What's the single most important rule to financing a car?
What's the most important rule when financing a vehicle? I'm financing a car and I know many people have rules regarding the practice.
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Answered on Jul 01, 2021
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.
“If you’re financing a car, you should definitely adhere to a set of guidelines. But which one is most important is entirely in the eye of the beholder.
Some of the most important rules include:
- Don’t finance a car that costs more than 10% of your monthly income
- Put at least 20% down
- Don’t get a term longer than 48 or 60 months (avoid 72-month loans)
- Walk away if you don’t feel comfortable
- Always shop around
Since these rules all go hand-in-hand, there’s no single steadfast rule that will prevent you from getting burned.
Instead, employ all of these rules, and you’ll get the best deal on a new car that’s right for your needs and budget.”
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