Re: % of income to pay for a car
I did that in 2003. I financed a car that cost half of my yearly income. Financed over 5 years @ 3.9% interest, the monthly loan payment consumed 10% of my income. It wasn't a stretch at all, but as I started dreaming about buying a house, my opinion has changed. I just sold that car in december '06.
Right now I own two cars free & clear, but their combined cost was less than 10% of my yearly income.
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