Why is owning a car so expensive?

Owning a car is expensive due to a combination of high purchase prices (from supply chain issues/tech), soaring insurance (more severe accidents/tech), rising financing/interest rates, and increased maintenance/repair costs (complex features, labor shortages), all compounded by general inflation and ongoing fuel/tax/registration fees, making the total monthly/annual cost exceed even the sticker price over time.

Why is car ownership getting so expensive?

Auto repair costs have outpaced new-vehicle prices and overall inflation. More recently, she says, maintenance and repair costs have soared. Tariffs play a role; so does higher demand for parts, as people keep their cars longer to delay the cost of replacing them.

How much should I spend on a car if I make $60,000?

On a $60,000 salary, you can generally afford a car in the $20,000 to $30,000 range, with total monthly car expenses (payment, insurance, gas, maintenance) ideally staying under 15-20% of your take-home pay, which might be around $300-$450 for just the payment, though some say up to 35% of gross income for the total vehicle price. Key factors are your credit score, down payment (aim for 20% to avoid PMI and reduce interest), loan term (shorter is better), and other debts. 

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.

Can I afford a $500 a month car payment?

- Low income or heavy debt: $500 is high; consider cheaper vehicle or larger down payment. - Middle income with moderate expenses: $500 is reasonable if it leaves room for emergency savings and retirement contributions. - High income with low other obligations: $500 is low-to-moderate and likely comfortable.

Why Car Ownership Is Getting So Expensive | CNBC Marathon

What credit score is needed to buy a $25,000 car?

To get a $25,000 car loan with good terms, aim for a Prime credit score (661+ FICO/VantageScore), securing lower interest rates, though approvals start around 580-620 (Fair/Subprime), but with much higher rates, while the absolute minimum can be as low as 450 for desperate lenders. A higher score (720+) gets you better deals, while scores below 660 mean higher costs over the loan's life, with averages closer to 675 for used cars and 730 for new. 

What is the crappiest car ever?

There's no single "worst car," but common contenders for the title include the AMC Gremlin (awkward design, handling issues), Chevrolet Vega (engine/rust problems, quality control), Renault Dauphine (terrible performance/reliability in the US), and the Trabant (symbolized communist-era poor quality), alongside others like the unreliable Ford Pinto, flimsy Reva G-Wiz, and quirky Triumph TR7. These cars are often cited for poor engineering, build quality, performance, or design failures that made them notoriously bad.
 

What's the average payment on a $30,000 car?

For a $30,000 car, your monthly payment could range from around $500 to over $700, depending heavily on your down payment, loan term (e.g., 60 vs. 48 months), and interest rate (APR), with longer terms and higher rates increasing payments, while a larger down payment (like 20%) lowers them significantly. For example, with a $3k down payment, 5.8% rate, and 60 months, it's about $520; with a good rate on a 4-year loan, it could be $733. 

What is the 1 most reliable car?

There's no single "number 1" reliable car, but Toyota, Lexus, and Subaru consistently rank highest for overall brand reliability in recent reports (2024-2025), with specific models like the Toyota Camry/Corolla, Honda Civic, and Lexus RX/GX often cited as top individual choices for dependability, longevity, and low repair frequency. 

What hidden car costs should I consider?

Beyond the monthly payment, you'll also face years of variable expenses like car insurance, gas, maintenance and taxes, which can spike without warning. By considering these costs before buying a new or used car, you'll be better prepared for the financial ups and downs of hidden car ownership costs.

What credit score do I need for a car?

You don't need a minimum score to get a car loan, but a FICO score of 661 or higher (Prime) gets you the best rates, while scores below 600 (Subprime/Deep Subprime) mean higher interest rates and tougher approval, though options exist for all levels, especially with used cars. Lenders look at your DTI, income, and down payment too, but better credit unlocks lower APRs and better terms. 

How to afford a car on low income?

Subprime loans are designed specifically for individuals with poor credit or limited financial means. Due to the perceived risk, these loans typically feature higher interest rates, but they provide an essential pathway to vehicle ownership for buyers who may otherwise be denied traditional loans.

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.”

Are cars becoming unaffordable?

Yes, cars are becoming increasingly unaffordable, with prices soaring past inflation due to supply chain issues, focus on high-margin SUVs/trucks (trimflation), higher production/tech costs, and rising interest rates, making even used cars tough for middle-income families and leading to record loan delinquencies. The average new car now costs over $50,000, and entry-level models under $30,000 are disappearing, pushing many Americans out of the market.
 

What is the cheapest month to buy a new car?

The cheapest months to buy a new car are typically October, November, and especially December, due to year-end model clearances and salespeople/dealerships racing to meet annual quotas, with great deals also found at the end of the first quarter (March/June) and during holiday weekends like Memorial Day. Waiting until the final days of the year offers the most significant discounts as dealers clear out outgoing model years (e.g., 2025s to make way for 2026s). 

What is a normal car payment in 2025?

A normal car payment in 2025 averages around $748 for new cars and $532 for used cars, but this varies greatly with credit score, loan term (often 70 months or longer), interest rates (averaging 6-7% for good credit), and vehicle price. Expect higher payments if you have lower credit or choose more expensive SUVs/trucks, with some new car payments exceeding $1,000 monthly, while experts suggest keeping payments under 10% of your income. 

Is it better to buy new or used with a loan?

It may be easier to secure a loan for a new car than it is for a used car, and new car loans often come with lower interest rates. Used cars can be a good fit if you're on a budget and they generally cost less to insure; however, interest rates for used car loans are often higher than for new car loans.

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 is the poor man's Ferrari?

The most common "poor man's Ferrari" is the Toyota MR2 (SW20 generation), nicknamed the "baby Ferrari" for its mid-engine layout, sleek styling reminiscent of Ferraris like the 308/348, and accessible price. Other cars sometimes called this include the Pontiac Fiero, Volvo P1800 (for its looks/GT feel), and even budget modern options like certain Hyundai Tiburons or the Ferrari California itself (as a more affordable entry).
 

What is the most unreliable car brand?

There's no single "most" unreliable brand, as it shifts yearly and by study, but MG, Rivian, Chrysler, Land Rover, Jaguar, and some European luxury brands (Mercedes, Audi) frequently appear at the bottom of reliability surveys from sources like J.D. Power and Consumer Reports. New brands like Rivian struggle, while established ones like MG (in the UK) and Chrysler/Jeep often face issues with electronics or build quality. 

What is the #1 car in the world?

The #1 car depends on the metric: the Tesla Model Y was the world's best-selling model in 2024/2025 by volume (over 1 million units), while the Toyota Corolla is the best-selling nameplate of all time. For luxury/prestige, it's subjective but brands like Rolls-Royce dominate expensive one-offs, while the Kia EV9 won World Car of the Year 2024 for overall excellence.
 

What is a good downpayment for a $25,000 car?

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. If you make a small down payment or no down payment, you can end up owing more on your auto loan than your car or SUV is worth.

Does pre-approval hurt my credit score?

Credit card pre-approval typically doesn't affect your credit scores because it usually involves a soft credit inquiry. Also known as a soft pull or soft credit check, a soft inquiry doesn't impact your credit scores. It's simply a way for issuers to determine whether you may qualify for their credit card offer.

Will my credit score go down if I pay off my car?

Yes, paying off your car loan can cause a small, temporary dip in your credit score because it closes an account and affects your "credit mix" (having different loan types), but it's usually short-lived, and your score often rebounds as it shows you're debt-free, improving your overall financial health and debt-to-income ratio long-term. The drop is generally a few points and temporary, lasting a few months, especially if you have other credit accounts.