A $600 monthly car payment is considered high to average, depending on whether the vehicle is new or used, and generally reflects current market trends where payments often exceed $700 for new cars. While it may fit into a tight budget, it is generally on the higher end of the recommended 10%–15% of take-home pay rule.
It depends on how much income you have after your bills and expenses. As a rule of thumb, your car payment should not exceed 15% of your post-tax monthly pay. For example, if you make the U.S. median annual income of $62,1920 after taxes, you could shop for a car that costs up to $606 per month.
Most financial experts recommend spending no more than 10% of your take-home pay on your monthly car payment and no more than 15–20% on total car expenses including gas, insurance, and maintenance.
A $30,000 car payment varies, but expect roughly $450 to $600 per month for a 5-year loan, depending heavily on your interest rate (e.g., 5% vs. 8%), down payment, and loan term; a shorter term or higher rate means higher monthly costs, while a longer term or better rate lowers them. For instance, at 7% over 60 months, it's around $590-$600, but with a 5.74% rate for 60 months, it's closer to $576, or around $490 for 48 months.
As a general guideline, your car loan payments should be less than 10 to 15 percent of your take-home pay each month.
According to this guideline, your car payment shouldn't be more than $750 per month (5,000 x 0.15 = 750). A $500 payment would be 10% of your monthly income. If you earn $3,000, then your monthly payment should be no more than $450 (3,000 x 0.15 = 450).
For a $20,000 car loan over 5 years (60 months), your monthly payment will typically range from about $359 to $392, depending heavily on the Annual Percentage Rate (APR), with lower interest rates resulting in lower payments and less total interest paid over the life of the loan. For example, at 3% APR, the payment is around $359, while at 5% APR, it's closer to $377, and at a slightly higher rate (like 6.94% for a different loan), it would be around $392.
🚗 The average car payment in the U.S. is now around $700 to $800 a month. Used car payments often run $500 or more. That does not happen by accident. Long loans, high interest rates, and expensive vehicles push payments higher fast.
Best Cars with Payments Under $500
Toyota Corolla: A compact car with excellent fuel efficiency and low maintenance costs. Hyundai Elantra: Stylish, affordable, and packed with modern technology. Honda Civic: Known for reliability and strong resale value.
As a general rule, you should pay 20 percent of the price of the vehicle as a down payment. That's because vehicles lose value, or depreciate, rapidly. If you make a small down payment or no down payment, you can end up owing more on your auto loan than your car or SUV is worth.
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.
What car can I buy for $600 per month? A $30000 car has a monthly payment of $600 for 5 Years at a 7.42% interest rate. Check the payment with tax and tags. A $39219 car is $600 per month at 7.42% APR for 7 Years.
For years, dealerships have been using a tactic called a “four square”—a sheet of paper divided into four boxes where the salesperson will write down your trade value, the purchase price of the vehicle you're buying, your down payment, and your monthly payment.
Long-Term Strategies (6-12 Months)
The best strategies for raising your credit score 100 points or more are long-term strategies. These usually take six to 12 months to get results. If you're in the good-to-excellent credit score bracket — over 700 — you are already doing many things right.
One-fifth of car buyers agree to $1,000 a month
In the used car segment, 6.3% of buyers committed to $1,000 or more for a monthly payment, also a new record compared with 5.4% in the fourth quarter 2024, according to Edmunds. This might sound alarming, but it's been the story throughout 2025.
Car payment statistics
The average monthly car payment for new cars is $748, while used cars had a slightly lower payment of $532, according to Experian's quarterly State of the Automotive Finance Market report.
Beyond the monthly payment, you'll also face years of variable expenses like car insurance, gas, maintenance and taxes, which can spike without warning. By considering these costs before buying a new or used car, you'll be better prepared for the financial ups and downs of hidden car ownership costs.