What is the average car payment since july 2022?

Average monthly car payments for new, used and new leased vehicles spike year over year. The average car payment for a new vehicle is $700 monthly, according to third-quarter 2022 data from Experian — up 13.3% year over year. Meanwhile, new lease payments average $567 (up 12.1%).


What is the average monthly car payment in 2022?

The average monthly car loan payment in the U.S. is $700 for new vehicles and $525 for used ones originated in the third quarter of 2022, according to credit reporting agency Experian.

What are auto loan rates for 2022?

The average interest rate for auto loans on new cars in 2022 is 4.07%. The average interest rate on loans for used cars is 8.62%. If you have a high credit score, you can expect your interest rate to be slightly lower than these figures.


What is an ideal monthly car payment?

Financial experts recommend spending no more than 10% of your monthly take-home pay on your car payment and no more than 15% to 20% on total car costs such as gas, insurance and maintenance as well as the payment.

What is the average car payment in the United States?

Key monthly car payment statistics

The average monthly car payment for new cars is $667. The average monthly car payment for used cars is $515. 38.22 percent of consumers financed new vehicles in the second quarter of 2022. 61.78 percent of consumers financed used vehicles in the second quarter of 2022.


The average car payment is soaring



Is $400 a month too much for a car?

In general, experts recommend spending 10%–15% of your income on transportation, including car payment, insurance, and fuel. For example, if your take-home pay is $4,000 per month, then you should spend $400 to $600 on transportation. To be sure, that range is simply for guidance.

How much should I spend on a car if I make 60000?

It's typically recommended that you buy a car worth no more than 35% of your gross annual income— so if you make $60k per year, you can afford a new car that is worth $21,000 or less. Some cars that fall in this price range include: 2020 Honda Fit - starting price $17,145. 2021 Kia Soul - starting price $18,765.

How much car can I afford if I make 50k?

Know Your Expenses

Expert estimates range broadly. Greg McBride, a senior vice president, chief financial analyst at Bankrate.com, advises that a car payment should equal no more than 15 percent of your pretax monthly pay. That means that if you make $50,000 a year, your monthly car payment could be as much as $625.


What's the best time of the year to purchase a car?

End of the year, month and model year

In terms of the best time of the year, October, November and December are safe bets. Car dealerships have sales quotas, which typically break down into yearly, quarterly and monthly sales goals. All three goals begin to come together late in the year.

Is 800 a month car payment good?

Experts say your total car expenses, including monthly payments, insurance, gas and maintenance, should be about 20 percent of your take-home monthly pay. For non-math wizards, like me – Let's say your monthly paycheck is $4,000. Then a safe estimate for car expenses is $800 per month.

Is it smart to do a 72-month car loan?

Is a 72-month car loan worth it? Because of the high interest rates and risk of going upside down, most experts agree that a 72-month loan isn't an ideal choice. Experts recommend that borrowers take out a shorter loan. And for an optimal interest rate, a loan term fewer than 60 months is a better way to go.


What is a good credit score to buy a car in 2022?

Your credit score is a major factor in whether you'll be approved for a car loan. Some lenders use specialized credit scores, such as a FICO Auto Score. In general, you'll need at least prime credit, meaning a credit score of 661 or up, to get a loan at a good interest rate.

What is a good interest rate for a 72-month car loan?

The average interest rate for a 72-month new car loan is about 5.4% and 9.2% for a used car loan.

What is the average new car payment now?

The average car payment for a new vehicle is $700 monthly, according to third-quarter 2022 data from Experian — up 13.3% year over year. Meanwhile, new lease payments average $567 (up 12.1%). With the lowest jump at 11.2%, used cars have the lowest average monthly payments at $525.


How much is a 40000 car payment a month?

For $40,000 loans, monthly payments averagely range between $900 and $1,000, depending on the interest rate and loan term.

Is $300 a month a good car payment?

Calculate the car payment you can afford

NerdWallet recommends spending no more than 10% of your take-home pay on your monthly auto loan payment. So if your after-tax pay each month is $3,000, you could afford a $300 car payment.

How to negotiate car price in 2022?

7 steps for negotiating your car price
  1. Figure out the essentials. Before negotiation can begin, think about what kind of car you want. ...
  2. Get preapproved for financing. ...
  3. Research the car's value. ...
  4. Research dealerships. ...
  5. Shop around. ...
  6. Read up on negotiation tips. ...
  7. Switch salesperson if necessary.


Is 2022 a good year to buy a car?

While soaring used car prices are bad for those who can't afford a new car, they may mean 2022 is a good time to buy a car for those with a vehicle to trade in. A high trade-in price means added capital that can help reduce the finance share of purchasing a new car.

Will cars be cheaper in 2022?

This has fueled demand for used cars. Average prices were up 42.5% in September 2022 vs. February 2020. Used car prices have likely peaked, but new car prices are set to remain elevated through end-2022. In 2023, prices are expected to decline by 2.5% to 5% for new cars and by 10% to 20% for used cars.

How much should I spend on a car if I make $100000?

Many lenders approve car loans (and refinance loans) with a DTI around 50%. To find out how much car you can afford with this 36% rule, simply multiply your family's income by 0.36. So if you earn $100,000, for example, you could afford to take out a car loan of up to $36,000 — assuming you don't have any other debt.


How much should I spend on a car if I make 70000?

If you earn an annual income of $55,000, for example, that means your budget for a car should be $5,500-$11,000. If you make $70,000, your budget would be $7,000-$14,000.

How much car can I afford on 75k a year?

The 36% Rule: With this rule, your total loan payments shouldn't take up more than 36% of your salary. This includes your mortgage, car loan, personal loans, student loans, and minimum credit card payments. If you make $75,000 per year, your total loan payments shouldn't exceed $2,250 per month.

How much can I spend on a car if I make 80k?

The Frugal Rule: 10% of Your Income

For many people, I think that will be between 10–15% of their income. So if you earn $25,000 a year, that's going to be a high-mileage used car for $2,500–$3,000. If you earn $80,000, that's a used car for around $10,000 or $12,000.


How much should I spend on a car if I make $45000?

Follow the 35% rule

Whether you're paying cash, leasing, or financing a car, your upper spending limit really shouldn't be a penny more than 35% of your gross annual income. That means if you make $36,000 a year, the car price shouldn't exceed $12,600. Make $60,000, and the car price should fall below $21,000.

What car can I afford with 80k?

  • 2019 Ford Fiesta. Starting MSRP: $14,260. ...
  • 2019 Chevrolet Cruze. Starting MSRP: $17,995. ...
  • 2019 Nissan Frontier. Starting MSRP: $18,990. ...
  • 2019 Honda Civic. Starting MSRP: $19,450. ...
  • 2019 Fiat 500. Starting MSRP: $21,910. ...
  • 2019 Ford Fusion S. Starting MSRP: $22,840. ...
  • 2019 Honda Insight. Starting MSRP: $22,930. ...
  • 2019 Chevrolet Malibu.