The 20/4/10 rule — the one car-budget guideline that works
20% down, 4-year loan max, total car cost under 10% of gross income. If a car breaks any of these, buy cheaper.
The average new car depreciates 20% in year one. Buying 2-year-old certified pre-owned captures that value at someone else's expense.
Insurance and fuel are the silent killers. A $500 loan payment on a $150 insurance / $250 fuel car is a $900 monthly car — not a $500 one.