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Is a $700 car payment too much? - Quora. Yes and **no**. If you are buying an expensive car and you can afford the payments that's normal. But if your buying a cheaper vehicle then yes that would be pretty high payments.

Experts say your total car expenses, including monthly payments, insurance, gas and maintenance, should be about **20 percent** of your take-home monthly pay. ... Then a safe estimate for car expenses is $800 per month.

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.

How much should you spend on a car? If you're taking out 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**. ... 60 months if you're buying a new car.

A $500 car payment is **about average right now**. The concept of “too much” is going to depend on your income and living expenses, your insurance expense, and other budget factors.

a car pyament should be no more than 10% of your take home pay. So unless you're taking home more than $4500/mo, **$450 is too much for a car payment**.

What is the average car payment? As of 2021, the average monthly car payment in the U.S. is **$575 for new vehicles and $430 for used vehicles**.

The average new car payment in America has crept above the $500 per month mark for the fist time, settling in at **$503**, according to a recent study by Experian. ... If you have to finance your new car purchase over 73 to 84 months, you can't afford the car. Buy something cheaper — much cheaper.

The result is that the car will be a lot more expensive in the end. In the example we've given, a car payment of $400 per month for five years (60 months) equates to **$24,000**. But the same $400 per month spread out over six years (72 months) is $28,800, while it's $33,600 over seven years (84 months).

When browsing your options, keep in mind that financial experts will typically tell you to spend less than 10% of your monthly take-home pay on your car payment. That means if your take-home pay is $3,000 a month, plan **to spend no more than $300 on your car payment**.

Edmunds data for the same period in 2020 shows an average monthly payment of **$437**, representing a not-insignificant increase of $83 per month. It also shows that the average loan term has increased from 68.1 months to 70 months, meaning used car buyers are paying more over longer periods of time.

Expert estimates range broadly. Greg McBride, a senior vice president, chief financial analyst at Bankrate.com, advises that a car payment should **equal no more than 15 percent of your pretax monthly pay**. That means that if you make $50,000 a year, your monthly car payment could be as much as $625.

The bottom line is this: **you can make a down payment as low as $700 if it meets the lender's requirement**, but we suggest putting more money down if possible. If you have your down payment ready to go, but don't have a dealership to work with, we want to help.

So, theoretically, if your salary is $50,000 you could afford a car payment of $430 or less. With a $100,000 salary, you could afford **a mortgage payment of no more than $2,500**. For those with a salary near $30,000 your home, car, and debt combine should be no more than $1,250 per month.

“A typical down payment is usually between 10% and 20% of the total price. On a $12,000 car loan, that would be **between $1,200 and $2,400**. When it comes to the down payment, the more you put down, the better off you will be in the long run because this reduces the amount you will pay for the car in the end.

Dave Ramsey takes a balance sheet approach. Rather than looking at monthly transportation costs, Dave recommends buying **cars that cost no more than 50% of your annual income**. So if you make $50,000 a year, you should not spend more than $25,000 for a car(s).

Whether you're paying cash, leasing, or financing a car, your upper spending limit really shouldn't be a penny more than 35% of your gross annual income. That means if you make $36,000 a year, the car price shouldn't exceed $12,600. Make $60,000, and the **car price should fall below $21,000**.

Auto loans and payments are getting bigger because **the price for all vehicles is rising at a pace** few could have predicted a few years ago. ... For new vehicles, the demand for larger and more expensive SUVs and pickups means buyers are willing to pay more.

**Nothing is too much for a car if you are passionate about it**. You might think of using the 35000 in other useful ways or invest it.

“It's actually a split, but in most cases, **dealers will gladly take your money**. Without getting into the jargon behind it, the time value of money states that money in hand now is worth more than in the future due to inflation. Therefore, a big down payment will usually cause a salesman's eyes to light up.

For used cars, the average price surpassed $25,000, so **10% down** would be $2,500. These down payment amounts can include cash, the value of a trade-in or both.

A $30,000 car, roughly **$600 a month**.

The average monthly payment for a new car rose to **$636 in** Q4 2021, up from $614 in Q3. Rise is due in part to luxury buyers shifting from leasing to financing.