Average Car Payment Is $738/Month: 7 Models To Consider When You Only Have $400

Commitment to Our Readers

GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.

20 Years
Helping You Live Richer

Reviewed
by Experts

Trusted by
Millions of Readers

According to LendingTree, the average monthly car payment for new vehicles is $738 — higher than it’s ever been. Leased and used vehicles have also gone up on a year-over-year basis, with used cars costing $530 a month on average.

If you need to buy a car but only have about $400 a month to spare, these figures might seem unreasonably high. And when you account for expenses like car insurance, gas and maintenance, the idea of purchasing a vehicle might seem close to impossible.

“It’s difficult to find vehicles for under $400 a month these days, but not impossible. Buying a vehicle for under $400 a month requires a lot of research and a bit of compromise on a few things. You might need to sacrifice some, but you don’t need to give up reliability with these vehicles,” said Scott Lieberman, founder of Touchdown Money.

Here are some vehicles that have a typical monthly car payment of about $400 a month, according to financial and automotive experts.

2024 Hyundai Santa Cruz

• KBB price: Starting at $26,900
• Loan term: 88 months (7.3 years)
• Interest rate: 7%
• Estimated monthly car payment: $392

“The 2024 Hyundai Santa Cruz is a dynamic sport adventure vehicle that combines modern technology and rugged capability,” said Joyce Gutierrez, automotive expert at 4WheelOnline. It’s powered by a 2.5-liter four-cylinder engine and offers a 22 city/26 highway EPA rating.

“The Santa Cruz features Hyundai’s HTRAC All-Wheel Drive system, which provides confident handling and traction in various driving conditions,” she continued. “Customers can [also] take advantage of a cash offer of up to $2500 in savings.”

2024 Ford Maverick

• Ford price: $25,410
• Loan term: 72 months (6 years)
• Interest rate: 6%
• Estimated monthly car payment: $421

The 2024 Ford Maverick is versatile, powerful, and offers solid fuel efficiency with an estimated 42 city/33 highway MPG rating.

“Beyond its efficient powertrain, the Maverick has practical features that enhance its versatility,” said Gutierrez.

Depending on the model, you could get LED bed lighting for better visibility, extra storage space, and various smart features.

2024 Honda Civic

• Edmunds price: $23,950
• Loan term: 72 months (6 years)
• Interest rate: 7%
• Estimated monthly car payment: $408

“Known for its reliability, fuel efficiency, and low maintenance costs, the Honda Civic is a solid choice for budget-conscious buyers,” said John Lin, owner of JB Motor Works in Philadelphia. “You can often find certified pre-owned models with low mileage that fit comfortably within your monthly budget.”

The 2024 Honda Civic gets up to 33 MPG in the city and 42 MPG on the highway. It also offers 158 to 180 horsepower and a continuous variable transmission.

2024 Mitsubishi Outlander Sport

• Mitsubishi price: $28,345
• Loan term: 84 months (7 years)
• Interest rate: 6%
• Estimated monthly car payment: $414

“The Mitsubishi Outlander Sport is a compact crossover SUV with a compelling combination of advanced safety features, impressive fuel efficiency, and versatile cargo space,” said Gutierrez. “One of the standout safety technologies in the Outlander Sport is the Forward Collision Mitigation system.”

This system relies on radar sensors to detect potential frontal collisions and can apply the brakes automatically to prevent incidents from occurring.

The Outlander Sport also comes with Mitsubishi’s All-Wheel Control system and gets 23 MPG in the city and 29 MPG on the highway. If you’re looking for a vehicle with plenty of cargo space, this is a good option to consider.

2024 Hyundai Elantra

• KBB price: $21,625
• Loan term: 72 months (6 years)
• Interest rate: 6%
• Estimated monthly car payment: $358

“If you’re looking for a bit more style and technology, the Hyundai Elantra offers a lot of bang for your buck,” said Lin. “With sleek designs and modern features, you can find newer models that fit within your budget.”

This model gets up to 32 MPG in the city and 41 MPG on the highway.

2024 Toyota Corolla

• KBB price: $22,050
• Loan term: 72 months (6 years)
• Interest rate: 6%
• Estimated monthly car payment: $365

“Toyota is synonymous with reliability,” said Lieberman. “The Corolla offers both standard and hybrid models, which mean major fuel savings. It’s available for under $23,000, which means $400 per month is very possible.”

“The Toyota Corolla has a reputation for longevity and low operating costs,” added Lin. “Like the Civic, you can find great deals on certified pre-owned Corollas that won’t break the bank.”

This vehicle gets an estimated 32 MPG in the city and 41 MPG on the highway.

2024 Kia Forte

• Edmunds price: $19,990
• Loan term: 60 months (5 years)
• Interest rate: 6%
• Estimated monthly car payment: $386

“The Forte offers space for five and ample trunk space, plus some of the best in-car technology available with the infotainment system,” said Lieberman. “At $20,000 MSRP, it’s by far the easiest to get under $400 a month.”

When it comes to fuel efficiency, this vehicle isn’t too shabby either. It gets an estimated 30 MPG in the city and 41 MPG on the highway, meaning you could see more fuel savings.

Consider All Car Ownership Costs 

The monthly car payment is just one expense to consider when buying a vehicle, and even that can vary widely based on your loan term, interest rate, down payment and whether you’re trading in another vehicle to offset the costs of the new one.

Besides all of that, calculate expenses like car insurance, fuel and annual maintenance and repairs. Certain costs, like insurance, depend heavily on where you live, your driving history and your age. Depending on your state, you could also be subject to specific sales tax or title, registration and other fees.

If you’re trying to lower the overall costs, do some research before buying anything. See if you can save up some money for a down payment to lower the purchase price — and reduce how much you need to borrow. Also, speak with the dealership about any cash incentives or see if you can negotiate the price to fit your budget.

Share This Article: