Buying a car can feel overwhelming, especially when trying to stick to a budget. The 20/3/8 rule provides a simple framework that helps car buyers in Lafayette make smart financial decisions. This proven method takes the guesswork out of determining what you can truly afford.
The 20/3/8 rule breaks down into three parts. First, put down at least 20% of the car's value. Second, finance the vehicle for no more than three years. Third, keep your total monthly car expenses under eight percent of your gross income. This includes your loan payment, insurance, and gas. Following these guidelines helps prevent financial strain and ensures you choose a vehicle that's in your budget.
At Lewis Motor Sales Inc on Sagamore Parkway, our team helps buyers apply the 20/3/8 rule to find the perfect vehicle. Browse our used inventory to find quality cars in your budget. We're committed to helping Indiana drivers make informed decisions that lead to long-term satisfaction.