Is a $700 a month car payment too much?

"I want to buy a car that's $34,900 for 60 months. I'm not sure what the APR is, but the monthly payment is $700. Is this too much to pay?"

“The amount you pay is dependent on three things:
  • APR
  • Loan amount
  • Length of the loan
From what you’ve listed, your APR is about 7.5%. That might not be too bad depending on your credit, but it’s on the high side for those with good credit. You can monitor your credit score with Credit Karma.
Like you would with car insurance, make sure to shop around to find the best rate possible. Credit unions are usually your best bet, but banks and even dealers offer special loan rates at certain times throughout the year.”
Eric Schad
Answered on Jul 28, 2021
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.

Did this answer help you?

Ask us a question by email and we will respond within a few days.

Have a different question?

You can meet us at our office and discuss the details of your question.

Easiest way to compare and buy car insurance

No long forms
No spam or unwanted phone calls
Quotes from top insurance companies