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Determines maximum car price based on income and debt levels following lending guidelines. Ensures car purchase doesn't overburden finances.

Fórmula

Monthly income × 0.15-0.20 = max monthly car expense

Guía paso a paso

  1. 1Monthly income × 0.15-0.20 = max monthly car expense
  2. 2Account for insurance, gas, maintenance
  3. 3Calculate affordable loan amount
  4. 4Match to vehicle price and down payment

Ejemplos resueltos

Entrada
$60k income
Resultado
$18-24k budget

Errores comunes a evitar

  • Using net income instead of gross income
  • Not including all car costs (insurance, maintenance, gas, registration)

Preguntas frecuentes

What's the 20/4/10 rule?

20% down, 4-year loan max, car payment + insurance should be <10% gross income.

What if I exceed affordability guidelines?

Higher risk of default, financial stress, and inability to handle emergencies.

Configuración

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