One of the common misconceptions when it comes to car payments is that people think they only have to pay for the car when they buy it. aside from purchasing your new vehicle, you will also be paying for insurance (although this depends on state laws and can range anywhere from $100-200), gas, upkeep costs like oil changes and tune-ups—plus maintenance repair costs. and if you’re leasing, you’ll need to continue making lease installments in addition to paying your down payment. moreover, many times people shrug off all these additional expenses because they don't intend to keep their car very long; however there are accidents or other unforeseen circumstances that make it necessary. and once someone has spent hundreds if not
what is a reasonable monthly car payment?
$150-$400
according to the average car payment calculator, a reasonable monthly car payment is $250 per month on a 36-month loan, and anywhere from $100-$200 per month on an 84-month loan. regardless of which you choose, keep in mind your entire amortization schedule and be prepared to make additional payments towards the end. for example, by paying more than your required monthly payment during 12 months of your 48 amortization schedule (in addition of any extra payments) you would save thousands of dollars by avoiding pre-mature amortizations.
what is the monthly payment on a $30000 car?
the monthly payment on a $30000 car starts at an interest rate of 1.90% then goes up depending on factors such as how much you are putting down or whether or not there is negative equity. let's use the same example vehicle, a kia sorento, and it will have a monthly payment of $426 for 36 months with an apr of 2.90%. it would cost us an upfront lump sum of $4500 to pay it off in full!
however, if this car has an apr before tax 2.90%, which is set by the dealership what they want to charge versus what the bank sets their apr to be, then it might be wise for them to find another dealership
is $500 a month a lot for a car payment?
technically yes.
normally $500 is more than your traditional payment on a new car, which would be around $150 per month. but the good news is that interest rates are so low right now you can get almost any kind of new car for less than $500 per month!
to find out how much you could save, use our car calculator below to compare today's rates to what you're paying now. to also see all of this information in an easy-to-read summary form, just enter your current monthly payment above and click “compare”. this will show you how much more or less it would cost each year when compared with today's low interest rates. to calculate based on years instead of months,
