If you’re looking for cheap monthly installment cars, several new vehicle models in 2025 offer loan payments that are well below the national average. The average monthly payment for a new car in Q1 2025 was $745, while used cars averaged $521 per month[1]. However, certain new cars and many used vehicles can be financed with payments considerably lower than these benchmarks, especially if you opt for a longer loan term or have a good credit profile.
Examples of new cars with low monthly payments (based on common loan assumptions):
- 2025 Nissan Versa: Around $281 per month
- 2025 Hyundai Venue: Around $323 per month
- Other compact sedans and subcompacts may also qualify for payments under $400 depending on lender and terms
These offers typically assume excellent credit, current market interest rates, and a standard down payment. Used cars often provide even lower monthly payments, but the interest rates for used car loans are generally higher than those for new vehicles[2].
How to secure the lowest monthly payment:
- Choose a less expensive new or used car
- Shop for longer loan terms (up to 84 months, but understand total interest will increase)
- Make a larger down payment to reduce the amount financed
- Compare interest rates from multiple lenders, including banks, credit unions, and online services
- Check for special deals such as 0% APR financing on select models[4][7]
- If you have bad credit or lower income, consider lenders who specialize in subprime auto loans, as some accept incomes as low as $1,500/month[5]
Use online auto loan calculators to estimate your monthly payment in advance by factoring in the vehicle price, down payment, interest rate, and loan term[6]. This will help you compare vehicles and financing options to find the best fit for your budget.