Understanding the 20/4/10 Rule of Jeep Financing

Ask any Jeep® driver and they’ll tell you: Buying a new Jeep SUV is a great investment. With a vast range of available models that cater to a variety of drivers’ needs, there’s a Jeep out there for everyone.

But is there a Jeep out there for every budget? The answer is yes! With Jeep financing available through our dealership, we can help get you into the car you need no matter your situation.

Financing Basics

At Kearny Mesa Chrysler Dodge Jeep® RAM, our dedicated finance experts will help you secure a loan package that works for you. But it’s important to understand how Jeep financing works before you visit the dealership.

When financing a new Jeep SUV, you are taking out a loan to cover the cost of the car. Making a down payment will help reduce the amount you need to finance. You decide on a loan term that works for you—the amount of time you’ll be paying it off—and depending on your credit and available interest rates, will set your monthly payment.

20/4/10 Rule

Many financiers follow the 20/4/10 rule when discussing auto loans, which is a recommended formula for a successful auto loan budget. Here’s a breakdown of what it means:

• 20%: The suggested down payment on the vehicle’s full price
• 4 years: The suggested loan term for financing
• 10%: The suggested percentage of your expenses that should be dedicated to vehicle costs

Keep in mind that the 10% of your expenses should include everything from monthly payments to maintenance, gas, and insurance.

Apply for Financing Today

If you’re ready to look into financing a new Jeep SUV, contact our California Jeep dealership to learn more. You can even apply online today for preapproval.