Quote:
Originally Posted by ST1LE
The payment alone is not enough info to answer this question. The 20/4/10 rule is a really good one.
Put down no less than 20%.
Finance the car for no more than 4 years.
Your payment should be no more than 10% your gross income.
|
IMO that's actually pretty aggressive, I'd be uncomfortable dumping 10% of my gross into a car.
My philosophy is slightly different... I finance for the longest term I can get at the lowest rate (usually 5 years, occasionally 6), I never take out a loan at more than the rate of inflation, and I don't put anything down unless I can't really find a sub-inflation loan rate. Hasn't been a problem in a lot of years, and I suspect it will be a while yet before rates start ticking back up.
Definitely agree that if you can't stomach the payment, don't do it. Being beholden to someone for debt with no easy way out is no way to live life. Manage your money as frugally as possible while still having some fun
.