Using the 20/4/10 Rule with Our BMW Payment Calculator

Keeping track of your finances is important, and auto loans are no exception. If you’re looking for ways to reduce your BMW payment, the BMW of Silver Spring finance team can assist you. We offer numerous tools and resources to help with your BMW finance plan, and we recommend using the 20/4/10 rule to plan your budget.

What Is the 20/4/10 Rule?

The 20/4/10 rule is a way to know the maximum amount you should spend on auto loans each month. It breaks down like this:

• Put a down payment of at least 20 percent on the vehicle.
• Aim for a finance term length of four years.
• Ensure that your monthly BMW payment and transportation costs (including gas, parking, and maintenance) are no more than 10 percent of your gross monthly income.

This is a guideline to follow rather than a hard rule. But with this rule in mind, you can create a BMW finance plan suitable for your budget.

Using Our BMW Payment Calculator

Our BMW payment calculator can give you an expectation of what you’ll owe each month. You can input the price of the car you want and your expected down payment and term length. Then, you’ll get an estimate for your monthly payment.

With this, you can see if you’re following the 20/4/10 rule by ensuring that your monthly payment isn’t too high. You can compare different rates and terms on the fly, too.

BMW Financing at BMW of Silver Spring

To see how you can apply the 20/4/10 rule to a new BMW payment plan, visit BMW of Silver Spring today. Contact our team to discuss auto financing plans and options.