The Honda financing process doesn’t have to be overwhelming. At Hall Honda Virginia Beach, we provide you with the tools and resources you need to feel confident on the purchasing journey. Learn about how to set the budget for your next car purchase with support from our team.
Check Your Credit Score
Your credit score plays an important role in the vehicle financing process because a higher credit score typically leads to more favorable terms. You want to check your credit score at the start of the financing process, so you can estimate your interest rate.
Estimate Your Trade-in Value
Another important factor to consider when budgeting for your next car is trade-in vehicle value. When you trade in a car, you won’t have to contribute as much to your down payment, and you’ll also lower your sales tax, which can make a big difference. This affects your monthly payments and the overall budget for your next vehicle.
Use the 20/4/10 Rule
If you’re not sure where to start, the 20/4/10 guideline can help you set a budget that works for your needs. It recommends that you put down 20% of the vehicle cost on the day of purchase and pay the vehicle off within four years. The 10% refers to your monthly cost of transportation, including vehicle payments, insurance, fuel, and service, which should not exceed 10% of your monthly income.
Begin the Honda Financing Process in Virginia Beach, VA
When the time comes to finance your next vehicle, contact Hall Honda Virginia Beach. Explore our easy-to-use tools, like an online finance application and payment calculator, and meet with our team for expert advice. Take the worry out of vehicle financing today.
