Our team sees plenty of shoppers come in with their hearts set on a RAM truck and questions about how to make the numbers work. Whether you're eyeing a RAM 1500 for daily driving or a RAM 2500 for work duty, the 20/4/10 rule is a straightforward way to figure out where a new truck fits in your budget. Learn how it breaks down for RAM financing with Brunswick Auto Mart.
20 Percent Down
The first number stands for your down payment. Putting 20 percent down on a RAM truck reduces what you finance, lowers your monthly payment, and helps you avoid going upside-down on the loan during the early years when depreciation is steepest. A bigger down payment can also help you qualify for better interest rates.
4-Year Loan Term
The second number is the maximum loan term. Keeping the loan to four years or less means more money goes toward the principal and less to interest over the life of the loan. Longer terms can look attractive because the monthly payment drops, but the total cost climbs the longer you stretch it out.
10 Percent of Your Income
The third number caps your total monthly transportation costs at 10 percent of your gross monthly income. That includes the loan payment, insurance, fuel, and routine maintenance. Sticking to that ceiling keeps the truck working for you instead of working you over every month.
Speak with the RAM Financing Experts at Brunswick Auto Mart
The 20/4/10 rule is a guideline, not a hard rule, and your situation may call for adjustments. Use it as a starting point, then talk through the specifics with our financing team. Brunswick Auto Mart is here to help you put a RAM truck in your driveway with terms that hold up.
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