Ford Financing Options for Beginners
If you have never purchased a vehicle before, financing may seem daunting. Once you understand the process and your Ford financing options, however, it won’t seem overwhelming. Here Kearny Mesa Ford goes over the key areas to consider.
Down Payment
If you’re planning to buy a new Ford model, you know that this will be a large investment, meaning that it is important to get your finances in order. One of the first things to think about is how much money you have on hand right now to pay for your vehicle. It’s a smart idea to supply 20 percent of the sale price, but if you can go higher, do it — the more you can put up right away, the less you will need to borrow and pay back.
If you’re looking to replace an older vehicle, find out how much it is worth, as its value could help give you a bigger down payment.
Loan Term
The loan term is its length, and this is another area in which you will have many options. In most cases, loan terms start at 12 months and go up by 12-month intervals all the way to 84 months. While it may be tempting to go with a long term to shrink your monthly payments, this will result in having to pay more interest down the road. Conversely, a short long term results in higher payments.
Monthly Payments
The final step is to figure out how much money you want to spend every month on your pre-owned Ford vehicle. A good rule of thumb is to not exceed 10 percent of your income. This doesn’t just include your monthly payment, however, as it should consist of all expenses, including fuel, maintenance, and insurance.
Start the Ford Financing Process in San Diego, CA
Once you have a handle on your finances, it is time to get the financing process started. Our Ford dealership in San Diego, CA makes this easy — just fill out our online application to get pre-approved. If you would rather do things in person, come down to your dealership to speak to one of financing professional
If you have never purchased a vehicle before, financing may seem daunting. Once you understand the process and your Ford financing options, however, it won’t seem overwhelming. Here Kearny Mesa Ford goes over the key areas to consider.
Down Payment
If you’re planning to buy a new Ford model, you know that this will be a large investment, meaning that it is important to get your finances in order. One of the first things to think about is how much money you have on hand right now to pay for your vehicle. It’s a smart idea to supply 20 percent of the sale price, but if you can go higher, do it — the more you can put up right away, the less you will need to borrow and pay back.
If you’re looking to replace an older vehicle, find out how much it is worth, as its value could help give you a bigger down payment.
Loan Term
The loan term is its length, and this is another area in which you will have many options. In most cases, loan terms start at 12 months and go up by 12-month intervals all the way to 84 months. While it may be tempting to go with a long term to shrink your monthly payments, this will result in having to pay more interest down the road. Conversely, a short long term results in higher payments.
Monthly Payments
The final step is to figure out how much money you want to spend every month on your pre-owned Ford vehicle. A good rule of thumb is to not exceed 10 percent of your income. This doesn’t just include your monthly payment, however, as it should consist of all expenses, including fuel, maintenance, and insurance.
Start the Ford Financing Process in San Diego, CA
Once you have a handle on your finances, it is time to get the financing process started. Our Ford dealership in San Diego, CA makes this easy — just fill out our online application to get pre-approved. If you would rather do things in person, come down to your dealership to speak to one of financing professionals.