Mmastodon LifeAutos first seen 2 d ago, last 2 h ago, peak #3

The 20/4/10 rule for affordable car buying

Original: How much car can you actually afford? The 20/4/10 rule: 20% down, 4-year loan max, payment + insurance under 10% of gros

Personal finance discussions are circulating a simple budgeting formula for car buyers: put 20% down, keep the loan to four years maximum, and hold total car costs, payment plus insurance, under 10% of gross income. A worked example shows someone earning $75,000 a year can spend roughly $625 a month, or about $475 after insurance, which supports a loan near $19,800 at 7% over 48 months.

Why now: High car prices and loan rates are pushing people to share practical affordability guidelines.

20/4/10 rulecar buyerspersonal finance

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• How much car can you actually afford? The 20/4/10 rule: 20% down, 4-year loan max, payment + insurance under 10% of gross income. $75k salary = $625/mo. Minus $150 insurance = $475 payment. At 7% over 48 months that's a ~$19,800 loan. With $8k down + trade-in: a car of about… · smartbudgetsheets · 2

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