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: Finance for no more than four years. While 84-month loans exist, they often result in paying thousands extra in interest.

: Keep your total vehicle costs—payment, insurance, fuel, and maintenance—under 10% of your gross monthly income. Hidden Costs to Factor In :

Buying your first car is an exciting milestone, but in 2026, it requires a more calculated approach than simply picking a color you like. With new car prices averaging over and used ones around $27,000 , mastering the "total cost of ownership" is your first step toward a smart purchase. 1. Build a Realistic "First Car" Budget

Experts suggest using the as your financial north star:

: Aim to put at least 20% down to minimize interest and avoid "negative equity" (owing more than the car is worth).