The 20/4/10 Rule for Chevrolet Financing

James Martin Chevrolet always has a big inventory onsite. We also have a great team of Chevrolet financing experts on hand to help you purchase your next automobile. Our team is happy to review important financial concepts, such as the 20/4/10 rule.  

What is the 20/4/10 Rule? 

The 20/4/10 rule is a guideline for determining your budget for a new Chevy car. These three requirements make up the guideline: 

• Make a down payment of 20 percent or more when purchasing the car 
• Take out a car loan with a term of four years or less 
• Total transportation costs—not just your monthly payments—should be less than 10 percent of your monthly income 

Each aspect of the rule will influence your total monthly payments at James Martin Chevrolet. The higher your down payment is, the lower your monthly payments and overall interest costs will be. The shorter your term is, the higher your monthly payments will be, but the less interest you will pay overall.  

Keep in mind that this rule is not set in stone. You can alter any aspects of the rule to fit your financial situation. Use our virtual calculator to estimate your Chevy payments and see how different factors will affect your total costs. 

Strategies to Help Make a 20/4/10 Rule a Reality 

There are several strategies that can help you stick to the 20/4/10 rule:  

• Trade in your current vehicle and put its value towards your down payment 
• Buy a base model rather than a high-end trim 
• Consider buying a car from the previous year’s new inventory 

• Purchase a pre-owned car?instead of a new car 
• Improve your credit score so that you can get more favorable interest rates 

Get Chevrolet Financing in Detroit, MI, Today 

At our Detroit, MI, Chevy dealership, we’re wholly focused on providing you with a great car-buying experience. Let’s talk further today about financing your next Chevy car and how to make the 20/4/10 rule work for you. We can’t wait to help you finance the vehicle of your dreams!