What is the 20/4/10 rule for car buying?

Heard of the 20/4/10 rule for car buying? Here’s the breakdown:

20% down payment 

Loan term no longer than 4 years (48 months) 

Keep total car costs (payment, insurance, fuel) under 10% of your monthly income

Example: If you take home $4,000/month, your car expenses should stay around $400.

Following this rule helps you avoid overpaying, keeps your loan manageable, and protects your equity. Smart buying starts here!