09/22/2026
Thinking about buying a home soon? Before you start house hunting, or shopping for a new car, there’s one number you need to pay close attention to: your car payment.
While buyers focus on interest rates and home prices, auto debt can quietly shrink your home-buying budget before you even tour your first property!
Here’s why: 👇
📊 The High Cost of Auto Debt: • Record Highs: The average new car payment is now $770/month (up nearly 30% since 2020 due to climbing prices and higher interest rates). • 1 Car Payment = 26% Less Buying Power: For a median-income household, a $770 car payment can drop your estimated home price ceiling from ~$530,000 down to $394,000. • 2-Car Households: Having two car payments can reduce your target home price ceiling by up to $271,000! • Hidden Costs: Rising auto insurance (+55% since 2020) and gas prices add extra squeeze to your total monthly budget.
💡 Quick Tips Before You Buy:
1️⃣ Get pre-approved FIRST before financing a new vehicle or starting your home search.
2️⃣ Calculate total vehicle costs (payment + gas + insurance + maintenance).
3️⃣ Keep auto debt low if buying a home is in your 1–2 year plan!
Ready to find your dream home or figure out your buying power? We’re here to guide you every step of the way! Reach out to us today:
🏡 Ready to make a move? Let’s chat!
Stacey Smith
Broker & Realtor® | F.C. Tucker
📞 317-701-4713
📧[email protected]
🏦 Rhonda Sparger | Mortgage Loan Officer (NMLS ID #134702) 📍 Huntington National Bank – 14921 Thatcher Lane, Carmel, IN 46032
📞 317-686-5336
📧[email protected]
