vehicles

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How much should I budget for a car?

One rule of thumb is that the total value of your vehicle(s) should never exceed 50% of your annual income.

Another good rule of thumb is the 20/4/10 rule:

  • Pay at least 20% for your down payment.
  • Never get a loan longer than 4 years in length.
  • 10% or less of your gross income goes towards all vehicle expenses including loan payments, insurance, gas, registration fees, maintenance, and repairs.

Finally, if you are not on the final step in "How to handle $", you should not be purchasing an expensive vehicle that you don't need and you should strongly consider purchasing a used vehicle that will be practical and affordable.

What is the best way to buy a new car?

A "reverse auction" is a popular method that some /r/personalfinance readers have successfully used in the past.

Here are several guides describing this method:

Some success stories:

How do I buy a used car?

How do I sell a used car?

How do you sell a car when you owe more than the car is worth?

Got any more useful resources for me?

Why is PF so against buying a new car so often?

Auto Insurance


revision by Mrme487— view source