Preston Hyundai
Sales: 410-690-8681 Service: 410-690-8260 Parts: 410-690-8279 4327 Preston Road Hurlock, MD 21643

Finance Tips

How Much Can I Afford?

Before you buy a Hyundai car or truck in MD , you should consider what financing options are available to you and figure out your budget to receive low monthly payments that you can afford. When you purchase a vehicle from Preston Hyundai in MD it may be in your best interest to make a down payment on the auto. The amount of the down payment usually depends on which car or truck you want to buy and the type of financing available to you. Some lenders may ask for a down payment of up to 20% or more; others may require no down payment at all.

The most important thing to remember is that you create a loan that allows you affordable monthly payments. If you aren't able to make the payments you wont have the new car very long. You should make sure to have affordable monthly payments for whatever vehicle you purchase. A good way to figure out what payments are affordable is to take a look at your current monthly expenses.

Based on your monthly income, make a rough estimate of what your monthly car budget should be. A good budget for your monthly payment estimate should include your monthly payment, the cost of driving, and your auto insurance premium. The cost of driving varies depending on the car or truck, how much you drive your auto and your driving style. You should consider the cost of gas for your car or truck, oil, service, insurance and tires. Maintenance and repair costs can be kept at a minimum by getting regular service checkups, as required by warranty, or by carrying a vehicle service agreement with a Hyundai dealer in MD.

Try our payment calculator to estimate your financing options.

Four factors that will determine your monthly payments

  1. Amount of the loan - The Hyundai car's purchase price and the financing charges for your loan will determine the amount of the loan. The smaller your loan amount the lower your monthly payments will be. Making a down payment on the vehicle will bring down the purchase price and should decrease your monthly payments.

  2. Length of the loan - Typical auto loan lengths have terms of 2, 3 or 4 years. In recent years some lenders have been offering longer terms to offer lower and more affordable monthly payments. Many lenders in MD now offer 60-month (5 year) financing programs. While lengthening the loan term will give you smaller monthly payments, it will not reduce the total amount of your loan.

  3. Interest rate - Almost all auto loans carry fixed interest rates. The fixed interest rate is set in advance and remains the same throughout the loan. As a result, the monthly installment payments are the same each month. Lowering your fixed interest rate can give low monthly payments.

  4. Type of loan - Many dealerships and lenders are offering more flexible auto loans that help reduce the length of the loan or reduce monthly payments with a variable-rate auto loan. The interest rate a buyer pays rises and falls depending on the fluctuation of interest rates in the marketplace. The changes typically do not increase or lower the monthly payment. Instead, the length of the loan will be shortened or extended--if interest rates fall, the buyer makes fewer payments; if they rise, the buyer makes more payments.

Lower Payments

Lower Financing Charges

Faster Ownership

  • Large Down Payment
  • Longer Loan Term
  • Smaller Loan
  • Large Down Payment
  • Shorter Loan Term
  • Low Interest Rate
  • Large Down Payment
  • Higher Monthly Payments
  • Shorter Loan Term