What is a good car payment that the average person can afford?

What can I expect for an average monthly car payment? I need to buy a car and am just now going over my financing options. I have a decent job making about $3k per month and decent credit so I’m not worried about qualifying for a car loan but I am worried the payments will be too high.

Answer provided by
Johnny Puckett
Answered on Jul 07, 2021
Johnny Puckett is a freelance writer and automotive expert. He has contributed content to a number of some of the largest online publications, aftermarket automotive manufacturers’ sites, and automotive informational sites. His experience in the automotive and information fields informs his writing at Jerry. His automotive interests bleed into his free time, where he enjoys modifying his favorite cars and woodworking.
“Your payments are going to depend on:
  • your interest rate
  • what you buy
  • how much cash you pay for a down payment
What you should aim for is monthly payments that do not exceed 15% of your income.
For example, in your case you should look for a car that is somewhere in the ballpark of $20k or less. With a 6% interest rate and downpayment of around 20% your payments would be just over $300 per month for 60 months.”

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