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: A more common guideline recommending a 20% down payment , a 4-year loan term , and a total transportation cost (including insurance and maintenance) of no more than 10% of your gross income .

: Some experts, like those at Edmunds , suggest your car payment alone should not exceed 15% of your take-home pay . Key Components of Auto Debt auto debt

: The length of time you have to pay back the loan. While longer terms (e.g., 72 or 84 months) lower your monthly payment, they significantly increase the total interest you pay over time. Strategic Debt Management How Do Car Loans Work? - Bank of America : A more common guideline recommending a 20%

The "proper" piece of auto debt for your budget is generally considered to be a monthly payment between , depending on which financial guideline you follow. Affordability Guidelines While longer terms (e

: The actual amount of money you borrow to buy the car after your down payment.