Ready to buy a car but don't want to overspend or drown in debt? The 20/4/10 rule provides guidelines to make a wise automobile purchase:
✅ Put 20% down payment
✅ Finance for 4 years max
✅ Keep expenses under 10% of income
This car buying strategy helps determine affordability based on:
👉 Loan terms
👉 Interest rates
👉 Income percentage
But saving up to pay 100% in cash is an even better option to avoid:
❌ Interest charges
❌ Monthly payments
❌ Potential repossession
Follow these tips to reach your savings goal faster:
📈 Realistic used car choice
📅 Automatic monthly transfers
💰 Income increase and expense decrease
🧘♀️ Patience and consistency
Owning your wheels outright brings financial freedom! Determine the best car buying approach for your situation.
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