Your Best Bets for Cars Costing $400 vs. $650 a Month
Whatever your income level, there's probably a car out there whose features suit your needs. The question is their
According to Experian’s State of the Automotive Finance Market report, the average monthly loan payment on cars is $532 (used) or $748 (new). Actual costs vary quite a bit, depending on factors like loan term, credit score, loan amount and interest rate. If you’re looking to get a car that fits your (potentially smaller) budget, these are some of your options.
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Cars That Cost $400 a Month
The cost of owning a car isn’t solely dependent on your loan payment, but that’s a good starting point.
As per the FRED, the average automobile loan rate hovers at around 7.5% regardless of loan length. Using that as a benchmark and assuming a six-year term, you’d need to look at vehicles costing less than $26,000. The monthly payment for these would be about $400 or slightly more.
Kelley Blue Book names the autos below as some of the best vehicles that fit in this category:
2026 Kira Seltos ($25,285 MSRP)
2026 Hyundai Elantra ($23,870 MSRP)
2026 Toyota Corolla ($24,320 MSRP)
2026 Hyundai Elantra Hybrid ($26,695 MSRP)
2026 Toyota Corolla Cross ($26,485 MSRP)
2026 Chevrolet Trailblazer ($25,095 MSRP)
2026 Chevrolet Trax ($23,495 MSRP)
2026 Nissan Sentra ($23,845 MSRP)
Getting a lower interest rate or a longer term could reduce your monthly loan payment and open up your options. The same goes for having a down payment that reduces the overall purchase price.
Cars That Cost $650 a Month
But what about if you can comfortably afford $650 a month? Using the same 7% APR and six-year term puts you in the range of vehicles costing $38,500 or less.
According to Car and Driver, some options around this price point include:
2026 Honda Civic Si ($32,690 MSRP)
2026 Hyundai Elantra N ($36,345 MSRP)
2026 Tesla Model 3 ($38,630 MSRP)
2026 Toyota Prius PHEV ($35,070 MSRP)
2026 Volkswagen Gold GTI ($35,865 MSRP)
Other Costs To Own a Car
Your monthly payment is one of the most important factors in car ownership, but it’s far from the only one. Other things you might have to pay for, which can increase your base monthly payment, are:
Car insurance
Maintenance and repairs
Registration fees (annual)
State fees
Sales tax
Some of these fees vary heavily based on where you live and your driving habits. But take car insurance as an example. The national average cost of an auto insurance policy is $189 per month. It’s cheapest in Vermont, which a full coverage policy costs around $121 monthly.
And then there’s fuel costs. AAA currently lists the national average gas price on regular fuel as $4.11 per gallon. On a 12-gallon tank, that’s over $49 to completely fill up at the pump. Do this even twice a month and you’ve added nearly another $100 to your monthly costs.
Being aware of these costs and their ranges can help you budget accordingly, as well as choose a vehicle that suits your needs without stressing you out financially.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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