September 22, 2021

The 20/4/10 Rule : 1) Make a down payment of at least 20%. 2)Finance a car for …


The 20/4/10 Rule :

1) Make a down payment of at least 20%. 2)Finance a car for no more than 4 years.

3) And not let your total monthly vehicle expense, including principal, interest and insurance, exceed 10% of your gross income.

Be sure to use the simple 20/4/10 rule to avoid taking on a bigger car loan than you can comfortably absorb within your budget.

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