Things To Know — Before Buying A Car

Personal finance experts recommend specific rules to avoid being "car poor."

: Dealers often push 72- or 84-month loans to lower monthly payments. In 2026, these are considered "warning signs" as they lead to paying thousands more in interest and potential negative equity (owing more than the car is worth). Americans Pay $575 per Month in Hidden Car Ownership Costs things to know before buying a car

: A more flexible guideline suggests your monthly payment alone should not exceed 15% of your take-home pay . Personal finance experts recommend specific rules to avoid

: Aim for a 20% down payment , a loan term of no more than 4 years , and keep total monthly costs (payment, insurance, fuel, and maintenance) under 10% of your gross income . and keep total monthly costs (payment