How Much Money Should I Put Down When I Finance a Jeep® Vehicle?

Here at Woodhouse Chrysler Jeep® Dodge Sioux City, we believe the Jeep finance process should be smooth and easy, so you can focus on picking out the next great car. We’re sharing all you need to know about the vehicle purchasing process, including best practices for putting money down the day you take your car home.

20/4/10 Rule

One of the best ways to determine the appropriate down payment is through the 20/4/10 rule. The 20/4/10 rule breaks down the down payment, length of payment, and the amount you should put toward your car expenses each month.

Using this program, you’ll want to put down 20% of the total vehicle costs as a down payment, pay the vehicle off over the course of four years, and set aside 10% of your monthly income for car expenses (which include the vehicle payment, insurance, fuel, and service).

Consider Outside Factors

As the 20/4/10 Rule indicates, there are several different factors that affect the total cost of your vehicle, in addition to your down payment. You want to consider your down payment in relation to term length, interest rate, and any specials or deals that might be available. Don’t forget to factor in sales tax, as well.

Trade-in Value

Another factor you want to keep in mind is the trade-in value of your vehicle, if you are trading in before you purchase your new Jeep vehicle. Trading in a car will not only significantly reduce your down payment needs, if you have any at all, but it also makes for big savings on sales tax, as well.

Learn everything you need to know about the Jeep financing process right here at Woodhouse Chrysler Jeep Dodge Sioux City. Schedule a finance appointment with our expert service team today.