Car Purchase Advice: What % of Net Worth is Standard?"
Hey all! Planning to get a car just for the fun of it. Any quick thoughts on the average percentage of net worth people spend on cars? 🚗💰 Thanks!
Blair Lee
Stealth
a year ago
AFAIK there's this 20-4-10 rule for car financing
• You should have 20% for downpayment.
• Loan should not exceed 4 years.
• EMI should not exceed 10% of your monthly income
All post tax, in hand income.
Coy Lee
Stealth
a year ago
Networth shouldn't be linked to car. It'll have an age component because of that. Follow the 20-4-10 rule instead.
If it’s just for fun, I won’t go with the financing option at all. All cash!
