How much should you spend on a new car? Not more than 20 percent of monthly income,
say experts. And that should include payments on all the cars you may own, whether
you have one vehicle or six. And we're talking about your take-home pay, not your
gross income.
We all know that a new car loses a significant amount of its value when you drive
it off the lot. That's where the down payment -- the amount of cash you bring to
the purchase -- comes in.