7 Ways For Middle-Class Families To Actually Afford Their New Car Payments

Careful, purposeful financial planning is a must for any middle-class family, especially for one looking to add a new car payment to their monthly expenses.

“It is no secret that when a middle class family is trying to budget for a new car payment, they will come up with different strategies to solve their financial difficulties,” said Lyle Solomon, principal attorney at Oak View Law Group.

According to Solomon, proper planning requires an accurate budget identifying your current income and expenses. 

“This makes all the realm of their financial status clear, informing them about the possible amount they can pay for a car monthly,” said Solomon.

Here are some expert-backed suggestions on how to make this important financial step.

“First, carefully study how much money you make and spend each month,” said Blake Shaw, go-to automotive expert at All About Wheels.

“Find places you can spend less, like eating out, subscriptions, or other extra money you do not have to pay for,” said Shaw. “It’s important that your car payment, along with insurance and maintenance costs, does not take up more than 15 to 20 percent of your monthly income.”

He says you can get more information and make a plan that works best for your finances by using budgeting tools or talking to a financial advisor.

According to Solomon, you should think of the kind of transportation that is normally required by your household. 

This will help you filter out those cars which do not match your wants. 

“Some of the factors that need to be given importance are fuel mileage, dependability, safety options, and resale value,” said Solomon.

Once you figure out what kind of vehicle you would prefer, you can start reviewing prices and sampling from different sellers, whether from dealerships or direct sellers. 

“There are a lot of online budgeting tools and calculators that can help families figure out how to pay for a car payment,” said Shaw. 

He says you can compare car prices, financing options, and trade-in values on websites like Kelley Blue Book and Edmunds.

“This gives you a full picture of the costs that might come up,” said Shaw. “Apps for financial planning can also help you keep track of your savings and spending goals, which makes it easier to make changes to your budget when you need to.”

Rhett Stubbendeck, finance and insurance expert at Leverage Planning, often tells families that adding a new car payment isn’t just about numbers but about your lifestyle. 

“You’ve got to tweak things a bit but it’s totally doable. Let me share a simple trick we’ve used. We once had a family cut back on their weekly takeout.” said Studdendeck. “Just by cooking at home a bit more, they saved enough for their car payment.”

“Another thing we do at [my company] is looking at any extra money that comes in, like tax refunds or bonuses,” said Stubbendeck. “We call it the ‘Windfall Approach.’ Putting that unexpected cash toward the car payment takes off a lot of pressure.”

“You might be able to lower your monthly payment by taking out a loan with a longer term, but keep in mind that you will pay more interest over time,” said Shaw. “For example, look for cars that come with the best financing deals, like low APR or cash back.” 

“You could also make a bigger down payment, which would lower the loan amount and, in turn, your monthly payment. Checking out certified pre-owned vehicles can also give you the dependability of a new car at a lower cost.”

According to Stubbendeck, you should also consider smarter debt management. For example, refinancing a mortgage to a lower rate can free up cash for that car payment. 

“I believe it’s all about making your money work smarter, not harder,” said Studdendeck. “And here’s a key piece of advice I always give: understand your car loan. Sometimes, stretching the loan term out a little can lower those monthly payments, making the budget breathe easier.”