How much car can you efford?
Experts say that you shouldn’t spend more than 20% of your take home income on your cars.
Remember that besides your monthly loan payment there is insurance, fuel, maintenance and repairs that are major factors in determining how much you can afford. All of these things need to be included when figuring your monthly car payment.
Edmunds.com provides a free calculator that can help you determine the true cost of owning a car. You should check it out before you buy.