A car is the second-biggest purchase most households make, and the financing is where dealers earn their margin. These guides show how the 20/4/10 rule turns income into a realistic price, what a 72- or 84-month loan adds in interest, and how to compare a cash rebate with promotional financing using your own pre-approved rate. Each one comes with the numbers worked out and a link to the matching auto loan and lease calculators. Start with how much car you can afford.
A longer car loan lowers the payment but costs more interest and leaves you owing more than the car is worth for longer. Here is the comparison for a $35,000 loan.
Read more about 72- and 84-Month Car Loans: Lower Payments, Higher RiskDepreciation, interest, insurance and repairs add up differently for new and used cars. In this example the used car saves about $8,486 over five years.
Read more about New vs Used Car: The Five-Year Cost ComparisonDepreciation is usually the biggest cost of owning a new car. A $40,000 car can lose $8,000 in the first year. Here is the curve and what to do about it.
Read more about Car Depreciation: How Fast Cars Lose Value, Year by YearLeasing has the lower payment, but over six years it cost about $18,857 more than buying and keeping in this example. Here is the full comparison.
Read more about Lease vs Buy a Car: The Real Cost Over 3 and 6 YearsThe sticker price is the wrong place to start. Start with a monthly all-in transportation budget, then work backward to a price. Here is the 20/4/10 rule applied to three incomes, plus what a 72- or 84-month loan really costs.
Read more about How Much Car Can I Afford? The 20/4/10 Rule With Real NumbersManufacturers often offer "$3,000 cash back or 1.9% financing, not both." The winner depends on three numbers: the rebate, the promotional rate and the rate you can get on your own.
Read more about Cash Back or Low APR? How to Pick the Better Car Deal
