How Much Can You Actually Afford to Spend on a Car?

For many Americans, a car is one of their biggest single purchases. And cars have gotten a lot more expensive in recent years. In fact, Experian reports loan balances across all loan types are at record highs, with the average loan payment on new vehicles now exceeding $550.

As cars have grown more costly and Americans have taken out larger and longer loans to afford them, more vehicle owners have found themselves in debt trouble -- and auto loan delinquencies have hit record highs.

All of this raises an important question: How much should we be spending on our cars? This guide will help you avoid borrowing more than you can comfortably repay.

Source Fool.com