What’s the Average Car Payment Per Month?
Posted by SEAbaru@reddit | cars | View on Reddit | 355 comments
I can’t believe the average new car payment is $750. How are people affording this??? I was nauseous at the thought of a ~$300 payment for our new car.
Shmokesshweed@reddit
I paid $807 a month for my Maverick.
Doesn't tell you anything but the fact that I chose that payment lol
With a job. Or lots of negative equity.
Few-Money-5987@reddit
Yeah think of this there are people stuck in 500 a month plus full coverage for 2014, 2015 model cars. They still go 10-15 grand.
10-15 grand for a 2014 2015 Camry, Civic, or ford explorer with over 100 k miles. Those are well over 10 years old.
People dont afford it the second a big repair comes along because these are now old cars . They say screw it , let it get repossesd because they cant afford to fix it.
Ornery_Ask8094@reddit
Hey how did you get 0% on your loan? Thanks
Shmokesshweed@reddit
It was an incentive through Ford. No longer exists.
ancientemblem@reddit
Longer loan terms as well, but if they’re offering me a much lower rate than that of a CD or HYSA I’m going to take it.
Shmokesshweed@reddit
Yup. That's what I did. 29k loan at 0% for 36 months.
broke_saturn@reddit
When I bought my F150 a couple years ago, I took 60 months at 0.9%
I financed about $35k, so it’s $604 month
Shmokesshweed@reddit
Those were the days lol...
m0viestar@reddit
This same offer is running right now....
TheDistantEnd@reddit
Even better, they're offering 0% for up to 60mo.
max_power1000@reddit
To finance $35k on a new F150 (you’re not getting .9% on a used one), you’re bringing at least $10k to the table in cash and trade-in though.
Nephroidofdoom@reddit
I did the same but financed the whole thing, minus deposit. Made it a $900/mo payment, but so what?
Kept the money in my HYSA earning 3-4% instead.
popsicle_of_meat@reddit
That's what seems crazy. $807 sounds like a huge payment. But $29k is NOT an expensive car. In fact, 29k for a new Maverick sounds like a killer deal, haha.
IWantToPlayGame@reddit
Good for you on doing 36 months. It seems like 72+ months has become the norm for so many people.
PickAGodAndPray@reddit
They have 0% financing so 72+ months would be even better than 36 month in their situation.
RammerRod@reddit
96 months....for a vehicle.....that's what they're doing now.
pridetwo@reddit
8 year car loans and 50 year mortgages! What a time to be alive!
Yuuta23@reddit
That one small benefit from 2021 I'm locked in at only 5 percent interest no point to refi
the_lamou@reddit
Exactly. I could have purchased my car in cash. I didn't, because the lease terms were so good that I've actually made ~$60,000 over the last 12 months just by leaving that money in investments. And that's after accounting for interest paid.
clickstops@reddit
Yeah classify by payment is so dumb.
My Maverick was over $550/mo. But it was $22k, I paid 0% interest, put 0 down (bc why put money down when 0% interest?) and paid off in 3 years.
Other people were surprised my cheap truck had the same payment as their nicer truck. But payment doesn’t tell you much.
ChapekElders@reddit
They aren’t affording it. That’s the whole problem. Most people are wildly financially irresponsible. Some of them are here in this post commenting.
Few-Money-5987@reddit
Now if people were being offered good value for their used car purchase. The repo rate would decrease. You are seeing 2014 2015 models still going 10-15 grand . You get a working class person slap 500 payment plus full coverage insurance we are talking 700 minimum to own a 10 plus year old car in a 36 month loan which is normal for 10-15 year old car. Lets not count wear and tear and gas.
Alright 700 minimum total a month to own a 10 -15 year old pile of crap. Then guess what parts and components are also 10-15:years old . So crap is going to break. So you are shelling out repairs big and small on that 700 dollar a month crap box plus gas .
You see why alot of working class say screw it. They basically cant afford a used or new shit box. So its easier for them to go buy a hunk of junk off for 3-4 grand off market place they own outright. Then to make payments for a shitbox from a dealer.
Carvair-98@reddit
With all the talk of these payments, increasing prices of models, and the repo numbers, I wonder if we're seeing a subprime mortgage crisis, but with cars. That isn't to say houses also are in a spot of bother, but you get the point. People love the nice buttons and screens, and the payment plan the nice guy at the dealership was able to get them :) Paying up is always 30 days away, that's plenty.
If people really wanted new affordable cars, there are still several good options. K4, Corolla, Versa, Sentra, Elantra, Trax, Venue, hell even the Maverick for truck people. You just need to be willing to sacrifice a few creature comforts, maybe, and be willing to downsize a little bit. This is not hard people, you just have to be aware of what the hell you're spending your money on.
Weak-Specific-6599@reddit
Or just buy used. More people buying used vehicles will draw down the new car market.
Glad_Manufacturer673@reddit
My landlord just randomly increased my rent by $400, so yeah, I wouldn't be able to afford a used car payment either lol.
Raveen396@reddit
There's rumblings of a subprime car loan bubble, but cars are much easier to repossess and resell than homes and the auto industry is significantly smaller than the mortgage industry, so it's less likely to trigger a widespread financial meltdown.
For reference, the mortgage market has something like $20T while auto loans are less than $2T. Big enough to cause some issues, but probably not global meltdown levels.
dont_ama_73@reddit
Some of us can afford those payments and more. Throw in crazy low or zero interest rates, and it just makes sense to not pay cash.
ChapekElders@reddit
Very few people are in a position where a $1000/mo car payment could be considered financially responsible. If you’re one of them that’s great but it’s a small percentage. So you can bet most of the people on here admitting to their ridiculous loans are probably irresponsible.
privatejetvillain-@reddit
"I'm broke therefore everyone else is". There are 6.6 million people in the United States who earn over $250,000 per year. A shit ton of people can afford $1,000 per month.
ChapekElders@reddit
I’m just be of those people lmao.
privatejetvillain-@reddit
If you can’t swing it, you also have a lot of “financially irresponsible” aka unnecessary, personal lifestyle choices that prevent you from affording the also unnecessary $1,000 per month car. You simply value different things than they do, but you consider your personal choices superior.
ChapekElders@reddit
That was addressing your stupid comment suggesting that I’m broke and therefore think everyone else is.
Fact is most people aren’t saving much at all regardless of income and financing depreciating assets is, in general, not a great practice.
verdegrrl@reddit
No insults. Thanks
GimmeChickenBlasters@reddit
Tons of people are. 10% of US individuals earn $150k+ annually. That's 34.8 million people. https://dqydj.com/income-percentile-calculator/
ChapekElders@reddit
I wouldn’t call a small fraction of the population a ton of people.
GimmeChickenBlasters@reddit
Is that because you don't know how percentages work?
10% of 1 billion is 100 million
100% 10 million is 10 million.
Small percentages of a large population can be significantly more than large percentages of a small population.
ChapekElders@reddit
When I say something like “very few people” that’s obviously relative to the size of the subject population. 10% is a small part of a large population. It’s still millions of people sure but that’s not exactly the point.
privatejetvillain-@reddit
Everyone has “unnecessary” expenses for some it’s eating out at nice restaurants, nice vacations; for others it’s cars and yes multiple kids. None are necessary. Your waste of money isn’t any better than theirs. Spend on what you like and let others do the same.
ChapekElders@reddit
I didn’t stop anyone from doing anything. Don’t get so riled up.
GimmeChickenBlasters@reddit
When I say "is that because you don't know how percentages work" I mean you don't know how numbers in general work. There's no shortage of people who can afford $1k payments.
ChapekElders@reddit
Oof going the condescending route is pretty lame. Not sure why you have to be so hostile and attempt to insult my intelligence. I’m pretty aware of how percentages and large numbers work lmao.
GimmeChickenBlasters@reddit
Oof, can't back up your claims so you resort to "how could you say that?!" So yea, unintelligent and pathetic.
ChapekElders@reddit
I’m really unsure why you took the hostile angle in this. You seem like a miserable person.
SyntheticOne@reddit
Don't forget to add in depreciation!
Depreciation of a new vehicle accounts for just about double the car and insurance payment for most buyers. Depreciation rate drops as the vehicle ages.
TP_Crisis_2020@reddit
Some of us can easily afford our $700/month car payment..
ChapekElders@reddit
No shit man
Chrodesk@reddit
the repossession rate is climbing, but still around 2.3%... and that includes a lot of used car loans.
even so... Id say 97.7% of people are affording it.
ChapekElders@reddit
Yeah they’re “affording” it. Likely at the expense of longer term thinking for their future.
Chrodesk@reddit
you could say that about absolutely every non-essential purchase...
ChapekElders@reddit
Of course you can but, other than a house, which notably doesn’t typically depreciate, a car is the single largest purchase most people make by orders of magnitude.
Chrodesk@reddit
we all waste money in different ways.
ChapekElders@reddit
See previous comment
BigSnackStove@reddit
I have always bought every car so far cash, even my M2 that was $40K and I've just been showered by people saying it's dumb and they all say the same thing.
It's the exact same mindset people have that finance cars in general, they want a car they cannot afford, they finance the car and tell everyone else they financed it because they have "the rest of their money" invested in the stock market. So that money will grow more than what the interest on the car loan is.
EVERY, SINGLE, ONE says this, like parrots, and let me tell you, there aint any god damn money in any stock market, they're just buying something they cannot afford and are trying desperately to make the purchase seem not that bad.
ChapekElders@reddit
I mean you’re pretty wrong about that though. When interest rates were better in the US, it was stupid not to finance a car because returns in our stock market are quite good. Are people using the combo to justify and buy cars they can’t afford? Absolutely! But the strategy is valid and smart when done properly.
BigSnackStove@reddit
First thing, there is a whole world outside the US. Rates, taxes and loan structures are very different depending on where you live. A strategy that can work in one country does not automatically make sense everywhere else.
And what you just wrote is kind of the point I was trying to highlight. People love to say they have money sitting in the market and that this is why they finance the car. In practice, what usually happens is that the loan frees up money, and that money gets spent on something else instead of actually being invested or used to pay down the car. Then they end up with a loan, a more expensive lifestyle than they can handle, and nothing set aside.
If you simply buy what you can afford up front, you remove the temptation to shuffle money around and justify bigger purchases. It keeps things simple and honest with yourself.
ChapekElders@reddit
Obviously there is a whole world outside the US. But this site and sub are very US centric due to the user base. Additionally, financing as a concept exists basically everywhere. Math is still a thing and mathematically in many places it can make a lot of sense to finance a car.
BigSnackStove@reddit
Financing exists everywhere obviously but the clean math people use in these arguments rarely matches what actually happens. Outside the US the loan terms, taxes and costs can look very different, so the numbers are not always in favor of financing. And in the US, car financing is extremely common, which is why so many people end up buried in long loans and rolling debt from one car to the next. There is a reason I see a post here a couple times during the year about Americans car debt, but the problem is obviously not only in America, it's everywhere.
What I was saying about behavior is the real issue. People claim they finance because they are investing the rest, but that money almost never gets invested. Once the loan is there, it gets spent on something else. Then they are stuck with the payment and none of the upside the math was based on.
Buying within your real budget avoids that cycle completely.
ChapekElders@reddit
Citation needed
BigSnackStove@reddit
Around 80 to 85 percent of new cars in the US are financed. Source: https://frontiergroup.org/resources/driving-debt/
Americans now hold over 1.6 trillion dollars in auto loan debt. Source: https://www.lendingtree.com/auto/debt-statistics/
The average new car payment is around 740 to 750 dollars a month. Source: https://www.consumeraffairs.com/finance/auto-loan-debt-statistics.html
A recent study found that about one in four trade ins had negative equity, meaning people were rolling old debt into the next loan. Source: https://www.globenewswire.com/news-release/2025/01/16/3010860/0/en/Car-Loan-Trouble-The-Average-Amount-Owed-on-Upside-Down-Auto-Loans-Hits-an-All-Time-High-in-Q4-2024-According-to-Edmunds.html
If people were truly investing the spare money instead of spending it you would not see this level of debt, negative equity and long loan chains. The behavior shown in the data does not match the story people tell about financing to invest the rest.
Obviosly there are alot of people that actually finance and invest the difference, those people exist, but the majority simply does not do this, and that is what I've been trying to say the whole time...
ChapekElders@reddit
A vast majority of people aren’t using the logic we’re talking about. They aren’t over financing cars to keep investments. They have no investments beyond maybe equity in a house and a couple weak retirement accounts.
BigSnackStove@reddit
That is exactly my point. People keep repeating the logic as if it is common practice, but in reality most borrowers are not using financing to keep more money invested. They are just taking on another loan.
ChapekElders@reddit
If you go back all I said was that financing is valid and can be done properly.
BigSnackStove@reddit
We're going in circles, obviously WE BOTH understand financing is valid and can be done properly.
The issue is that the majority of those cases are done just because you buy something you cannot afford, not because you are smart with your finances. It's what this conversation has been about from the start..........
TaskForceCausality@reddit
Bingo. Given this is r/cars, there will be a high number of $1000+ payment folks here. Which is their business. But it’s worth noting that financing cars is a social norm in the U.S., and most people are shockingly uneducated on the process.
Someone who walks into a BMW store aware they’re paying $1000 a month /7 years for an M4 is operating at a different place versus a mom with a busted minivan that’s -$10,000 upside down and drives off a Kia lot paying the same terms for a used Optima.
Less-Amount-1616@reddit
>Given this is r/cars, there will be a high number of $1000+ payment folks here. Which is their business
It's their business but I can also point out that's generally wildly financially irresponsible. People can do silly things and I can point that out and we can go on our merry way.
Intel_Oil@reddit
It always depends. Buying a Taycan cash for example makes no sense when i can get a lease at 0.9% interest and the rest of my money can work somewhere else, outpacing the interest 6-fold.
Less-Amount-1616@reddit
>Buying a Taycan cash for example makes no sense when
Does buying a Taycan make sense at all in the first place? I'm speaking only generally here.
Intel_Oil@reddit
I guess "making sense" leaves space for definition, financially it would make sense to buy a Prius and be done with it, wearing a single jeans until it rips irrepairable.
What i wanted to imply is, if you want a Taycan as an example, it makes no sense with the financing options i've used as an example, to buy cash.
Now if you ask if the Taycan made sense for me personally, no absolutely not and i'm very happy its gone soon and replaced by somewith with an engine.
privatejetvillain-@reddit
I have several cars, and two of them are financed. The highest payment is $7,000 a month. Yet I routinely find myself being lectured about “financial irresponsibility” by the low wage. I’m sorry, but I don’t take financial advice from people who are broke. If you’re so much better with money, why don’t you have any?
Weak-Specific-6599@reddit
How do you know who is broke?
Less-Amount-1616@reddit
I do though. Also why I use the term "generally" in describing "wildly financially irresponsible".
2001em2@reddit
We're paying over $1000/month, but I put down 50% and only got a 24-month loan to get a better rate. Definitely not the norm.
Mojave_Idiot@reddit
Also in this category
Zappiticas@reddit
Kinda funny but I would expect the opposite for /r/cars. I’d say most of us don’t have payments because we all drive old shitboxes that we spend way too much on.
somedude456@reddit
It's almost like I can browse /r/cars and learn the average car payment is $750 or so, hit up /r/apple and see the new iphone is $1,600, and then browse /r/askreddit to see the question of "why are the number of youths buying homes at a record low?"
the_lamou@reddit
Not really, though. Most people aren't buying new cars. The average age for a new car buyer is fairly high, and significantly higher than the average age on Reddit. Most people buy used and drive the car for a long while. The new car market is a small fraction of the overall US car market.
neverfakemaplesyrup@reddit
Yeah. Idk where folk have been, the news just covered several subprime nontraditional automotive lenders going under, and the Roman Report additionally just covered the context of the congressional hearing on how prices got so inflated for shitty cars
Intel_Oil@reddit
I feel seen by you.
xlb250@reddit
$925/month + $500/month
It’s just a lifestyle choice. I don’t spend money on vacations, no kids, etc. Do I feel the iX is worth double the cost… yes absolutely.
Less-Amount-1616@reddit
>no kids
Not a great lifestyle choice, but you do you.
Zestyclose-Kick-7388@reddit
Mannn just wanted to come here 132 days later and say shut up
WarCrimeGaming@reddit
The only thing I do besides playing around with my cars is collect smaller diecast cars, video games, the gym, and collecting sneakers.
bc10551@reddit
Lemme introduce you to this little thing called watches
Bonerchill@reddit
I like watches but a decent watch starts at the same price as a good set of wheels.
Why would I have a watch when I can have another set of wheels?
Intel_Oil@reddit
It goes Tick, Tick, Tick, Tick, Tick
Bonerchill@reddit
Who cares?
What’s the difference between a 1960s Grand Prix I paid $130 for in Shenzhen and a $3000 Tudor, other than the fact the Tudor is worse-looking and keeps slightly better time?
Intel_Oil@reddit
I care. I love humans and especially their achievements in everything mechanical.
Owning a piece of human heritage in the craftmanship and precision that is required to built an analog watch like a IWC Portofino with Moon Calendar.
You’re wearing a piece of horological history, not just a timekeeper.
It becomes a personal piece of identity and a lifelong companion, not just an item. I'm a sucker for wheels, but my IWC is my Companion for far longer than any Car in my Garage (i bought it to reward myself for my Graduation from my Job Apprenticeship).
It’s a quiet signal of success not a loud status symbol, as cars are often damned to be.
limitz@reddit
Watches hold value better than cars.
I never want to buy a nice car again, would rather put that into a watch instead.
woodsides@reddit
Are you trying to bankrupt him or something?
V8-Turbo-Hybrid@reddit
It’s no different with diecast and video game. In diecast, some are costly. r/Hotwheels is a good example. In Video game, it can charge your money for some features.
SoyMurcielago@reddit
On a dollar per hour basis gaming is dirt cheap
If a game is lets say $60 (i know going up still…) but its something you love and infinitely replayable or open ended or whatever and you get minimum 60 hours youve spent a dollar/hr
A movie in a theater is lets say $20 for a prime time showing on friday night for one. Two people (date night) is $40.
Lets say that movie is 2 hours. You have spent $20 per hour.
Gaming is far more cost effective THE MORE HOURS YOU PLAY THAT GAME
Therefore i have made a financial case to justify gaming instead of the latest movie releases lmao
(I know im not telling you something you didnt already know u/v8-turbo-hybrid its just funny to actually type it out)
gtobiast13@reddit
Get this man some links so we can get him chuffed to bits.
Ok, ciao!
Intel_Oil@reddit
Have you ever thought about a portafilter coffee machine?
angrybluechair@reddit
I'm working on a GR86 and Honda Prelude Tamiya kit right now, just working on the colour scheme and the go fast stripes design.
I don't go on holidays or spend money on eating out and I'm simply focused on getting either a GR86 or GR Yaris or waiting until Toyota releases sone new car like a SFR or other relatively affordable sports.
khazixian@reddit
>no expensive hobbies
>owns a bmw
kek
OnionTaster@reddit
Wait so they reject all of that for a... car ?
StockAL3Xj@reddit
Sure but a lot of people are choosing a lifestyle that they really can't afford.
netsurfer79@reddit
I pay less than $250 for my 2015. I had to refinance twice but got locked into a low interest rate payment now
OldAerie4296@reddit
Wow I pay $388/mo. There’s no way I’d spend $700+ for a car payment, some of these comments are insane
SirAsagrim@reddit
Got a 2025 vehicle with 14 miles on it from a dealership. Made em take off the service agreement they snuck in. 520 a month. I wouldn't budge another cent honestly. When I was younger $500 a month was the nicest car on the street, now 500 a month is going to get you a $20,000 or $30,000 car. Go with a dependable gas saver, sign 72 pay off in 36.
Ok-Business2680@reddit
Lots of people do not understand the math involved when buying. They think as long as payment is less than paycheques they are ok.
I have seen people pay $88k for a new Kona because they only looked at monthly payment.
timsayscalmdown@reddit
Bingo. It's the only part of the math they can conceptualize.
IWantToPlayGame@reddit
This is very true.
I find it weird I’m agreeing with someone who thought it was a good idea to buy a Maserati.
StockAL3Xj@reddit
I find it weird to talk about good ideas when you have chose to buy one of the worst cars in terms of depreciation.
IWantToPlayGame@reddit
It's the best commuter car and I severely bought below my means; I could have bought a much nicer car. So the depreciation on this $40K car is minuscule.
My time is valuable. A Maserati that needs constant attention/might not start tomorrow morning is far worse than the 'depreciation' of the Model 3.
You and I think different.
IditarodDays@reddit
I’m just curious, and not hating by any means.
My father bought his model 3 new back in 2023. He explained to me that the reason he didn’t buy used was because of potential hidden issues in the car and a lack of warranty for peace of mind.
I was wondering if that was your similar thought process? Or was there a different reason that made you consider buying new instead of used?
IWantToPlayGame@reddit
I bought new for a few reasons.
I like getting exactly what I want. Color combo, wheels, etc. I also like the process of buying new; it's SO easy. Dealing with a private party or used car dealer is a hassle. Buying new also gives me peace of mind. Lastly, I can easily afford it, so why not?
IditarodDays@reddit
Makes sense. Thanks (:
Ok-Business2680@reddit
I find it funny. This is like the "car person" equivalent opinion to high monthly payments.
Spa_5_Fitness_Camp@reddit
Dealers are very at fault here too. They simply will not use the total cost when you buy. I straight up walked out after a salesman spent 2 hours with me because he simply would not stop referring to the monthly payment instead of the cost of the car, even after repeated requests. Doing that is how they get people to buy more expensive cars than they realize, and pay the dealer more in interest than they realize. It should be criminal, because it's sure as hell intentional and predatory.
ice445@reddit
The actual monthly payment is just one part of the story. Total purchase price and loan term matter more in the grand scheme of things. Although I don't doubt many people are spending more than they *should* cars are typically more reliable and last longer now so it's not the worst way to waste one's money. I personally don't do more than 36 month terms with a decent downpayment (10k+), but with modern car prices and recent interest rates, that still leaves you with a fairly hefty payment. The only way to get lower is to either have a huge downpayment, or extend the term to some ridiculous length. 76 or 84 month loans are the real predator in the room with how much interest charges rack up if you follow it through....
theBdub22@reddit
Or to get a lower payment you could buy a cheaper vehicle 🤔
Fools out here buying loaded Denalis when a CPO mid-trim Silverado can perform the same job.
dwntwnleroybrwn@reddit
Don't forget how many of them are rolling equity into that new loan too. It's way to common for people's previous 72 month car to die and still have a balance they are rolling over.
ahorrribledrummer@reddit
Someone on the accord subreddit recently was asking about their loan. They'll be paying about $45k for a mid-trim used accord.
RecentGas@reddit
Jfc some people really are financially illiterate.
I'd personally love to get a newer vehicle than what I currently have, but my 2017 civic is still humming along nicely, and it's been paid off for years.
I just can't stomach the thought of a car payment.
timsayscalmdown@reddit
That's why the monthly payment is the headline; it's the only metric or number that a lot of people can make sense of. "If I can afford this payment, we're good" without any regard for long term ramifications.
ahorrribledrummer@reddit
Yea it's wild. Late model (post ~2010ish) cars are so nice in their quality and comfort that there's hardly reason to trade as long as they're reliable.
Buying a car for an upgrade I can get...it feels nice to drive something that looks cool and feels fresh. However, doing so at the sacrifice of your financial well-being is far beyond my level of comfort.
clickstops@reddit
Less common that they did and they just want something newer.
anonymouswan1@reddit
They dont carry mid trims on the lot. They almost always only have loaded vehicles only. You have to search high and low for something without options
perennialpurist@reddit
That’s not true anymore but was certainly the case during the peak COVID shortages. Most makes/models for both cars and trucks have plenty of lower and mid trims available now if you look.
max_power1000@reddit
A CPO mid trim Silverado is still going to be around $40k. If you don’t have a significant down payment or trade-in that’s every bit of an $800 payment if not closer to $900 on a 5 year note especially after tax, tag, and title plus dealer fees.
Granted it’s still half what a new Denali costs.
woodsides@reddit
Yeah the more important stats are average loan term, interest rate and final OTD price. You can play around with those numbers a lot to get your desired "monthly price".
300/month for a 50k+ car means you're getting fucked over down the line. You're basically only paying interest for your first few years of payments.
Nephroidofdoom@reddit
It definitely goes both ways. Bought my last car in 2021 with almost no money down, and financed at 0.99% for 60mos. Payment is almost $900/mo which is eye watering to look at.
But overall feels like a good move as I was originally prepared to pay cash for the whole thing and invested that money instead.
Distinct-Reach5928@reddit
How many people can pay cash for a car though, glad you can but not the norm
acEightyThrees@reddit
You made out like a bandit with that loan. 0.99% is so far under inflation over the last 4 years, they're basically paying you at this point. Nice job.
Nephroidofdoom@reddit
Yeah. Feel pretty blessed. I bought my house around that time and locked in at 3.25% fixed mortgage as well.
So much of everything is just luck and timing.
acEightyThrees@reddit
Thanks! It was my dream car for 20 years, since the first one came out. I was fortunate to be in a position to order one back in 2021. It's still my idea of the ultimate one-car garage, but I'm starting to wonder if a 2-car solution is better. Something more comfortable and economical for the daily, and something like your Boxster for a fun car. We'll see what happens.
donbeattie@reddit
Slippery slope... Fun car 911, daily car Tacoma Pro which transformed into fun off-road car, need small SUV for comfort and economy... 7 cars later... I'd stick with the RS6 Avant, wicked sweet car.
Reddit-mods-R-mean@reddit
I got a 21 Camaro LT1 6mt and a 22 wrangler 6mt. The two car approach is not all it’s cracked up to be.
They both suck significantly in different ways, I feel like I went too far apart on the spectrum. Many days I wish I had just one automatic AWD sporty 4 door sedan.
I used to have a 19 wrx 6mt and honestly that car was so garbage and going manual was a mistake but it was convenient to just hop in and scoot regardless of the weather.
FMJoey325@reddit
Simply get three cars, lol. I have an old Subaru legacy I daily around and use in the winter. Got it pre Covid for like $3500.
Nephroidofdoom@reddit
Enjoy it!
As a former M5 owner, my current Boxster + F-150 setup was intentionally splitting that one car into its two extremes.
Specialist-Size9368@reddit
Bought my truck *only car i own that wasn't cash* in 21 because 0 percent for 84 months. I put no money down. I rolled the taxes into the loan. My payment is 428 a month which I easily afford. Hell i got 2500 off sticker at the time. I did not need another vehicle at the time. I however had excellent credit and thought it would be stupid to not upgrade my beater truck to something reliable. Worked so well i sold my Fiat Abarth because caravana paid me what i paid for it new after 18 months of ownership.
eneka@reddit
Haha same here. 0.9 for 60 months on our Acura RDX. Plus $5k off msrp. Just rolled the whole thing into the loan, signed and drive lmao
eneka@reddit
Same here, was somehow able to get our Acura RDX $6k under MSRP and 0.9% apr during 2021 when everything was low on stock.
myles442@reddit
You got very lucky with that interest rate. Rates now are about 12%.
ChaosBerserker666@reddit
My payment was eye watering. $2668 a month for 18 months. But I paid off the car in that time, and I also put down a huge down payment too.
Intrepid_Elk_4351@reddit
Depends on how much you put down. I tend to put 30%-50% down, finance the rest...keep payments under $600. Keep years down also...and don't run into negative equity situations.
You don't "need" a $50k auto...you just want one.
armchairracer@reddit
I'm also curious what the average income for new car buyers is. $750/no is much more doable at $100k/yr than $50k/yr.
9e78@reddit
I ordered my M2 when I was making a little over $60k by the time it arrived I was around $80k. My payments are $750 and were easily doable. Im now making $150k and the payments are hardly noticeable at this point.
Bicycle_Dude_555@reddit
The greatest percentage of my income that I ever spent on car was about 25% of my annual income when I was a junior engineer - $8400 car on $46,000 salary. I bought a used M3 Lightweight for $29,000 when I made $125,000. Now married with both of us earning much more our family cars over the last 20 years of marriage have cost $17,000, $15,000, $19,000 (only new car), then most recently $15,000 - under 10%.
xarune@reddit
A quick google search shows it at $115k/yr household income in 2023. It doesn't specicy median or mean, but these are typically median. The median age is ofter somewhere around 55 too, so people with well established careers, at the peak of their earning, and often with more savings.
Only like 10% of people are buying new cars, and while this sub does love to dunk on people in way over their heads, the reality is a lot of new car buyers can afford them.
sc0lm00@reddit
Not necessarily. There are so many factors to auto loans that you can't just lump it all together to one base like monthly payment. I financed my last car for 6 years but the interest rate was so low and the price I got it for was so good it's worth basically 4-5k less than I bought it for 6 years ago.
My wife just bought a fancy SUV after having her last car paid off for several years. Her payment is about about what the article lists which I wasn't a fan of but it will be paid off in 5 years and we put 25k down so we won't be underwater on it. It's all about your budget and what makes sense for you. The mileage you drive is also a consideration. We don't put many miles on our vehicles.
Innocent-Bystander94@reddit
Don’t forget the insurance. You’ll need comprehensive insurance and GAP insurance. You can add about $3-400 a month on top of the monthly cost of the car.
Emotional_Bottle_699@reddit
What? No insurance for full coverage on my Audi S5 is140$ a month...
Mojave_Idiot@reddit
Varies widely state to state.
Emotional_Bottle_699@reddit
Damn... in in PA if that matters
NotoriousCFR@reddit
I'm in New York and I pay $2100/6mo for full coverage on my two vehicles.
I couldn't figure out what the hell was so wrong with me that my insurance is so expensive - I'm out of the "young and dumb" age bracket, I'm not driving crazy valuable shit, I have one minor speeding ticket that's about 3 years old but honestly it had zero effect on my premiums when it first hit.
A new coworker just moved here from PA this year and said that her car insurance increased multiple times over just from moving states. That more or less solved the mystery.
GimmeChickenBlasters@reddit
$300-400 in insurance for an economy car? How many DUI's do you have?
Innocent-Bystander94@reddit
I’m in Canada. It’s really that expensive here
Mojave_Idiot@reddit
Might just live in southern Louisiana.
bluepied@reddit
Lol no. Who’s paying $300-$400 a month for insurance?? I pay $60/month for full coverage on a new $65k car. GAP insurance is for suckers that can’t afford to drive the car off the lot in the first place and got outsold by an F&I guy!
AllTearGasNoBreaks@reddit
That's really cheap insurance. For our 3 cars, we pay $3400/yr.
trustjosephs@reddit
"more reliable and last longer" that's great if we're keeping cars at least 10 years, but a lot of us trade in after just a few years because we need that new shiny thing.
a_tiger_of-Triumph@reddit
Ive been saying the same thing! My goal with my current vehicle is to keep so long that I could register it as a classic while still being the first owner.
Useful-ldiot@reddit
76 month loans aren't a problem if you get a better rate as a result.
I always negotiate a lower total cost with a longer term and then I pay it off in a standard 4 year term so none of the interest builds up. It's important to clarify there is no fee for paying off early.
max_power1000@reddit
76 month loans almost never have a better rate, even if they’re manufacturer promos. The extended term is higher risk for the bank, and the rate reflects that.
Camburglar13@reddit
I have a 0% 7 year loan. I could’ve paid it off faster but why bother?
JagaloonJack@reddit
VW credit was doing 0% for 60 months when I bought my GTI back in 2020
Littleboof18@reddit
I wish I was in my position I am now in 2020. I really want a GTI, but I just don’t think it’s a smart decision now.
Camburglar13@reddit
Yeah mine was 2020 also. Hyundai
ManufacturerBest2758@reddit
That’s such an insane deal lol, literally a financial asset
Camburglar13@reddit
Yep. I hate having a car loan and would like it to be gone but I’m not paying 0% off faster. That money can work harder elsewhere
dacoovinator@reddit
No it’s literally the biggest waste of money for the vast majority of Americans. Almost nobody is buying a new car and trading it in 15 years later. They’re buying a new car, and then going in and getting a new car a couple years later when they can afford a couple hundred more/month.
Less-Amount-1616@reddit
>76 or 84 month loans are the real predator in the room
Right, it wasn't too long ago that 36 months was pretty standard. That's ballooned out. Apparently a lot of poor people are bad and math and also really only think about costs in terms of monthly payments.
IMI4tth3w@reddit
I purchased my model y at 0.99% interest 0 down and 7 year loan. Payment is $680/mo. No regrets and the car is amazing. It also helps when you have income to support it. My mortgage is also only $1600/mo which is about 15% my monthly income. It want always that way but my income has grown quite a bit in the last 7 years since we purchased.
Thrillsteam@reddit
One thing is the price of a car is too expensive now . If you buy a 50k car at 0% you are going to be paying 833. But we all know 0% is hard to get now. I remember having a 970 dollar car payment . I got it because I had fair credit. I needed the car because I travel a lot . But what I did was I increased my credit and refinanced. Those payments were cut in half per month after refinancing
Moist-Pumpkin3997@reddit
The better question is how did you get a $300 payment? The only ways I see that happening is by having alot of equity in your trade in and/or down payment. Down payments lower your payment but your simply paying ahead a large portion of the monthly price.
ComfortableRegion790@reddit
OMG what is wrong with people. Here I am disgusted by $750+ car payments. I have a 2017 Chevy Colorado Zr2 with 140k miles and finishing off a loan at $417 a month. There's no way I'm willing to pay more than $500 a month for a vehicle payment. Crazy
andreayang18@reddit
Makes me feel better about financing a 2013 Mazda for 165/month for 60 months today. I put about 50% of its total price down, $5k. Hoping to pay off the rest by 2027 though and made sure there’d be no penalty for paying it off early before signing anything.
Training-Expert5598@reddit
My ex wife pays $1000 per month on her TRX. I loved that truck, but not THAT much.
aaffpp@reddit
Blame a school system that does not promote mathematics and critical thinking. Corporations love it...
Admirable_Jacket8393@reddit
I was paying £600~ PM for 4 years for my Yaris GR. Just paid the balloon payment of £13k on the 1st of December... I think I got a fairly decent deal tbh.
IditarodDays@reddit
The Car Market in the U.S. is so backwards they stopped selling small cars like the Toyota Yaris, Dodge Dart, among many others.
For the average American, the day of the affordable sedan are gone.
All caused by a combination of regulation loopholes on SUVs and Trucks and a culture of materialism and country.
I know what I’m saying isn’t applicable to you, but your mention of the Yaris reminder me of that.
Congrats on the new car by the way. If I had to buy any gas car, I’d probably get that one if I could.
Admirable_Jacket8393@reddit
My previous car was the model of fiesta ST that they sold in the US, the 2013-2017~ model and it was a great hot hatch.
They sold thousands in the UK and Europe, I still see loads of them around. I do however see why perhaps they don't suit the US roads, here we're almost spoilt with country lanes to throw agile little cars around on.
Mumei451@reddit
I dread buying a new car.
Especially since I want something cool.
I heard the average price of a new car is now $50k. My next car payment is almost guaranteed to be $700+. Sucks, but it is what it is.
Things aren't ever going to return to what we consider "normal" pricing.
Coezar@reddit
Everything is expensive now. Used cars are not the cheap deals, and a good% off, as they used to be. I got a new Integra due to USED and new civics being almost the same price or more, but this was during the covid shortages and “market adjustments” getting slapped on everything.
Unfortunately this is the new normal, as bad as it seems. In the US, cars are a requirement for most, as not all major cities have decent accessible public transportation.
NotoriousCFR@reddit
Spending $50k+ on a new vehicle is not just "stuff is more expensive now", it's very much a consumer choice.
I have a Subaru dealer, VW dealer, Nissan dealer, Hyundai dealer, all within a 20 minute drive from my house. I could go to any one of those dealers and pick up a perfectly serviceable, fairly well-appointed brand-new car (sedan or crossover) for $30k or less, and drive it home today (well, tomorrow, since it's 11:30pm at the moment).
What inflation and rising prices have done is effectively killed the sub-$20k market, turned $30k into the new $20k, and turned the used market into a complete mess. There is no doubt that this is a squeeze on consumers with less income/less money. But I wish people would stop acting like cars under $50k just don't exist any more, that isn't true at all.
IS-2-OP@reddit
That’s kinda just a Toyota Honda thing. Most other brand are depreciating nicely. The only car right now that I would expect to be dropping and isn’t is S550 Mustang GTs.
Mumei451@reddit
Yeah, mass transportation is an absolute joke here.
The closest I could get to my job by anything but a car is like 3 miles. I live in a really populated area too and it's still basically impossible to not have a car.
Not to mention, mass transportation takes a huge amount more time verses having a car. My friend, who has access to close trains into NYC, can still get there and back significantly faster than riding the rails.
Busy_Proof9935@reddit
Thank you MAGA where there mission is to bankrupt America and give to Israel to commit genocide on 14 year olds
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NotoriousCFR@reddit
My minimum payment is about $450 but most months I've been putting in about $750-950 extra toward principal (so like $1200-1400 total). I'm set to pay off what was originally written as a 75-month, in 28 months. The fact that I will be payment-free that much quicker, and will have $1000+ extra in the budget to play with (/save) sooner rather than later, is the motivation to divert extra funds toward payments.
Of course, I have a much more reasonable minimum payment to fall back on if I have a bad month/unexpected expenses, and it's also a very temporary pain. People who have 4-figure minimum payments for 72+ months are a whole other story...even if you make decent money I can't imagine how that wouldn't stress you out constantly.
IBIKEONSIDEWALKS@reddit
Its crazy to think ive had a car for a few years with a total investment of 3-4mo the average monthly payment
dayvieee@reddit
I only pay $400/month! (For 120 months at 7%) see how silly these articles are?
Actraiser87@reddit
People love their luxury trucks and SUVs, along with the massive payments.
Raptorchris1@reddit
$750/month for 5 years is only $45,000, and that's at 0% interest, which doesn't exist any more. That's arguably below the cost of any new small/mid sized SUV or truck, or average size well equipped sedan. That's just what things cost nowadays. $300/month for 5 years is only $18,000 at 0% interest. You'd be hard pressed to find a nice used car with 100k miles for that price.
MartialBob@reddit
A lot of people are financially illiterate. If the finance guy at the dealership says something like "you can afford this" a lot of people won't question their motives. I live in a strictly middle class town and yet I've seen a Mercedes Benz AMG C43 parked a few blocks from my home. This isn't some il advised used car either. It's one of their new ones.
WarCrimeGaming@reddit
That’s more than I’m paying for my Supra btw. Let’s remove the wealthy folks and people stretching themselves out first, I think a lot of people don’t factor in those that don’t have many bills. One of my buddies has an RS3 but his family all still live together in a duplex that has like 3 bedrooms on each side I think. House is owned by them.
gtobiast13@reddit
Yep, understanding discretionary income for the gainfully employed but not wealthy gets weird once you start taking obligations into effect. A new couple making a combined $100k with no auto / school / mortgage loans and only has rent and general life upkeep has way more fun money than an established couple making combined $225k with a mortgage (plus house upkeep), 2 car loans, and 3 kids.
I‘ve got friends on single house incomes with moderate but not high incomes dropping otherwise laughably irresponsible amounts of cash on fun things like cars but they’re limited to rent and utilities so it works.
IS-2-OP@reddit
Me and my girlfriend are discovering this lol. We have rent and I have my car note and that’s it. Combined income above 150K a year at 23 years old. People think I’m dumb for having a 30K car but it’s not that insane for me really.
WarCrimeGaming@reddit
I don’t see how a $30k car is dumb, that’s like mid spec Camry money
IS-2-OP@reddit
I agree but people see young man BMW coupe and think I’m stup.
TheAbdominal_Snowman@reddit
They might think it's expensive because of the badge. People see a late model German car and think fancy/expensive, when in fact many full-size pickups would cost more and not stand out to them.
t001_t1m3@reddit
I had a beat up 328i worth $3,500 when I worked at a supermarket and I was considered rich by people driving $50,000 ‘work’ trucks
TheDoct0rx@reddit
What was the terms of your loan for the Supra?
WarCrimeGaming@reddit
$68.5 out the door, $15,000 down, $28,000 trade in, 48 months at 4.3% interest
TheDoct0rx@reddit
ah okay, 43k down basically makes it a much more manageable payment
WarCrimeGaming@reddit
Yeah I know thats a whole lot for a down payment but I kinda saved up for it
TheDoct0rx@reddit
Understandable, I want one too and at current rates I need to do a lot of saving for it to make sense
Weak-Specific-6599@reddit
Yeah. This is why I will forever buy used cars. If cars didn’t depreciate so badly, I’d probably reconsider it, but since the vast majority of people want to trade in their perfectly fine 3-4 year old car for less than 50% of what they paid for it, I am happy to grab a decent deal.
myles442@reddit
Used car and new car has different interest rates. But even buying a new car with half the interest rate, you’re also paying a premium for a new car so really is it any cheaper? I feel people only do it for the cheaper monthly payment but it’s bad at the end when you have lots of negative equity
InitiativePurple2894@reddit
275 total here for 2 used cars. 455 if we count insurance
Chrodesk@reddit
anyoneone that earns just $5000 more than you can afford that $700 car payment all else equal.
Is that really so hard to fathom that people earn $5000 more than you? unless youre a super high earner.
Johnthegaptist@reddit
People always skip over the most obvious answer. There are a ton of people in the US that can afford expensive cars. Approx ~16 million new cars sold, approx 131 million households in the US. That means 12% of households bought a new car. For the most part thats going to skew towards the higher income brackets. Just for the record, to crack the top 12% of household incomes, you need to make $240k/yr.
If you go buy the 10% rule of thumb, that works out to households making $125k+ being able to afford a $750/mo payment. There's like 45 million households in the US that meet that criteria.
TLDR: There's a ton of people in the US that can actually afford these payments.
adriangc@reddit
Yeah I find that Reddit vastly underestimates the count of households with incomes of $200k+ (or even $500k+) and presume everyone making these payments have a 27% interest rate and are in over their head. Just not the case. At least not without inspecting the bell curve of payments against income/net worth more closely.
driventolegend@reddit
Making $100k to $150k does NOT mean you can afford a $50k to $70k new car. This is half of the millennials on Reddit who do this and then complain that they can’t save for retirement.
No, your gRoWiNg FaMiLy does not mean you need to drop $50k on a new Highlander and $35k on a new accord. Over half of the people driving new cars are barely breaking even after living expenses, they think that $600-$1200 per month worth of car payments is something that everyone does and is just something you have to budget for.
A “used” car does not mean “5 years old or newer.” You need a well maintained 2015 Highlander for $20k cash. Yes it will last until your kids grow up if you maintain it. Yes it will have repairs that cost over $1000 every so often, but all cars will.
Resident-Resource726@reddit
I make 300k and bought a Corolla in cash, but I still felt that bad. IDK how people are comfortable with a luxury car. Running costs are crazy for most vehicles, the car itself is just part of the equation.
meodd8@reddit
As always, it depends on where you spend your money.
Resident-Resource726@reddit
Yeah I didn't really give any nuance, but I know so many people too willing to roll over negative equity. That's moreso what I'm referring to.
Kamukix@reddit
No no NO! That's not what Reddit told me! 🤬
PurdueGuvna@reddit
I’ve bought my last 4 cars with cash, so how do cash payers factor in?
Odd_Fox5573@reddit
I’m at $577/month on a 5yr payoff
UnmakingTheBan2022@reddit
Why does this matter to you? Are you a loan shark?
gsasquatch@reddit
https://www.kbb.com/awards/lowest-5-year-cost-to-own-cars-trucks-suvs/
5 year cost of ownership is at least $500/month. If you're getting a new car every 5 years, you're paying at least that. Well, $476 for the Bolt, everything else is higher.
If you keep it longer than 5 years, that number goes down the longer you keep it.
I average about $150/month for purchase and repairs on my teenaged cars. I don't finance them, so no payment, that's the average cost over the life of the car for what I buy it for, what I give the mechanic when it needs it, minus what I sell it for after. My taxes and insurance come in about $100/month cheaper than a new one too.
Friend of mine bought new, and kept it 20 years, he probably came in around $150/month too.
I could afford a new car, but I'd rather not. It'd mean if I lost my job I'd be in that much more trouble, and I wouldn't be able to sail as much. My boat is $200/month just to keep. What I save on my car, I use for my boat.
Keeping a car 20 years like my friend did seems boring. I switch mine out every couple few years. I've had over 20, often 2 or more at a time because I like cars. Just not expensive ones.
A couple cars I had averaged about $40/month. Those were fantastic. Highest average was about $250. That sucked. Cheapest cars I had in the $40/month range, one I bought for $250, another $1500, another $800. Most expensive $200-250/month cars I had I bought for $8000-9000.
I have one $14,000 car now, and so far it isn't too bad, it might make it down to $150/month. It's sitting at about $400/month now, but, might still have $10k in value, which would put it at about $140/month.
Ceska-Zbrojovka@reddit
"How are people affording this?"
By living beyond their means. People see "influencers" and want to experience those same things, even if they cannot realistically afford them.
My limit for total vehicle expenditures is 10% of my monthly net income. Anything beyond that is, "is this really worth it," material.
privatejetvillain-@reddit
Or maybe it’s just that a lot of people in America can afford them. About 7 million adults and 14 million households make over $250,000 a year, and roughly 75% of auto sales are used vehicles anyway. I don’t know why people keep reaching for theories when the numbers are right in front of them. Broke people just assume everyone else must be broke too.
Logitech4873@reddit
In the US*
You should put important context in the title.
privatejetvillain-@reddit
Reddit is a U.S. based site so it should be common sense that the default is America.
ethanlegrand33@reddit
My payment is $625 a month.
First vehicle purchase so not a favorable rate, 7%. But I put down almost 30% on a 36 month loan. On track to pay off in 30 months so won’t pay much interest in the grand scheme of things.
Just have to budget accordingly to make it work.
That1Time@reddit
car payments are hella gay
verdegrrl@reddit
No slurs. Thanks.
Notonfoodstamps@reddit
2018 Volvo XC60
$522 / month (includes a 36k 3 year extended warranty)
Couldn’t get it bellow 7.8% APR (take care of your credit people)
Anonymous_account975@reddit
Our payment is in the $500’s for a 2026 Tesla Model Y Premium AWD.
albiorix_@reddit
US culture also breeds the "keeping up with the Jones's/ I work hard, I deserve this" mentality. Plus the social media aspect of "instaballin."
fordprefect294@reddit
You should really be looking more at median than average. The fact that sticker prices can vary by an order of magnitude depending on what segment they're in will skew the numerical average
BuriedMystic@reddit
$750 a month is $9000 per year, and assuming a 22% top tax bracket, that converts to ~$11500 pre-tax income. Median personal income for full-time workers in 2025 is $62,300, so that payment represents 18% of median income for an individual.
It would be less for a higher earner or multiple income household and even less when using the figure in the article for average used car payments, $529/mo.
It seems like that’s not too bad? A household making the median $83k per year could afford two used car payments as 15% of their gross income.
Skensis@reddit
Median new car buying household makes about 120k a year, households that buy cars generally are more well off than ones that don't.
BygmesterFinnegan@reddit
They could even get a new Corolla for less than $450 a month stretched over 72 months.
Yuuta23@reddit
Mine is 300 bucks got 3 years left on a 5 year loan for a Chevy trax at 5 percent interest def a longer term than I would like but I wanted certified pre owned cause I was tired of beaters
ShadowGLI@reddit
My current payment is $600 on a 2024 VW and I own another 2012 car outright.
The vw js only a $36k car, The idea that way more people are rolling around in $60k+ everywhere (majority of full size trucks) is mental to me and I make like $160k/yr. I COULD afford it but it’s so incredibly wasteful.
spizalert@reddit
If you read this thread and you a) don't know how interest works or b) don't immediately Google it, then you are the sucker dealerships salivate over.
Dealership financing departments aren't your friend and have no fiduciary duty to you. They'd put a 98 year old grandma $140k into debt without blinking.
Be vigilant, good and bad financial decisions start + stop with you.
tnstaafsb@reddit
A 98 year old grandma going into 140k debt isn't necessarily a terrible decision for the 98 year old grandma either. Probably a bad decision for her heirs if they were planning on getting any inheritance, but otherwise that debt will disappear when she dies.
spizalert@reddit
lol fair play. brb gonna have my grandma close on a Type R before she croaks
strmshdow84@reddit
I guess im outing myself lol. 1400 + 800 + 1000 + 1000 for my Emira, Exige and then 2 model 3s.
dwntwnleroybrwn@reddit
Why does one need 2 model 3s?
formerly_regarded@reddit
Because two people can't drive 1 car at the same time?
R_V_Z@reddit
Lies.
strmshdow84@reddit
Wife's car and teenager who's now in college. While I wasn't a fan of the second purchase I wasn't gonna fight my wife over it. She was won over by the "safety " of it 🤦🏿♂️.
dwntwnleroybrwn@reddit
Fair enough, and I assume a SO's. I guess I've just never known a couple whole were so aligned on like the same car twice.
strmshdow84@reddit
Not at all for me lol. The Emira is my daily and Exige is my toy car. Wife and kid own the Teslas. I wasn't a fan, kids supposed to get cheap first cars lol. But again, wasn't gonna fight her over it lol. She was in favor of the supposed safety of the at the time, that and the automated systems. And she works so not much reason to tell her no.
JamesRawles@reddit
Because he likes to party.
strmshdow84@reddit
Partied a little too hard this year 😭
7eregrine@reddit
Look at this guy, living beyond his means. Probably making payments with credit cards, amirite?
/s
Duranti@reddit
If I can't afford it in 3 years at <$300 a month financed, I don't want it.
Currently driving a 2016 miata I paid cash for. It feels good not to have a car payment.
not_that_observant@reddit
This heads your are only buying used cars cheaper than $10k, right?
Duranti@reddit
No, I have savings and plan, but am willing to finance up to that amount. I just said I bought my most recent car in cash.
quadcammer@reddit
Do you understand what a downpayment is?
not_that_observant@reddit
So... You're implying the original commenter is putting down a very large down payment?
A normal down payment is 10-20 percent. Still puts the total price of the car around 10k. 12k tops.
footiebuns@reddit
I bought new and had similar terms after putting down around 70 percent. It's probably not reasonable for most people wanting to buy new though.
KobeBean@reddit
Financially that’s usually a silly idea, as especially with new cars, automaker financial services offer terms with lower APRs than the % return you can make in stocks. Automakers often offer 0-2% APR loans
WatchStoredInAss@reddit
Yep, they just took his 70% down cash and invested it themselves, lol.
BygmesterFinnegan@reddit
Miss my Miata but I'll take a safer car even if it cost more.
3600CCH6WRX@reddit
Agree . Especially so many trucks with big front ends.
BygmesterFinnegan@reddit
Drove Uber full-time and had more close calls with the Miata I drove once a week.
Euler007@reddit
In 1989 dollars sure.
Skensis@reddit
Just paid it off, but was nearly $1k.
Inspirice@reddit
I mean for enthusiast cars it's understandable, but when most are for regular traffic...
Rynyann@reddit
Right. When your car is also your hobby the budgets merge to an extent.
Maybe it’s because I just live in an area where there are a lot of blue-collar bad-credit guys buying F350s or whatever, but I expected that number to be pretty much smack at $1000 a month
XCGod@reddit
The F350 with a crew cab and short bed is the status symbol of my industry. A lot of them have never had a trailer hooked up either.
k0fi96@reddit
I can make the same argument. An M2 is a status symbol, especially on a car forum that's why people have flairs. Plus pretty much all of them never see a track.
ManufacturerBest2758@reddit
The M2s haul the same amount of stuff (the driver and a bunch of air) to the same places (work and groceries) that nearly all truck drivers do
k0fi96@reddit
No kids?
ManufacturerBest2758@reddit
Kids fit just fine in things that aren’t full-size pickups
IS-2-OP@reddit
They’re great street cars too and you can still have plenty of fun with them. Tracking a car is very expensive and can damage the car pretty quickly. Frankly I have no interest in tracking my nicer car and would just buy a dedicated old slightly beat BMW instead lol.
k0fi96@reddit
My point is sports cars and trucks are built and marketed for very specific tasks that none of the owners actually do, but every just shits on the truck owners.
withsexyresults@reddit
But sports car are atleast still fun on normal roads. A truck is going to boring to drive no matter what
XCGod@reddit
I drove my buddies diesel F350 with a delete and a transmission tune and it was pretty fun. It wasnt going to carve up a racetrack but the 0-60 had to be sub 6 which is wild in what feels like a monster truck.
withsexyresults@reddit
Maybe I’m too use to eletric acceleration but sub6 doesn’t sound that fun
IS-2-OP@reddit
It’s fun in a huge truck cause it’s a huge fucking truck and it shouldn’t be moving like that.
withsexyresults@reddit
But you can go even faster 0-60 in a sports car vs a truck if you consider taking off being fun
IS-2-OP@reddit
I mean yes that’s true but it’s fun in a sketchy way. Like my V6 RAV4 is quick and fun in a sketchy way. It’s like funny. My 440i is fast in like a serious way it’s different. I don’t laugh out loud in my 440 after a pull.
IS-2-OP@reddit
I wouldn’t say sports cars are made for the track in most cases. I think almost all of them really are just supposed to be fun street cars that are track capable. Most of them are actually set up poorly out of the box for track stuff.
k0fi96@reddit
Many are tested, developed and reviewed on race tracks and the reviewers often talk about driving characteristics that are really only applicable on the tracks
IS-2-OP@reddit
I agree with that for sure. These cars limits can only legally be pushed at a track. But honestly modern cars are so well designed that that even can apply to regular traffic cars too lol. I do wish more manufacturers offered stock track packages like ford and Chevy do. If you want a track ready sports car these days they’re all expensive as hell. Especially tired man so many sports cars come on awful tires. Especially mustangs.
Skensis@reddit
Yup, for me it's my hobby I budget around the cost and the cost to track it. It's not a good financial decision, but it's not one that I can't afford.
k0fi96@reddit
It's only reasonable here. 1k car payment for a car that only does one thing is not good value. Especially when it's going to depreciate lol. Why are pretending 1k for a sports car is good when 1k for a family hauler is something only idiots do.
Skensis@reddit
Luxury cars are almost never good value financial, but if you can afford that sports car, truck, family crawler and it makes you happy, then go for it.
k0fi96@reddit
That's my whole point, everyone in this thread assumes people can't afford these payments when there is no evidence that is the case. It just shows the raw average, not a percentage of monthly income.
FrankReynoldsCPA@reddit
I think income level really comes into play here. There's a lot is people for whom a $1,000 car payment really isn't that much.
ManufacturerBest2758@reddit
Yeah if you’re a dual-income family with both earners near or past six figures, which is not unusual, it’s perfectly fine
max_power1000@reddit
Most mass market 3 row CUV family haulers essentially start at $40k. Add a slightly higher trim and tax/tag/title and you’re at $50k easily. No money down and/or minimal trade because you drove your last car into the ground, that’s every bit of a $1k payment on a 5 year loan.
DrZedex@reddit
That's about the payment for my enthusiast car. But it's a lower msrp than most regular traffic so I'm not sure enthusiasm matters that much. People spend loads of money on generic appliance-grade vehicles.
Speedy_SpeedBoi@reddit
75% of car sales are used cars. So to answer your question: Most people are not able to pay for new cars. New car monthly payment average is more of a reflection on the top earners and 25% people buying new. So that stat is heavily skewed by poor people almost always buying used.
7eregrine@reddit
This. But, of course, Reddit being Reddit, top comment: "They can't afford them, people are living beyond thier means!"
National_Put_2357@reddit
Yeah I feel like these car payment threads pop up every few months or so lol. Everyone’s financial and life circumstances are different.
Like if you live in a HCOL vs LCOL city or area, how much debt you have currently, the actual loan terms, etc.
balthisar@reddit
My Expedition is $1,819.57 per month.
How can I afford this? I make the payments from the savings I built in order to pay for it.
So what didn't I just pay cash? Because Ford Credit gave me 1.9% on a four year loan with pretty much no money down, while the rest of the money is getting VTI and VXUS returns.
Why are you an idiot for buying something so frivolous? The Expedition it replaced was 18 years old, and my daily driver is an EV. It's not frivolous at all.
M4NOOB@reddit
Do regular non car people buy that many cars on debt? Over here it's usually lump sum for a used car and not going into debt? Or leasing
SyntheticOne@reddit
Except for high income people who can easily afford to burn a $1,000 a month out in the back yard, I would hold that very few people should be driving a new car off the lot. It is absolute insanity.
It is also even crazier than you think. Example of buying a new $42,000 Hyundai Santa Fe SUV.
So, recommend buying a 2 to 4 year old vehicle at half off or more of the original MSRP to cut the above costs in half or more. Even smarter would be to get the hell off the lifelong car payment treadmill and pay cash for a 10 year old car and start saving for the next one that is 8 years old and so on.
MOST people can do this but it does take discipline. Do this and by the time you're in your 50's you can buy any car you might want for cash. We can to that and we still NEVER buy a brand new car even though we could. This is freedom and it is within most people's grasp. But to do it you need to ignore the slick marketing techniques which are designed by experts who are expert at separating us from our money.
SophistXIII@reddit
This is outdated advice.
The used car market is so strong that this really only applies to luxury EVs.
Lots of desirable 2-3 year old cars (Toyotas) are still near MSRP and are by most accounts a worse buy factoring in higher interest rates and warranty.
platinum_toilet@reddit
That seems too high. My I pay about $550 for 6 months.
TheGuyDoug@reddit
I don't know why you'd be nauseous at the thought of a $300 car payment...even just 10 years ago that's only $225 equivalent. I don't know what kind of reliable car you'd expect to have a $150/mo car payment for short of putting down $15-30k+ cash for.
CurbsEnthusiasm@reddit
Car and home purchases are some of the most critical in your life, and most people go into it uneducated.
Skeptical0ptimist@reddit
I view a car purchase as a bulk purchase of consumables. So just one class above the most basic, and then either cash buy or as little financing as possible.
Zudop@reddit
When I got my car I put enough down to make it around a $350 payment. I cannot imagine doubling that at all
Tony-cums@reddit
How is anyone shocked that people make more money than them and / or just make bad decisions?
humdizzle@reddit
because this is an average. Mean, median, and mode. This is also solely data on NEW cars.
If you have alot of the upper middle class and top earners buying new... but lower earners are just buying used vehicles. Then you have results like this
Alive_Internet@reddit
My philosophy has always been that if you can’t comfortably afford to pay cash for the vehicle, you should get something cheaper. With today’s cost of living, I don’t understand how so many people can feel comfortable having a car payment.
runway31@reddit
It blows my mind people just accept car payments as a way of life. All my vehicles are paid in full and I wont be buying another one until I can actually pay for it. Theres way too many cheap used options out there that are easy to work on that don’t require payments
MichaelAuBelanger@reddit
Skews right
J-MAMA@reddit
I hope it gets to $1000/mo 😂
Higher! HIGHERRR!
Ftpini@reddit
My car payment is $750 a month. I considered just paying it off in cash. But with my savings account pulling 3.65% and the big beautiful bill making my interest tax deductible, it drops my effective interest rate from 5.9% to 2.15%. If the situation shifts significantly then I’ll pay the car off on the spot. As it stands I’m holing the money back in savings to use towards a new house. If that goes through I may use some of my equity to pay off the car depending of whether the house lands north or south of 5.9% apr.
downbadmilflover@reddit
WarCrimeGaming@reddit
The firebird?
downbadmilflover@reddit
I don’t know if you’re joking but the Firebird had its engine rebuilt then it blew a head gasket again. I live in the desert so I really need a car in good condition.
Because I always wanted a fast badass car I figured I would stretch my budget for the Mustang GT. It has been good to me.
Carrera_996@reddit
Mustangs are stupid fucking reliable. Solid choice.
downbadmilflover@reddit
I got lucky that mine only had 5240 miles and certified preowned by Ford so I pretty much got a brand new Mustang GT for 33K.
IS-2-OP@reddit
Most first owner mustangs barely get driven.
justnoname@reddit
Why does it feel like I’ve seen this exact same post every month for over 5 years? You’d think that if it’s been a problem so long the market would have crashed by now
mr_lab_rat@reddit
That’s crazy. But understandable considering the cost of new cars.
I only leased cars when I had my company could write it off taxes.
Any other time I just drove what I could afford. At the beginning it was a $1200 Sentra but that’s ok. It motivated me to save up for a better car.
-Parou-@reddit
Don't buy New Cars
MrWhiskers8585@reddit
I always let someone else eat the depreciation. The only new car I've ever bought, solely because I didn't know any better, was in '09 and I was like 23 or 24. I remember the sales guy telling me I couldn't afford the $450/month for a new wrx so I ended up buying an outback sport for $330/mo lol
costafilh0@reddit
Anyone making @$4K/month+?
Specially possible for those who don't live alone, or in expensive cities, and don't have children.
Dazzling-Rooster2103@reddit
I could probably afford to pay that much pretty easily, but looking at my budget, and with maxing out my retirement accounts, It would be a horrible decision.
mgobla@reddit
People don't understand the word "average"... If just a few people buy a hypercar for over $5million that significantly increases the average.
Dazzling-Rooster2103@reddit
Rich people also love to finance things, dropping $5 Million in liquid cash onto a depreciating asset is a horrible financial decision when they can get a loan for a solid interest rate, and invest that money instead.
Feelin_Dead@reddit
This post is crazy. Its insane what people are paying for a depreciating asset. I recently had to replace my vehicle and to get a newer year of the same truck I had was $70K. Prices are just stupid. I went a different route and couldnt be happier.
SargentoPepper@reddit
Paying $500 a month when your paying $1200 in mortgage or rent is one thing but nowadays it’s 700 for a car and 2500 or more in rent even in middle cost of living areas. Car prices have increased pretty much at the same rate inflation has but other costs have increased far beyond and wages have not been keeping up.
F150s & Siverados used to be for everyday Joe’s just talking middle of the pack trims. Now you’re looking at 55k which is crazy for a utilitarian vehicle.
formerly_regarded@reddit
The bad financial advice (and grammar) is calling from inside the house. Paying =/= financing.
platinum_toilet@reddit
My average car payment per month is $0.
bean_fritter@reddit
Mine is $700 for 4 years. I can afford it.
Threewisemonkey@reddit
I bought my car back from the salvage yard for $850 and put a new battery in it. I can’t even justify buying a $5k replacement but I guess I’m weird.
Ain’t never going to have a $750 payment, that’s crazy talk
SargentoPepper@reddit
Whats your hobby?
max_power1000@reddit
You need to look at what things cost. Every $10k you finance is roughly $200 worth of payment on a 5 year loan. Even something as pedestrian as a new CR-V in base trim is going to put you around $35k OTD, so if you come to the dealer without a down payment or a trade, that’s $700 right there.
Your $300 payment means $15k financed, and frankly speaking, $15k doesn’t buy all that much car anymore, even used. You’re looking at something fairly old with a sale price that low assuming you’re the type to drive a car into the ground and it being worth next to nothing on trade.
AtomWorker@reddit
Car payments, like the average new car sale price, are an incomplete and simplistic way of looking at auto sales because it doesn’t account for demographics.
Those figures are also used to create the impression that cheap cars no longer exist when that simply isn’t true. There are still a variety of new sub-$25k cars out there. High interest rates are a killer if you’re financing but historically speaking that’s not a new problem.
victorybuns@reddit
Cars in the USA are so much a part of our culture and identities now that people are willing to sacrifice so much for them, oftentimes getting a vehicle they really can’t afford or opting into loan terms that are incredibly unfavorable. When I see the average car payment climb I also see retirement savings fall, debt rise, vacations or experiences not being had, and houses not being bought. I’m serious when I say I think people put so much of their money and identities to cars that it’s now almost a priority over their housing. They’d rather rent somewhere dirt cheap then ever save to buy a house, have a family, or retire. The math just doesn’t add up. But hey, at least they’re driving their luxury car!
TaskForceCausality@reddit
Frankly, it is for some folks. And I cognitively get why. If youre poor/working class and live in urban America , it’s a lot easier to buy a BMW than a nice house.
In rural parts a Lariat F150 replaces the BMW, especially if the owner work a job that’s on the road.
IditarodDays@reddit
You just dropped a paragraph of pure fact 💯
k0fi96@reddit
The car payment doesn't matter. You need the percentage of monthly income to actually tell a story. A bunch of rich people is only 15% of their massive monthly income could be propping this number up like they are everything else.
maranelloboy18@reddit
I think the bigger part of this is keeping a car long term, that’s where you see the equity in the car build and a large payment mattering a lot less. The last two used cars I bought I ended up selling within 2 years and getting out of them with no equity, that sucked. I took a leap and bought a new Type R this year, the payment is not a problem for me but it’s definitely higher than I would’ve liked. That said it’s a car that will hold value, with very little down (read two cars with zero equity) I’ll still be right side up within a year. In 5 years I’ll have a paid off, 5 year old, valuable car in my garage that will last forever. Finding the right car up front is the right way to go, settling on the wrong car wasted a lot of money.
dangerjest@reddit
Warren Buffett drives a 2014 Cadillac.
Born_Tension1822@reddit
Bought my Toyota in 2007 brand new and I’m still driving it because of this very thing. Cars are terrible sinks of wealth. Buy something reliable and drive the wheels of it.
Significant-Pen-6049@reddit
My wife hates that I keep three Pontiac vibes alive but it’s way cheaper than a car payment and keep the cheapest insurance on the one I drive.
Apex_All_Things@reddit
At my peak of car payments, I was paying $2450 a month on a Bronco and ZR2 HD, but the HHI at the time was $300k gross. We are in a K- Shaped economy, so if you have assets then you’re benefiting greatly.
Something has to change because people can’t continue to roll over negative car equity into loans. Even with 0% Apr loans coming back, the prices of vehicles themselves are too elevated.
cpufreak101@reddit
And I'm paying $540/mo for an EV, how are people spending more :(
IditarodDays@reddit
They are spending more, but that doesn’t mean they are earning or affording more.
They will retire with no money in their accounts and have deep regrets about the brand new Cadillac they got and replaced 3 years later.
For some proof these people are living way above their means:
https://www.uc.edu/news/articles/2025/11/car-repossessions-surge-to-highest-level-since-2009.html
guy_incognito784@reddit
Either they can’t or they make enough in order to. The payment on my i4 is about $1500/month.
Probably a function of that K shaped curve you hear about.
Dignam3@reddit
At least in the US, people generally suck with personal finance. That, and what covid did to the used market. The days of a reliable $5k used car (with rare exceptions) are gone. Also, wages aren't really keeping up with prices, including housing, but that's another discussion.
Granted my vehicles are fully paid off, I think I was quoted a $650/mo payment for my Maverick.
BioDriver@reddit
I’m about $600/mo, with an overage of $100 so I can pay it off faster. Wife’s Impreza is about $350.
I make enough to afford it, plus not having kids helps a lot.
caterham09@reddit
The monthly payment is so much less important than the final sales price and the overall terms of the loan (assuming it fits in your monthly budget).
Take 2 scenarios. Both person A and person B buy a $50,000 vehicle.
Person A puts down 20% of the total price and finances the rest over 60 months at 5% APR.
Person B only puts down 6% of the total price and finances the remaining amount for 72 months at 5% APR.
Both individuals will have a total monthly payment of just over $750, but person A has some significant advantages in their loan over person B.
Person A will pay about $2300 less for the car than person B over the life of the loan. More importantly though person A has a significantly higher level of financial flexibility. If they lose their job and can't afford the payment anymore, person A is going to be easily able to get out of that loan, and likely will even have equity built up. This gets exacerbated when you factor in taxes and state fees that wasn't considered in the calculations.
It's not really a bad thing to finance a vehicle, but many people don't take into consideration that they are buying a depreciating asset that they should be trying to pay down rapidly.
Dopplegangr1@reddit
Assuming person B had the cash to put down 20%, they would come out on top if they invested their extra $7k over the term instead of using it for a down payment
3600CCH6WRX@reddit
Which saving gives you more than 5% today ?
Hollow-Ling@reddit
Having a paid off or nearly paid off car is a very secure feeling. I originally leased my '20 Civic Si, bought out the lease with a 5 year loan, ALMOST paid that loan off in 2 and a half years, but then it got totaled while it was parked. Still because I only had $400 left on the payments I got a lot back from insurance to put a very significant portion of a down-payment into my '25 Si vs if I didn't pay off the loan quick I wouldn't have gotten as much money back. You never know what comes up in life so it's good to not go under incase anything happens.
SavageryRox@reddit
Similar experience, financed a slightly used CX5 to get the best price & paid it off within a month.
On top of that, I was able to get a much better price than new. Basically 40% off MSRP for it being 2-3 years old & 19,000 miles on the odometer. Had a clean title & maintenance records too. Brought it for 29,900 CAD OTD. A new CX5 GT at the time was around $50,000 OTD.
Pluggedvize@reddit
I'm actually paying 750 right now but it's because I ended up rolling over my negative equity from another car that was like 7G into an EV lease and used the credits I got to essentially balance it out. I am paying 750 because I'm on a 3 year lease instead of a 66 month loan.
SerMumble@reddit
I bought a used Toyota Tacoma. Practically like brand new for a fraction of a new truck. $0/month.
I am not good with money. Luckily I had a friend willing to talk me down from buying new.
The average person has no savings and are buying overpriced new vehicles outside their means. Monthly payments distract from the overall cost and interest of buying new could afford 2-4 really nice used vehicles. Broke family and friends propogate bad advice.
Loltoor@reddit
$1200/mo for my C8Z06
Carrera_996@reddit
Nice ride!
Vinsmoke2jz@reddit
I pay $650 for my GTI
beforesunsetearth@reddit
$750 a month? My last car didn't even cost me $750... OK slightly over with taxes/tags but still. I'm gonna be running it till its no longer economically viable which at this rate, is never going to change.
throwawayfuqreddit@reddit
My 2002 Grand Am blew up and my father wanted me to get a car ASAP in 2018. I hated paying $316 for 6 years for a $16,000 2017 Malibu with 20k miles. Im so grateful now that I dont have to pay double that for a decent car now.
IndicationCurrent869@reddit
Most people can't afford to buy new cars and when they do they buy expensive SUVs at too high interest rates. But, yes, cars (even used) are hideously expensive .
Tutorbin76@reddit
Nothing. I'd never consider buying a car I couldn't afford.
Postty@reddit
Last year we had two loans totaling about 1200 a month. Paid off our 4runner two years early and now I'm just paying an extra 600 a month into the loan for my 240z and will have that paid off by April.
Crazy that my loan apr for my Datsun was higher then I really wanted to do but it's lower than if I bought a new or used car now
My coworkers brother in law got a truck and is paying about what I was paying for two cars with a higher apr than both mine combined and is underwater on it already and has missed payments.
Hollow-Ling@reddit
$175 a month for 4 years at like 6.8% interest (A crime really given my credit score), I'm paying $300 a month right now with an extra $1,000 payment sprinkled in and more in the beginning of next year cause I don't even want this loan to last more than a year and a half. Can't imagine trying to survive on these $750+ a month loans before even factoring in insurance 👀.
Energy4Days@reddit
Late stage capitalism is meant to keep you on your toes and be obedient to the powers that be for fear of losing your job or income source.