Not everyone has the ability to pay for a car in cash. Rather than driving a clunker off the lot and spending more in maintenance and repairs than a dependable car would cost, it may make sense to take out a car loan and follow our Money Guy guide for purchasing a vehicle.

That’s where our Car Buying Checklist comes in.

Common Car Buying Questions We Answer:

• How much car can I afford based on my income?
• Should I pay cash or finance my car?
• Should I buy a new or used car?
• When is the best time to buy a used car?

What’s Inside the Car Buying Checklist:

This free downloadable resource walks you through the steps to make a smart car purchase without sacrificing your financial future:

• Determine if you can pay cash – We’ll help you run the numbers to see if cash or financing makes more sense for your situation
• Know what you want BEFORE you go to the dealership – Avoid pressure and impulse decisions that can lead to buyer’s remorse
• Follow our 20/3/8 rule – Our framework for responsible car financing: 20% down, 3-year loan maximum, 8% of gross income limit
• Invest more than you spend – Factor in retirement contributions when evaluating monthly car costs

Download our Car Buying Checklist today and explore more practical tools and insights to equip you for your car buying journey.

Ready to dive deeper? Learn all about the Money Guy 20/3/8 Car-buying Rule and use our Car Affordability Calculator to see how much car you can afford based on your income.

Once you have reached step seven of the financial order of operations, saving 25% of your gross income, and are in the hyper-accumulation phase, you have the freedom to spend your hobby money on a car payment if you wish, as long as you have checked all the other boxes, but skipping essential steps is not advisable for long-term wealth building.

Check out our 20/3/8 hub, and check out our car affordability calculator to help you make your next car purchase!