A $750 monthly car payment is very high, often exceeding recommended budget guidelines (10-15% of take-home pay) for many, despite being near the 2025 national average for new cars (roughly $745-$772). While it is a common amount for new vehicles due to high prices and interest rates, it may overextend your budget.
The average car payment for a new car in America is up to $750 according to Edmunds...
Go and enjoy life travel and invest more. That's a great point! Even with a high income, $700/month is a lot to allocate towards a car. There is an advantage of buying a new car like not having to worry about the maintenance too much and it's still under warranty for a long time.
Financial experts recommend spending no more than 10% of your monthly take-home pay on your car payment and no more than 15% to 20% on total car costs such as gas, insurance and maintenance as well as the payment. If that leaves you feeling you can afford only a beat-up jalopy, don't despair.
🚗 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.
Consider refinancing, trading in or reaching out to your lender as potential ways to make your payment more manageable.
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.
The average interest rate for new car loans with a 750 credit score is 6.87%. Used car loans carry an average interest rate of 9.36% for those with a 750 credit score.
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.
What is the £750 New Motability Customer Payment? The £750 New Motability Customer Payment is a financial incentive designed to make it easier for new customers to join the Motability Scheme and acquire a vehicle that meets their specific needs.
To avoid unnecessary dealership fees, challenge or refuse charges for dealer prep/vehicle prep, advertising fees, and VIN etching, as these are often inflated or already covered, and negotiate away add-ons like paint protection, nitrogen tires, or fabric seals, which can be done cheaper elsewhere; always question vague "doc fees" or "market adjustments". Focus on the vehicle's total price, not just monthly payments, and research standard costs like DMV fees in your state to avoid overpaying for processing.
Car Payments Now Average More Than $750 a Month. Enter the 100-Month Car Loan. The price of new cars and trucks in the U.S. has increased 33% since 2020, and consumers are piling on interest as they stretch out loan terms to eight, nine and nearly 10 years.
Dave Ramsey's core car rules emphasize paying cash, avoiding new cars (unless you're a millionaire), keeping your total vehicle value under half your annual income, and using a strict budget, often suggesting the 20/4/10 rule (20% down, 4-year loan, 10% total car expenses) as a guideline if financing, but preferring no debt at all to avoid depreciating assets trapping you. He stresses buying reliable, used vehicles to prevent debt and build wealth.
Rates and terms are subject to change without notice. Example: A six year fixed-rate loan for a $25,000 new car, with 20% down, requires a $20,000 loan. Based on a simple interest rate of 3.4% and a loan fee of $200, this loan would have 72 monthly payments of $310.54 each and an annual percentage rate (APR) of 3.74%.
To lower your car payment, you can refinance for a lower interest rate, extend the loan term (but pay more interest overall), negotiate with your lender for a loan modification, sell or trade in for a cheaper car, or remove optional add-ons like extended warranties from your loan. Making a larger down payment or extra principal payments reduces the total loan amount and interest, while switching to a lease might offer lower monthly costs but you don't own the car.