How to Budget for an Affordable Used Car

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Before you even start browsing used car listings, sit down and honestly tally up your monthly income and fixed expenses. Your goal is a comfortable monthly payment, plus wiggle room for insurance, gas, and inevitable repairs. A good rule is spending no more than 10-15% of your take-home pay on the car itself. Focus on total cost of ownership, not just the sticker price. This will keep you from falling in love with a car that'll strain your wallet.