Smart car-buying tips
- The 20/4/10 rule: put 20% down, finance for no more than 4 years, and keep total car costs (payment, insurance, gas) under 10% of your gross income.
- Get pre-approved at a credit union or bank before visiting the dealer, so you can compare against dealer financing.
- Negotiate the out-the-door price, not the monthly payment. Dealers can stretch the term to hit any payment.
- Negative equity: if you owe more on your trade-in than it's worth, that amount gets added to your new loan. Use the "still owed" field to see the effect.