Financial experts use different "rules of thumb" to define manageable auto debt:

: A more common guideline recommending a 20% down payment , a 4-year loan term , and a total transportation cost (including insurance and maintenance) of no more than 10% of your gross income .

: Some experts, like those at Edmunds , suggest your car payment alone should not exceed 15% of your take-home pay . Key Components of Auto Debt

The "proper" piece of auto debt for your budget is generally considered to be a monthly payment between , depending on which financial guideline you follow. Affordability Guidelines

: This conservative approach suggests you put 20% down , finance for no more than 3 years , and keep your monthly payment at or below 8% of your gross income .