A $100,000 car is undoubtedly an expensive vehicle, but there are some situations when you either want one or need one (such as if you have a large family and need a large SUV with three rows of seating and tons of towing capacity).
If you have the money in your bank account and can pay cash for such an expensive vehicle, then there's nothing wrong with buying one as long as you aren't compromising other important financial goals to do it. But, most people don't just have that much sitting around in a savings account to pay cash for a car.
So, if you buy a $100,000 car, just how much would you spend on it if you took out a loan to make the purchase? Here's what the monthly payments on a $100,000 car would look like.
This is what you'd spend on a $100,000 car
At the end of 2022, the average APR on a new financed car was 6.5%, per Edmunds. But the interest rate you would pay now might differ from this amount. Both the interest rate and the length of your auto loan repayment term determine what your monthly payments would be.
The table below shows what the monthly payments and total interest costs would be on a $100,000 vehicle, assuming you put 10% down ($10,000) and borrowed $90,000 to buy it.
| Loan term | 5.00% interest rate | 6.5% interest rate | 8.00% interest rate |
|---|
| 4 years | Per month: $2,072.64
Total interest: $9,486.55 | Per month: $2,134.35
Total interest: $12,448.60 | Per month: $2,197.16
Total interest: $15,463.82 |
|---|
| 5 years | Per month: $1,698.41
Total interest: $11,904.66 | Per month: $1,760.95
Total interest: $15,657.20 | Per month: $1,824.88
Total interest: $19,492.53 |
|---|
| 6 years | Per month: $1,449.44
Total interest: $14,359.96 | Per month: $1,512.89
Total interest: $18,928.34 | Per month: $1,577.99
Total interest: $23,615.40 |
|---|
| 7 years | Per month: $1,272.05
Total interest: $16,852.35 | Per month: $1,336.45
Total interest: $22,261.74 | Per month: $1,402.76
Total interest: $27,831.78 |
|---|
Data source: Author's calculations.
As you can see, the payments are pretty high -- even if you pick a loan with a long repayment timeline and even if you get a pretty low rate. Since you should typically try to keep your transportation costs to about 10% to 15% of monthly income (including loan payments and auto insurance), you'd need to make a good amount of money to be able to afford a car that comes with a $100,000 price tag.
How to keep your car loan costs down
If you do decide to borrow for a $100,000 car, you can try to reduce the monthly payments and total interest expenses you get hit with by:
- Making as large of a down payment as you can
- Improving your credit score to help you qualify for the most affordable rate
- Shopping around for your loan to get the best financing
What you don't want to do, though, is stretch out your payoff time unnecessarily, as this significantly increases total costs and you could also end up owing more than the car is worth, which isn't a great financial position to be in.
Choose the shortest loan term you can reasonably afford, get the best loan rate and terms that you can, and make sure you can still do other important things with your money before moving forward with buying such an expensive car.
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FAQs
Buying a $100K car on a 60 month loan will cost you $2500 or so per month after you factor in sales tax, interest, registration fees, insurance, maintenance, etc.
How much do you need to make to afford a $100,000 car? ›
In that case, you need to consider groceries, utilities, and other household expenses. To afford a $100,000 car, it's probable you need to make $300,000 a year conservatively after taxes. For this example, we use our car payment calculator and approach it using the price of the car of $100,000.
What would monthly payments be on a 100 000 loan? ›
Assuming principal and interest only, the monthly payment on a $100,000 loan with an APR of 6% would be $843.86 on a 30-year term and $599.55 on a 15-year one.
What is the monthly payment on a $10,000 dollar car? ›
Example 1: A $10,000 loan with a 5-year term at 13% Annual Percentage Rate (APR) would be repayable in 60 monthly installments of $228 each. The actual payment amount and year-end balance will vary based on the APR, loan amount, and term selected.
What is a good down payment for a 100k car? ›
A down payment between 10 to 20 percent of the vehicle price is the general recommendation. But if you can afford a larger down payment, you can save even more money on interest payments over the life of the loan.
What is a realistic monthly car payment? ›
Many financial experts recommend spending no more than about 10% to 15% of your monthly take-home pay on an auto loan payment. Daniel Robinson is a writer based in Greenville, N.C. with expertise in auto insurance, loans, warranty options and more.
What car can I buy with a 100k salary? ›
Keeping that in mind, here are some vehicles to check out if you have around a $100,000 annual salary.
- Genesis G70. Have you seen the 2025 Genesis G70? ...
- Audi A3. If you want an Audi, but don't want to spend at the brand's higher end, check out the 2025 Audi A3. ...
- 2024 Honda Ridgeline. ...
- 2024 Alfa Romeo Giulia. ...
- Tesla Model 3.
To apply this rule of thumb, budget for the following: 20% down payment: Aim to make a 20% down payment on your new car. 4-year repayment term: Choose a repayment term of four years or less on your auto loan. 10% transportation costs: Spend less than 10% of your total monthly income on transportation costs.
Is 100k a lot for a car? ›
A $100,000 car is an expensive vehicle, but there are plenty of people who purchase cars in this price range. The amount you'll pay each month for a $100,000 car will be determined based on what interest rate you qualify for, with higher rates leading to larger payments.
What credit score is needed for a 100K loan? ›
You'll generally need a good to exceptional credit score, generally between 670 and 850, and a steady income to get a $100,000 personal loan.
A $100,000 mortgage comes with a monthly payment around $840. Your lender will look for income in the $28,000 range to make that monthly payment, assuming you don't have debt already from a car payment or student loan, for example.
How long does it take to pay off a $100,000 loan? ›
How long does paying off $100K in student loans take? Although the standard repayment plan is typically 10 years, some loans and repayment plans have longer terms, so you could be repaying for 20 or even 30 years.
What is a good down payment for a $10,000 car? ›
It's good practice to make a down payment of at least 20% on a new car (10% for used). A larger down payment can also help you nab a better interest rate.
What is a good credit score to buy a car with no down payment? ›
Boost Your Credit Score
Your credit score is crucial to determine your eligibility for a no down payment car loan. Most lenders require a FICO credit score of at least 680 before you can qualify. If your credit score falls below 680, improve your credit score before you apply to help you qualify in the future.
Is a 500 dollar car payment too much? ›
An affordable car payment would be one that doesn't exceed $600 a month, based on the rule of thumb that your car payment shouldn't be more than 15% of your take-home pay. If you take out a 60-month car loan at 8% APR, you should aim to take out a car loan of less than $30,000.
What is 100k a year monthly paycheck? ›
If you make $100,000 a year, your monthly salary would be $8,333.87.
What car can I afford with a 40k salary? ›
on the price of a car. is not to exceed 35% of your gross income. That means if you make $40,000 a year, the cars price should not exceed $14,000. If you make $80,000, the cars price should be below $28,000. And at 150 k salary, that means your max car price should be 50 2500.
What is the payment on a 72 month 1.99% car loan for $60,000? ›
The monthly payment on a $60,000 car loan with a 1.99% interest rate over 72 months is $854.77.
