Calculate your auto loan payment considering vehicle purchase price, down payment, trade-in equity, local sales tax rate, dealer document fees, and loan terms from 24 to 84 months.
Financial experts recommend keeping auto loan terms to 48 or 60 months maximum. While 72 or 84-month loans offer lower monthly payments, you pay substantially more interest and risk being "underwater" (owing more than the vehicle is worth).
What is the 20/4/10 rule for buying a car?
Put at least 20% down, finance for no longer than 4 years (48 months), and ensure total monthly vehicle expenses (loan payment + insurance + fuel) do not exceed 10% of your gross income.