Car Affordability Rule of Thumb
20-4-10 rule you have to be able to check off all 3 of these before you can say yes this car is affordable. Make 60000 and the car price should fall below 21000. Mother Goose Volland Edition Little Jack Horner Nursery Rhymes Poems Nursery Rhymes Mother Goose The downpayment on your car should be at least 20 of the purchase price. . This is the 110 rule. Since the average driver gets into an accident once every 10 years these rules exist to keep drivers. Just use this rule-of-thumb. So if your after-tax monthly. At 28k your car should have a sticker price less than 14k. Whether youre paying cash leasing or financing a car your upper spending limit really shouldnt be a penny more than 35 of your gross annual income. When buying a car you should put down at least 20 keep your car loan limited to no more than four years to avoid interest and spend no more than 10 of your gross income on transportation. The 40 ...