What % of income should go towards car payment?
What is the guideline for what percentage of your take-home monthly pay should be going towards a car payment (I'm only talking loan- no insurance or gas)? I will probably do a 5 year term, especially if interest rates are low.
I know other debt payments is relevant. Right now 33% of my take-home goes toward mortgage, and 3% goes toward student loan. The remaining 64% goes towards general living expenses and savings.
Given these stats, what % would you be comfortable with going towards car payment? If I were to buy a nicer car, I'd also have to consider higher insurance, gas prices, etc.
Appreciate any input.