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With a three-year $10,000 loan at a 4.5% interest rate, your monthly payments would be **$297 per month** or more if you include the sales tax in the loan.

The monthly payment on a $10,000 loan ranges from **$137 to $1,005**, depending on the APR and how long the loan lasts. For example, if you take out a $10,000 loan for one year with an APR of 36%, your monthly payment will be $1,005.

Pay half your monthly payment every two weeks

That adds up to 13 full payments a year, rather than 12. If you have a 60-month, $10,000 loan, you'll save only about $35 in interest, but you'll repay the loan in **54 months** rather than 60.

“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.

A good starting point is your budget. 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**.

“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.

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.

To calculate your monthly car loan payment by hand, **divide the total loan and interest amount by the loan term (the number of months you have to repay the loan)**. For example, the total interest on a $30,000, 60-month loan at 4% would be $3,150.

- Divide your interest rate by the number of monthly payments per year.
- Multiply the monthly payment by the balance of your loan. ...
- The amount you calculate is the interest rate you will pay for your first month's payment.

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**.

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.

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.

To cut to the chase, it's smart to spend **less than 10% of your monthly take-home pay on your car** payment, so you can keep your total car costs below 15% to 20% of your income. That might leave you feeling you can afford only a beat-up Yugo. But there's an interesting caveat to this rule of thumb.

In general, you should strive to make a down payment of **at least 20%** of a new car's purchase price. For used cars, try for at least 10% down. If you can't afford the recommended amount, put down as much as you can without draining your savings or emergency funds.

What is the minimum down payment for any car loan? As a general rule, you will have to pay a minimum of **10% of the car value** as a down payment. Some lenders/banks offer car loans up to 90% of the on-road price.

- Mileage. According to Edmunds.com, every car has mileage milestones—think of them as big car birthdays. ...
- Wear and Tear, Both Outside and In. If you are a seller looking to fairly price your used car, you know how appraisers at car dealer lots can nickel and dime you.

Some dealers rely on the fact that many car shoppers don't know their own credit score. ... **All it takes is for the dealer to lie to you about your credit score**. After they do a credit check, they don't have to reveal what your score is, they can just tell you that you won't qualify for competitive financing rates.

When you make a really large down payment, say around **50%**, you're going to see your auto loan really change for the better. Making a down payment as large as 50%t not only improves your chances for car loan approval, it also: Reduces interest charges. Gives you a much smaller monthly payment.

According to experts, a car payment is too high if the car payment is **more than 30% of your total income**. ... Make sure your car payment does not exceed 15%-20% of your total income. This will ensure you have enough cash in hand to make payments for other loans, utility bills, and household expenses.

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.

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.

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.