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

With a loan amount of $30,000, an interest rate of 8%, and a loan repayment period of 60-months, your monthly payment is **around $700**. Before you purchase your new vehicle, remember to budget for car maintenance, gas, and car insurance.

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.

For $40,000 loans, monthly payments averagely range **between $900 and $1,000**, depending on the interest rate and loan term. With an interest rate of 6% and a down payment of $2500, your monthly payment for a $450,000 car loan over a term of 72 months will be $7,859 per month.

Your new loan amount would be $25,000, your monthly payment would be **$452**, and you'd pay $2,113 in total interest charges.

For instance, using our loan calculator, if you buy a $20,000 vehicle at 5% APR for 60 months the monthly payment would be **$377.42** and you would pay $2,645.48 in interest.

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**.

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**.

Many financial experts recommend keeping total car costs **below 15% to 20% of your take-home pay**. ... For example, if your monthly paycheck is $3,000, your car payment would be about $300 and you'd plan on spending another $150 on automotive expenses.

“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.

It **can't be stopped** but making a large down payment gives you a cushion between the value of the car and the amount you owe on the loan. If your loan amount is higher than the value of your vehicle, you're in a negative equity position, which can hurt your chances of using your car's value down the road.

An offer of **3-5% over** a dealer's true new car cost is a very acceptable offer when purchasing a new car. Although it's not a huge profit, a dealer will sell a new vehicle for a 3-5% margin any day of the week.

A 700 credit score puts you firmly in the prime range of credit scores, meaning you can get a competitive rate as long as you shop around, **have good income**, and have a solid debt-to-income ratio. A 700 credit score gets an average car loan interest rate of 3% to 6% for new cars and 5% to 9% for used cars.

What Is the Minimum Score Needed to Buy a Car? In general, lenders look for borrowers in the prime range or better, so you will need a score of **661 or higher** to qualify for most conventional car loans.

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.

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.

If you only earn $20,000 a year, it gives you a budget of **$7,000**. That's not a lot, but it's definitely enough to buy an older, yet still reliable, used car. ... That will buy a wide range of brand-new cars, including luxury models.

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.

NerdWallet recommends spending **no more than 10% of your take-home pay on your monthly auto** loan payment. So if your after-tax pay each month is $3,000, you could afford a $300 car payment. It's important to be realistic about how long you can or want to be making this monthly payment.

A representative example of payment terms is as follows: a $1,000 down payment, an Amount Financed of $22,000 with an APR of 10.00%, and a term of 72 months would have a monthly payment of **$407.57**.

Auto loans over 60 months are not the best way to finance a car because, for one thing, they carry higher car loan interest rates. ... Experian reveals that **42.1%** of used-car shoppers are taking 61- to 72-month loans while 23% go even longer, financing between 73 and 84 months.

“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.