FRESNO, Calif. (KMJ) — The average cost of a new vehicle, $33,865, is said to be too steep for many median-income households, in the nation’s largest cities.
According to a new Bankrate.com study, most consumers are spending too much money on cars, at the expense of things like college funds, and retirement savings.
Bankrate recommends abiding by what’s called the “20-4-10 rule.”
Put 20 percent down, finance the car for no more than 4 years, and cap interest and insurance at 10 percent of gross income.
