Car Buying and the 20/8/3 Rule: Smart Financing, Payments & Ownership Costs | EliteTechModz

Buying a car in today’s market requires more than just comparing sticker prices — it takes a disciplined financial strategy. That’s where the 20/8/3 rule comes in. By putting down 20%, keeping your car loan payment under 8% of your monthly income, and limiting total vehicle expenses to no more than 15% of take-home pay, buyers can stay solvent even in an environment of rising interest rates and volatile residual values. Following this framework not only reduces the risk of negative equity but also ensures long-term financial stability while enjoying vehicle ownership.