Finance
Car Payment Affordability
Income plus the 20/4/10 rule equals max car price you should consider.
Max car price
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- Max payment (10%)
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- Max loan
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- Cash needed down
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FAQ
What is 20/4/10? +
20 percent down, 4-year max loan, all car costs (payment + insurance + gas) under 10 percent of income.
Is the dealer payment estimate right? +
No. Dealers stretch terms to lower payments. Run your own numbers.