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.
Is 500 a month a high car payment?
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.
How much is a lot for monthly car 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.
Is $800 a month a lot for a car?
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.
Is $400 a month good for car payment?
For example, if you want to keep your new car payment to $400 per month, the dealer might easily get your payments within your budget. 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.
Is $450 too much for a car payment?
You have to look at the overal status of your finances. 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.
Is $700 too much for a car payment?
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.
What is a reasonable monthly payment for a car?
As of 2021, the average monthly car payment in the U.S. is $575 for new vehicles and $430 for used vehicles.
Can I get a car loan if I make 800 a month?
“There are lenders out there that specialize in low-income car loans, but it is very unlikely that you would qualify for any loan with an income of less than $1,000 per month. Your best option is to wait until you start making more money or you save up enough cash to buy a cheap car outright.”
How much is too much for a monthly car payment?
Your total car monthly payment (interest, principal, sales tax, and insurance) should not exceed 10% of your gross monthly income.