Average New-Car Loan Payment Is $750, And Costs Are Rising – Suze Orman Urges Families To Consider If They Could Get By With One Less Car

Owning a car has never been cheap, but for many families, the monthly cost is quickly reaching a breaking point. According to LendingTree, the average new-car loan payment is now almost $750 per month, and that doesn't even include insurance, gas, and maintenance.

In a most recent blog, Suze Orman is urging families to take a hard look at whether they truly need every car they currently have — especially if money is tight.

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Car Costs Are Up — And Climbing Higher

Orman pointed out that owning a single car now costs many households close to $1,000 a month. That figure includes the nearly $750 car payments and insurance costs that are now around $200 per month — up sharply from $130 back in 2020.

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Unfortunately, insurance costs may keep rising. Insurify reports that premiums could jump another 19% this year if proposed tariffs on imported parts and materials are approved. Since many cars sold in the U.S. include foreign-sourced components, higher repair and replacement costs could push premiums even higher.

These added expenses come at a time when many Americans are already struggling. In 2024, vehicle repossessions and car loan defaults hit their highest levels since the Great Recession, according to Cox Automotive.

Why Suze Orman Says It's Time to Rethink the Second Car

Given these trends, Orman suggests that families feeling the financial strain should consider a major shift: cutting down to just one car — or even going carless if possible.

“If your house is feeling the stress of car ownership, I think it's time for a major rethink," she writes. "Especially if your household has more than one car.”

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Orman challenges families to explore whether they really need multiple vehicles every day. Could one person work from home part of the week? Is carpooling with a coworker or neighbor an option? Could public transportation help fill in the gaps?

These questions may seem tough at first, but Orman emphasizes that it's worth having the conversation. "I appreciate what a lifestyle change this may be, but sticking with something just because it is what you are used to is not a good enough reason to keep two cars," she says.

The Potential Savings Are Substantial

Cutting out a second car could save families $500 to $1,000 or more per month, depending on how much they're currently spending. Even if you occasionally rent a car or rely on ride-sharing services, Orman believes the financial benefits still outweigh the inconvenience for many households.

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She also encourages one-car families to go a step further and consider a car-free lifestyle, especially if they live in areas with reliable public transportation. Renting a vehicle for weekend errands or getaways may still cost less than owning and maintaining a car year-round.

Bottom Line: Rethink What You Really Need

As car ownership becomes more expensive, households may need to take a closer look at what's essential and what's just routine. While giving up a car may require some lifestyle adjustments, the monthly savings could offer much-needed breathing room.

"If you are feeling financial stress, how would you not jump at the chance to remove $1,000 or more in monthly spending?" Orman asks.

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