By Tim Kowols
Dedicating too much of your monthly income to car payments can throw your budget out of whack. Bankrate.com says experts recommend not spending more than 20 percent of your after-tax income on vehicle-related expenses, which includes fuel, maintenance, insurance, and monthly car payment. Gay Pustaver from Money Management Counselors says not considering those factors in addition to your credit score when you get a loan could spell trouble.
Pustaver recommends forming a budget plan before you start shopping around for vehicles and car loans so you know what you can afford.