Saturday, December 7, 2013

How Much are Car Payments?

What is a Car Payment?

A car payment is the monthly payment on a loan to buy a car.  The monthly payment depends on 1) the cost of the car, 2) the interest rate, and 3) the term, or length of the loan.  The term of a car loan can be short, such as 3 years (36 months), or long such as 5 years (60 months).  The monthly payment will be much lower on a loan with a longer term.

How Much is a Car Payment?

Typical car payments on an older used car can be as low as $200 per month.  Car payments on a new car typically start at about $300 per month and can be as much as $700 per month or more for SUVs or luxury vehicles.

Recommended Reading:
How to Turn Your Car Payment into 1 Million Dollars




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