Is 800 a month too much for car payment?

Whether $800 a month is "too much" for a car payment depends heavily on your income, but according to current data, it is significantly higher than average. While not uncommon in today's market for new cars, it is considered a very high payment that can risk overextending your budget.

Is an $800 car payment bad?

For example, if your car payment will be $800 per month, take that amount, and put it into savings instead. If you can make timely payments on your other bills, and still put food on the table, then it's safe to say that is an appropriate monthly payment for you to handle.

How much is too much for monthly car payment?

Too much for a monthly car payment is generally considered anything over 10-15% of your take-home pay, with total car costs (payment, gas, insurance, maintenance) ideally under 20-25% of your net income, though personal factors like credit score and other debts matter; aim for a shorter loan, significant down payment, and low interest for better affordability. 

Is $700 a month a high car payment?

Yes, $700 a month is a high car payment, as it's around the average for a new car loan in late 2025, but whether it's "too high" depends on your budget, income (aim for under 15-20% of take-home pay), and if it includes insurance/gas; for many, it's a significant chunk of their monthly expenses. 

Is $1000 a month a high car payment?

Yes, $1,000 a month is a significant car payment, often considered high, but it's becoming more common, especially for luxury or large vehicles, though affordability depends heavily on your income, with experts recommending 10-15% of take-home pay for the payment and 20% for total car expenses (gas, insurance, etc.). 

Wait... You're Trapped in a $800 a Month Car Loan?!

How many people have car payments over $1000?

Key findings. $1,000 car payments are more common than you might think. 8.6% of Americans with auto loans for new or used vehicles and leases had at least one monthly payment of $1,000 or more in the first quarter of 2025. A whopping 40.3% of these $1,000-plus payments originated in 2024.

What is a good monthly pay for a car?

We recommend you aim to spend about 10% of your take-home income on your monthly car payment. So, if you take home $3,000 each month after taxes, you might be comfortable having a vehicle with a monthly payment of around $300.

How long will it take to get my credit score from 700 to 800?

If you possess a good credit history and maintain a low credit utilization ratio, reaching an 800 credit score could be achievable within a few years. Conversely, if your credit history is poor or your credit utilization ratio is high, the journey might take longer.

What credit score is needed to buy a $30,000 car?

To qualify for a $30,000 car loan, most lenders prefer to see a credit score of at least 660 to 700. That being said, your credit score is only one part of the equation. Lenders will also consider: Your debt-to-income ratio (how much you owe compared to how much you earn)

What's a good downpayment for a $30,000 car?

Down Payment

Because you've paid for part of the car with it, it lowers the amount of money you need to borrow and thus lowers your monthly loan payment. As a general rule, you should pay 20 percent of the price of the vehicle as a down payment. That's because vehicles lose value, or depreciate, rapidly.

What's the smartest way to pay for a car?

The best way to pay for a car balances affordability and cost, often meaning a mix of significant cash (down payment) and a small, short-term loan (e.g., 3-5 years) to build credit without excessive interest. Paying all cash avoids interest but can be a huge upfront cost, while paying all cash at a dealer might cost more than if you financed. Leasing offers lower monthly payments but you don't own the car. 

How to pay off a 6 year car loan in 3 years?

How Can I Pay Off My Car Loan Faster?

1. Refinance Your Car Loan.
2. Make Biweekly Payments.
3. Make Extra Lump-Sum Payments.
4. Avoid or Cancel Add-On Expenses.
5. Adjust Your Budget.

What is too expensive for a car payment?

A car payment is too much if it exceeds 10-15% of your monthly take-home pay, with total vehicle costs (payment, insurance, gas, maintenance) ideally staying under 20-25%; a common benchmark is to keep the payment itself below 15% of your net income to leave room for other essential expenses like housing and savings, following guidelines like the 50/30/20 rule. 

Why Dave Ramsey says not to finance a car?

“Cars, trucks, RVs, boats, and everything that has motors and wheels go down in value,” Ramsey wrote recently. “NEVER finance them, because they go down in value and you get stuck in them. Don't let debt trap you in something that's losing value every day. Save up, pay cash, and own it outright.”

Is a $900 car payment too much?

Yes, $900 a month is likely too much for most people's car payments; financial experts suggest your total car expenses (payment, gas, insurance, maintenance) shouldn't exceed 20% of your net income, with the payment itself ideally under 10-15% of your take-home pay, meaning you'd need a substantial income (around $5,000-$9,000/month after taxes) to comfortably afford $900 monthly. 

Has anyone ever had a 900 credit score?

No, you generally cannot have a 900 credit score in the U.S. because the standard FICO and VantageScore models cap at 850 (a "perfect" score); however, older or specialized scores like FICO Auto or Bankcard can reach 900, but these aren't what most lenders use for general credit. While an 850 score is extremely rare (less than 2% of people), it's the highest achievable, indicating excellent creditworthiness. 

Can I get $50,000 with a 700 credit score?

What is considered a good CIBIL score to apply for a ₹50,000 personal loan? A CIBIL score of 710 and above is generally considered to be good when applying for a ₹50,000 personal loan. However, a higher score typically increases the likelihood of a loan approval and favourable interest rate.

What is the 2 2 2 credit rule?

The 2-2-2 credit rule is a guideline for lenders, especially for mortgages, suggesting borrowers should have at least two active credit accounts, open for at least two years, with at least two years of on-time payments, sometimes also requiring a minimum credit limit (like $2,000) for each. It shows lenders you can consistently manage multiple debts, building confidence in your financial responsibility beyond just a high credit score, and helps you qualify for larger loans. 

What's a realistic car payment?

A reasonable car payment is generally 10-15% of your monthly take-home pay, but ideally, your total car expenses (payment, insurance, gas, maintenance) shouldn't exceed 20% of your net income. A common guideline is to keep the payment itself under 10% of your take-home pay for a comfortable budget, factoring in other costs like fuel and insurance, which can add significant expenses. 

Is a 60 or 72 month car loan better?

Better interest rate: A 60-month loan will typically have a lower interest rate than a 72-month loan because the risk for lenders isn't as high. (Lenders consider long-term loans to be riskier because the longer it takes to pay off the loan, the more opportunity exists for the loan to not be paid back in full.)

What car can I afford making $3,000 a month?

Take-home pay is the amount you make each month after taxes, so if you bring home $3,000 monthly after taxes are deducted, it's likely you can comfortably afford a $300 car payment.

What is the #1 most sold car?

The number one selling car depends on the timeframe, but globally for recent years (2024), the Tesla Model Y and Toyota RAV4 compete for the top spot, while the Toyota Corolla is the all-time best-selling model. In the U.S., the Ford F-Series (trucks) consistently dominates as the best-selling vehicle overall, with the RAV4 leading SUVs and Camry leading sedans.
 

How many Americans are 100% debt free?

Around 23% of Americans are debt free, according to the most recent data available from the Federal Reserve.

What is a reasonable car payment in 2025?

The average monthly car payment for new cars is $748, while used cars had a slightly lower payment of $532, according to Experian's quarterly State of the Automotive Finance Market report. 43.27% of vehicles financed in the second quarter of 2025 were new vehicles.