When it comes to Subaru finance, having a smart strategy can make all the difference in your ownership experience. At Rafferty Subaru, we want you to feel confident in every decision. One simple, effective method drivers can use to stay on track is the 20/4/10 rule. Here’s what those numbers mean.
What Is the 20/4/10 Rule?
The 20/4/10 rule is a widely recommended guideline to help car buyers manage their budgets responsibly. It suggests that you:
- Make a 20 percent down payment on your vehicle
- Choose a loan term no longer than four years
- Keep your total transportation costs (including your car payment, gas, and insurance) below 10 percent of your gross monthly income
By following this rule, Subaru drivers can enjoy peace of mind knowing they’re keeping their finances in check while enjoying everything their vehicle has to offer.
Applying the 20/4/10 Rule to Subaru Finance
For drivers considering a Subaru model, the 20/4/10 rule helps you stay within your financial comfort zone. Making a 20 percent down payment reduces your loan amount, which can lead to lower interest costs and shorter payoff times. Choosing a four-year loan term helps prevent long-term debt, while keeping total car-related expenses under 10 percent of your income ensures you're not stretching your monthly budget too thin.
Tools and Resources at Rafferty Subaru
At Rafferty Subaru, we understand that navigating vehicle financing can feel overwhelming—but it doesn't have to be. Our online tools make it easy to plan ahead. You can apply for Subaru financing online, estimate your monthly payments, or even value your trade-in before you visit.
Start Your Car Shopping Journey with Confidence
Subaru vehicles are known for their reliability and long-term value, and with smart budgeting, your next purchase can be just as dependable. Visit Rafferty Subaru to get started, or explore our wide selection of vehicles through our website to find the Subaru model that best fits you.
