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Clever Dude
Clever Dude
Brandon Marcus

You Drive 5,000 Miles a Year — Does a $700 Car Payment Make Any Sense?

You Drive 5,000 Miles a Year — Does a $700 Car Payment Make Any Sense?
A $700 monthly car payment can represent a surprisingly high cost per mile for someone who drives only 5,000 miles a year. Low mileage reduces fuel use, but it does not reduce loan payments, insurance, or depreciation – Shutterstock

A $700 car payment looks very different when the odometer barely moves. Someone driving 5,000 miles a year could spend thousands on financing while using the vehicle less than 100 miles a week.

That does not automatically make the payment foolish. A newer vehicle can bring reliability, comfort, safety features, warranty coverage, and fewer repair worries. But low mileage changes the financial equation in a way buyers often overlook.

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