kinds of loan terms and interest rates you'll have available. The higher your credit score, the more likely it is that you'll qualify for our best terms and rates on the new Mazda car you're interested in. On the other hand, a low credit score might necessitate targeting a more entry-level model or considering the idea of leasing instead of buying.

Loan Length, Down Payment, and APR

Depending on your credit score, the model you're interested in, and whether it's a new or pre-owned Mazda vehicle, the length of your car loan and the associated APR (annual percentage rate) will vary. Loan lengths range from 12 to 84 months, while the APR is highly dependent on your credit score. Optimally, you want to secure a loan of 60 months or less, at the lowest APR possible. Otherwise, you'll wind up spending far more on the car than is recommended.

Meanwhile, the down payment is important for a couple of reasons. For one, the more you put down, the lower your monthly payments will be. And two, a higher down payment might offset any concerns regarding a low credit score.

Get MAZDA Financing Help in Danbury, CT

Follow these tips and you'll find the entire car financing process to be simpler and easier to navigate. When you're ready to move forward, the knowledgeable experts at our Danbury, CT Mazda dealership are here to help you find the right car at the right price.