The 50/30/20 rule for car payments is a car payment budget rule where you set your car payment budget based on your income and other expenses.
50% of your income should be used for needs such as housing, food and transportation.
30% of your income can go for wants like entertainment, travel and other nonessential items.
And 20% of your income can go for savings, paying off credit cards and meeting long range financial goals.
If a car is a need then the repayment is a need.
If the car is a want because you bought a Ferrari then it’s a want.
If it’s somewhere in between then you could split it but that seems very complicated.
In the All Your Worth 50/20/30 method, the 50 isn't really needs.
It's Obligations.
These are all the things you would still have to pay for, whether contractually or because you need to live, in the case you lost your job.
It's set at 50% because typically that's what unemployment benefits pay in many states (although that's become harder).
Excess payments toward debt are considered part of saving.