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	Auto Loan Auto Loan Basics: How much can you afford? Get some relief from the high gas prices Choosing the Right Fuel to Help You Save Money Proper maintenance will help you save on fuel costs Fuel-efficient driving can save massive amounts of gas Saving Money on Gas is Easier than You Think Saving Big Money with Hybrid Vehicles Spending too much money on gas?   Car Search: Finding the best car for you Buying a new car vs. buying used Shopping on the Web for a new car   Financing: How much can you afford? Financing First Buy or Lease Buy or Lease II Top 10 leasing booby traps Pros and cons of leasing Down payment Key financing questions Evaluating loan options and rebates Refinance your auto loan Capitalized cost and residual value   Buying: Using an intermediary Advertising slogans Extended warranties    Car Insurance: Auto insurance No-fault insurance Gap Insurance What you don't know about Car Insurance OEM Parts Insurance Terms New California Law You shouldn't spend more than 20% of your monthly income towards your vehicles. That includes all vehicle payments, insurance and maintenance. It doesn't matter what type of other debt you have. Even if you have no other debt, you should stick to the 20% rule. Cars are not a good investment. The minute you drive a new car of the lot, it can lose as much as 45% of its value. Cars are depreciating constantly. Listen, can you hear it? Your car is sitting there right now going down in value. That means that you don't sink the majority of your income into a vehicle. You'll never see all of the money again. To calculate your monthly payment, include the purchase price, the down payment, interest rate and term of your loan. All of these items affect how much car you can get for your money. If interest rates are low, you can buy a more expensive car to fit into your budget limit. When rates are high, you may not be able to buy such a costly vehicle. Your down payment will affect the size of your monthly payment. It used to be that you had to make a down payment. Today, down payments are pretty much optional for those with good credit. Car companies and dealers want your business so badly, that they will often waive the need for a down payment. The more down payment you provide, the lower your monthly payment. So, you can afford more car and still be under the 20% limit. But don't forget that you are still spending money on an asset that is constantly decreasing in value. Keep in mind the amount you can truly afford to pay. You have to figure in your insurance rates, fuel costs, maintenance and repairs. These can often add up to more than your payment! Some models cost more to repair than others. Insurance rates vary widely from model to model. If you are buying a new car, you will have a warranty for a while. This can save you a lot of money. Look at the fuel costs and gas mileage of the vehicle also. Today's gas prices can dictate what type of vehicle you can afford to drive.