Find out how much car you can realistically afford based on your income.
There are two main rules for car affordability. The 35% rule: your car's total price should not exceed 35% of your annual gross income. The 10% rule: your monthly car payment should not exceed 10% of your monthly take-home pay.
Put 20% down, finance for no more than 4 years (48 months), and keep total monthly car costs (payment + insurance) under 10% of gross monthly income.
Budget for insurance ($100–$200/month), fuel ($100–$200/month), and maintenance ($50–$100/month). These can add $250–$500/month on top of your car payment.