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Nugget of Knowledge: Numbers to know before you buy a vehicle

20, 4 and 10 are numbers to factor in when buying a car or truck

(WYTV) - Here's a handy rule that you can use to find out what you can afford to spend on a car. It comes from a financial blog.

Remember these numbers: 20, four and 10. 

If it's at all possible, try to put 20 percent down on the price of the car before you drive it home.

Then, four: Plan on making monthly payments for no more than four years. 

Finally, the number 10: It represents your expenses, and those are your monthly payments -- gas, interest on your car loan, maintenance and your car insurance. Together, they should total no more than 10 percent of your gross monthly income.

Your car payments will come out to be the total cost of the car, minus the 20 percent down payment, divided by 48 months. 

Add in that number 10 -- the insurance, gas and other necessities -- and that's what you can expect to spend on your car each month.


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