Cars

How Much Car Can I Really Afford?

Priya Anand · April 10, 2026 · 5 min read

Dealers love to quote you a monthly payment. They rarely quote you a total cost. That's how a $28,000 car quietly becomes a $41,000 car.

The 20/4/10 rule: put 20% down, finance for no more than 4 years, and keep total transportation costs under 10% of gross income. Cars that fail this test are cars you're financing at the expense of something else — usually retirement or a home.

Buy the car you'd still be happy with in year 6. Depreciation is brutal in years 1–3, so keeping a car long past the loan is where real savings live.