Before you start shopping, determine how much you can afford. Consider not only the purchase price but also ongoing costs like insurance, fuel, maintenance, and registration. A general rule of thumb is to keep your monthly car expenses below 15% of your income.
To break it down, calculate your budget by following these steps:
Example: If your monthly income is $3,000, aim to spend no more than $450 on car expenses. This ensures you’re not overstretching your finances and can comfortably afford your new vehicle.
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