Once you’re ready to buy a BMW car, it’s time to think about your finances. It is important to plan your budget, and our BMW payment calculator – along with the 20/4/10 rule – can help you do it.
20 – Down Payment
It’s a smart idea to put up at least 20 percent of the purchase price for your down payment. A larger down payment means you won’t have to borrow as much money, so there will be less accrued interest. A trade-in vehicle could help you reach that 20 percent number.
4 – Loan Term
Next, you need to consider the loan term, which is the time frame you will have to pay back the money. A short-term loan lets you pay it off faster – and reduces the interest you will need to pay – but it increases your monthly payments. Going with a loan term of four years can help lower those payments and at the same time let you pay off the loan in a reasonable amount of time.
10 – Monthly Payment
It’s important to think about the loan term and monthly payment together, as they go hand-in-hand. It’s a smart idea not to exceed 10 percent of your monthly income on your car expenses. This doesn’t just include car payments; you also need to factor in things like maintenance and fuel costs.
BMW Financing at BMW of Catonsville
After you adjust the numbers in our payment calculator to figure out what works for you, come down to BMW of Catonsville to find the perfect vehicle. You can also start the financing process by filling our out online application.