: Your total automotive budget—including payments, insurance, fuel, and maintenance—should not exceed 20% of your monthly take-home pay . The 20/4/10 Rule : This specific framework suggests: 20% down payment. 4-year (48-month) loan term. 10% of gross monthly income spent on total car expenses.

The sticker price is only one part of the financial impact. When calculating what you can afford, you must include: Car Affordability Calculator: How Much Car Can I Afford?

Financial experts recommend several "rules of thumb" to keep your car affordable:

: Aim to keep your monthly car payment at or below 15% of your take-home pay .

For a more conservative approach or if you are buying used, try to stay at .