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Is $500 a month a high car payment?

If you're looking for a few tips on managing a high car payment, you're not alone. The average monthly car payment is now a record $733, according to Edmunds. And even if your monthly auto loan payments are around $500 per month, that still may be uncomfortably high.
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Is a $500 a month car payment too much?

How much should you spend on a car? Whether you're taking out an auto loan or a personal loan to pay for your car, it's a good idea to limit your car payments to between 10% and 15% of your take-home pay. If you take home $4,000 per month, you'd want your car payment to be no more than $400 to $600.
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What is considered a high car payment?

According to experts, a car payment is too high if the car payment is more than 30% of your total income. Remember, the car payment isn't your only car expense! Make sure to consider fuel and maintenance expenses. Make sure your car payment does not exceed 15%-20% of your total income.
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What is a reasonable monthly payment for a car?

In general, it's recommended to spend no more than 10% to 15% of your monthly take-home income on your car payment, and no more than 20% on your total vehicle expenses, including insurance and registration. Read on to learn how you can determine how much car you can afford based on your financial situation.
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Can I afford a 500 dollar car payment?

Financial experts recommend that your monthly payment should be around 10% to 15% of your monthly take-home pay. Additionally, your total monthly car expenses should be no more than 20% of your monthly income, and this includes your car payment, insurance, maintenance and gas.
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How Dealers turn your Cash down into profit! Car Buying Tips

What car can I afford with 80k salary?

you comfortably afford under an 80 000 salary. a volkswagen golf gti audi a3 a toyota. avalon the kia stinger and the cadillac ct4.
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What car can I afford making 50K a year?

The 2020 Hyundai Sonata is one of the midsize cars you can afford if you pull down a $50K salary. With good credit, the $390 monthly payments are affordable for those in that salary range.
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What's the average car payment in 2023?

The average car payment for a new vehicle is $726 monthly, according to third-quarter 2023 data from Experian — up 3.6% year over year. Meanwhile, new lease payments average $597 (up 4.6%). With the lowest jump at 0.8%, used cars have the lowest average monthly payment at $533.
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Is $600 a month a lot for a car?

Whether a $600 car payment is too much depends on your individual financial situation, budget, and personal preferences. Here are some factors to consider when evaluating whether a $600 car payment is manageable for you: Income: Consider your monthly income.
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How much should my car payment be if I make $60000 a year?

How much should I spend on a car if I make $60,000? If your gross salary is $60,000, your take-home monthly pay is probably around $3,750, assuming about 25% of your pay goes toward taxes and other expenses. Based on the 10-15% calculation, you should spend no more than $562.50 on a monthly car payment.
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What is the average American car payment?

Car payment statistics

The average monthly car payment for new cars is $726. The average monthly car payment for used cars is $533.
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How much is a $600 car payment?

Top 5 Car Prices for a $600 Payment

A $39219 car is $600 per month at 7.42% APR for 7 Years. A $34780 car is $600 per month at 7.42% APR for 6 Years. A $30000 car is $600 per month at 7.42% APR for 5 Years. A $24853 car is $600 per month at 7.42% APR for 4 Years.
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Is $1,000 a month car payment too much?

But what's worrisome is that other buyers with $1,000-plus monthly payments are spending more than they can really afford, putting themselves at risk of being underwater on their loans and in a tight spot if they have to sell.
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Why is my monthly car payment so high?

Your monthly car loan payment is largely affected by your loan amount, interest rate and loan term. Your credit, debt and income can play a key role in determining your overall loan cost, so it's important to know your current credit and take steps to improve it, if necessary.
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Is a 5 year car payment bad?

A longer loan term means you are more likely to be upside down on the loan at some point in the future. Being upside on an auto loan means you owe more than the car is worth. This is because a larger portion of the monthly payments early in the loan will go toward paying interest rather than the principal owed.
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Is $800 too much for a car payment?

Experts say your total car expenses, including monthly payments, insurance, gas and maintenance, should be about 20 percent of your take-home monthly pay. For non-math wizards, like me – Let's say your monthly paycheck is $4,000. Then a safe estimate for car expenses is $800 per month.
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How much should I spend on a car if I make $100000?

Many lenders approve car loans (and refinance loans) with a DTI around 50%. To find out how much car you can afford with this 36% rule, simply multiply your family's income by 0.36. So if you earn $100,000, for example, you could afford to take out a car loan of up to $36,000 — assuming you don't have any other debt.
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How much should I spend on a car if I make $300000?

One school of thought holds that all your automotive expenses — gas, insurance, car payments — should not exceed 20% of your pretax monthly income. Other experts say that a vehicle that costs roughly half of your annual take-home pay will be affordable.
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What is the 20 3 8 rule?

The 20/3/8 car buying rule says you should put 20% down, pay off your car loan in three years (36 months), and spend no more than 8% of your pretax income on car payments. As we go into depth to determine how realistic this rule is, you may consider whether it can actually help you budget for your next car.
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How much is a $30000 car payment for 5 years?

With a $1,000 down payment and an interest rate of 20% with a five year loan, your monthly payment will be $768.32/month.
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Do most families have 2 car payments?

However, it might be difficult to qualify for more than one, and having multiple car loans outstanding might not make financial sense. In practice, few people have more than two auto loans at once.
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Is a car loan bad debt?

Generally speaking, cars purchased with a large down payment and with a short-term car loan are considered to be good debt. That's because large down payments usually mean lower interest rates. Further, a shorter loan term means you'll pay less in interest over the life of the loan.
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What credit score is needed for a 50k car loan?

There is no set minimum FICO® Score to get a car loan. However, a good score at 720 or better will get you the best rate. Consider spending some time improving your credit score before shopping for your next car. Even moving up a few points can make a big difference if you have a low score.
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What car can I buy with a 70k salary?

Based on the 20/4/20 rule, with an average interest rate, you can afford a $19,000-20,000 car on your $70k salary.
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How much should I spend on a car if I make $200000?

Financial experts answer this question by using a simple rule of thumb: Car buyers should spend no more than 10% of their take-home pay on a car loan payment and no more than 20% for total car expenses, which also includes things like gas, insurance, repairs and maintenance.
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