Answer: 20/4/10. Read below for additional details.

From NY Times:

Car buyers should aim to put down at least 20 percent in cash, take out a loan for no more than four years and keep the cost of principal, interest and insurance to no more than 10 percent of household income.

Here are some of the latest trends in car buying (avg. loan amount, term, and percentage leased vs. bought) that may be of interest:

Experian Automotive said that in the first quarter of this year, the proportion of new cars bought with the help of financing rose to more than 86 percent, and the average loan amount topped $30,000, which is the highest since Experian began tracking the data. The average term for a new-car loan is now 68 months — about five and a half years — and some loans stretch as long as seven years.

(Auto leases are also becoming more popular because they often offer lower payments than a traditional car loan. Leases accounted for more than 30 percent of new-car transactions in the first quarter, Experian reported. With a lease, the customer makes payments for a set period of time, then typically can choose either to return the car to the dealer or to buy it.)

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About the Author

Tim Ranzetta

Tim's saving habits started at seven when a neighbor with a broken hip gave him a dog walking job. Her recovery, which took almost a year, resulted in Tim getting to know the bank tellers quite well (and accumulating a savings account balance of over $300!). His recent entrepreneurial adventures have included driving a shredding truck, analyzing executive compensation packages for Fortune 500 companies and helping families make better college financing decisions. After volunteering in 2010 to create and teach a personal finance program at Eastside College Prep in East Palo Alto, Tim saw firsthand the impact of an engaging and activity-based curriculum, which inspired him to start a new non-profit, Next Gen Personal Finance.