When buying a car, whether new or used, experts say that a specific framework can be a great starting point to keep costs down.
The so-called “20-4-10” rule uses three components to help you determine if a car purchase is affordable: the ideal down payment, the maximum recommended auto loan term and the share of your income that experts say should go to vehicle-related costs per month.
Not only does the framework help you stay within your budget, but some aspects can also keep you from becoming “underwater” or “upside down” on a car, or owing more on a vehicle than what it’s worth.
However, “there’s always wiggle room,” said certified financial planner Chelsea Ransom-Cooper, co-founder and chief financial planning officer of Zenith Wealth Partners in Philadelphia.
Here’s a look at other stories affecting the financial advisor business.
