Best Way To Buy First Car Apr 2026

Put 20% down , finance for no more than 4 years , and keep total monthly vehicle expenses (payment, insurance, fuel) under 10% of your gross income .

Before looking at cars, you must determine what you can actually afford. Experts recommend two primary rules of thumb: best way to buy first car

Ensure your car payment alone does not exceed 15% of your monthly take-home pay . Put 20% down , finance for no more

Remember to budget for sales tax, title, registration fees, and a "maintenance fund" of roughly $50–$100 per month for unexpected repairs. 2. Choose Between New and Used Put 20% down