Auto Debt «PREMIUM · Method»

: Some experts, like those at Edmunds , suggest your car payment alone should not exceed 15% of your take-home pay . Key Components of Auto Debt

: The actual amount of money you borrow to buy the car after your down payment. auto debt

The "proper" piece of auto debt for your budget is generally considered to be a monthly payment between , depending on which financial guideline you follow. Affordability Guidelines : Some experts, like those at Edmunds ,

: A more common guideline recommending a 20% down payment , a 4-year loan term , and a total transportation cost (including insurance and maintenance) of no more than 10% of your gross income . : Some experts