How are car payments for others? (refinance, good credit, loans)

[Bulok]

Is $700 a month a normal car payment for 2 vehicles? Is it low or high? What's an average payment for a new car?

I am just curious since I have nobody to compare with or ask. I grew up with a single parent and my mother never learned how to drive.

Thanks in advance!

[flyingscotsman]

Depends on the costs of the car's

40,000 in car loans 4% over 5 years

$736 a month.

[cheesecracker]

Sounds reasonable, depending on the cars of course.
If your car loan is fairly new, don't forget to re-finance at around the 6 month mark.
As long as your credit has not gotten worse and you have not missed any payments since you bought the cars, most car loans can be refinanced for a cheaper rate.
You could save as much as $100.00 between the two cars every month.

Remember this:
Good credit is your best friend.

[DipDog3]

Originally Posted by Bulok

Is $700 a month a normal car payment for 2 vehicles? Is it low or high? What's an average payment for a new car?

Depends on what type of cars they are and how much you paid for them.

The rule of thumb is, for every $5,000 you pay for a car, you will owe $100/month:

Example:

$10,000 car = $200/month
$20,000 car = $400/month
$30,000 car = $600/month
$40,000 car = $800/month

[bs13690]

Mine's around 400 for a car a little over 20 with 0% down, 0% interest.

[USCRugbyNo1]

I paid mine off last month and very happy about it! Only 45k miles on the car and I hope to drive it for another 8 years!

[goindownsouth2011]

Just my opinion, but if your car payment is that high then you can't really "afford" it. No matter how wealthy you are or what kind of car you drive, nobody should have a $500+/mo car payment. If you were wealthy enough to drive such an expensive car, then you should also have enough cash for a more sizable down payment to avoid wasting so much money on auto loan INTEREST. And even the low/no interest loans are usually in lieu of a significant cash rebate, so you are effectively paying interest anyway. The phrase 'hood rich' comes to mind...

[The Native 1]

Guess it depends on your credit, financing and type/price of car. Personally I have not had a car payment in about 7 years and anything over about $300 would be too much for me to pay for a vehicle.

[gotimeclt]

Mine is $366/month for 60 months with 5K down. Interest rate is 1.89%

[vmaxnc]

Originally Posted by goindownsouth2011

Just my opinion, but if your car payment is that high then you can't really "afford" it. No matter how wealthy you are or what kind of car you drive, nobody should have a $500+/mo car payment. If you were wealthy enough to drive such an expensive car, then you should also have enough cash for a more sizable down payment to avoid wasting so much money on auto loan INTEREST. And even the low/no interest loans are usually in lieu of a significant cash rebate, so you are effectively paying interest anyway. The phrase 'hood rich' comes to mind...

It's for two vehicles.


I was paying $600/month, but it was low interest, decent price, little down, and it was the car I wanted. I could afford it.