How Much Car can I Afford?

Experts say you should not spend more than 20% of your monthly income on car payments, this would include all car payments, whether you have one car, or three or more. There are, however a few exceptions, a college graduate, still living at home with minimal bills would be able to afford a larger payment. When deciding how much you can afford, you should also take into account insurance and fuel costs for the vehicles you are considering.