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The current US average car payment is $570/month... but Edmunds advises top rated sedans and SUVs can be bought for much less, and the Honda Insight makes the list.

Assuming a 4.6% APR, 72 month loan term, and $4k down payment, cars with a MSRP below $29k meet the monthly payment target of <$399 per month. Based on this criteria, Edmunds recommends the following:
  • 2021 Kia Forte EX ($24,055)
  • 2021 Honda Insight EX ($25,765)
  • 2021 Kia K5 GT ($26,355)
  • 2021 Mazda CX-5 Touring ($28,110)
 

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The current US average car payment is $570/month... but Edmunds advises top rated sedans and SUVs can be bought for much less, and the Honda Insight makes the list.

Assuming a 4.6% APR, 72 month loan term, and $4k down payment, cars with a MSRP below $29k meet the monthly payment target of <$399 per month. Based on this criteria, Edmunds recommends the following:
  • 2021 Kia Forte EX ($24,055)
  • 2021 Honda Insight EX ($25,765)
  • 2021 Kia K5 GT ($26,355)
  • 2021 Mazda CX-5 Touring ($28,110)
Ok I'm stunned.. $570 is the average car payment?!!!

$25k is an out the door price for an Insight EX.
 

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Ok I'm stunned.. $570 is the average car payment?!!!
The valuation analysts at Kelley Blue Book today reported the estimated average transaction price for a light vehicle in the United States was $38,723 in September 2020. New-vehicle prices increased $940 (up 2.5%) from September 2019, while raising $23 (up 0.1%) from last month. Average New-Vehicle Prices Rise 2.5% Year-Over-Year in September 2020, According to Kelley Blue Book
Yep, when the average transaction price for a new vehicle is now around $38k.
 

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A $570 car payment roughly equates to a $30k loan at 3.5% apr for 60 months. So for a $38k out the door purchase, people are borrowing $30k. Take out to 72 month in the article and your borrowing roughly $36k on a $38 transaction! Your negative equity the moment you drive it off the lot!

Personally I think that's an insane amount of money to borrow for a $38k car but I suppose it's in the eye of the beholder of what is a large payment.
 
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