How much car should you buy?

Article written by soccer kits 2014 

When it comes to buying a car, many of us go after our dreams regardless whether we can afford it or not. This is a true statement for many young car buyers but not so much with older buyers. Is there a rule that everyone should follow when buying a car?

The Internet is full of those rules to follow. One rule that took my attention says that you should follow 20/4/10 rule. Down payment of 20 percent, finance it for no more than four (4) years and don’t exceed the total cost of the car including insurance exceed 10 percent of your gross monthly income. Not bad advice. Average price of a new car today is around $32,000. Sales people are trained to sell and they will try their best to add other bells and whistles. But many sales people will also try to entice you with lower interest loans and longer repayment period to suit your monthly budget. This is where many of us get into trouble with buying a car. Do your homework and understand your financial limitations before going to a dealership. Do not borrow money to pay the down payment. Both loans can burden you to a breaking point.

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