If you’re planning to buy a new or used Subaru model, you are probably going to finance the purchase. This is a great option, as it allows you to pay for your car over time.
One of the first things to think about when financing is your down payment. This Subaru finance guide will help you out.
How Much Should I Put Down?
When it comes to a down payment, it is important to remember this: The more money you supply immediately, the less you will need to borrow.
When there is less to borrow, there is less to pay back. This doesn’t mean, however, that you should overextend yourself; there’s a good rule of thumb to follow when thinking about how much money to put up.
20 Percent
Whatever the sale price of your car, strongly consider putting up at least 20 percent of it for your down payment. This will benefit you right way.
Let’s say you’re looking at a new Subaru Crosstrek that costs $27,000. Subtracting 20 percent takes it down to $21,600. Pretty big difference, right? Trimming that loan down could mean smaller monthly payments and a much shorter loan term.
Using a Trade-In
If you don’t have several thousand dollars to use for a down payment, think about your old vehicle. It may be worth more than you realize, which is why you should find out its value. It may be able to give you that 20 percent all by itself.
Learn More at Heritage Subaru of Ownings Mills
Any more questions about financing or down payments? Get in touch with Heritage Subaru of Ownings Mills. You can also get the financing process started by filling out our online application.
