The Indicator from Planet Money · Monday, July 13, 2026
Kevin, a 23-year-old tax associate, is considering a new mid-size SUV costing between $30,000 and $60,000, with a $20,000 down payment. Sheila Bair calculates that a conventional loan for a new car could result in monthly expenses of around $1,000, and strongly recommends considering a used car instead.
“I was thinking like a mid-size SUV, something like a Toyota Highlander or a RAV4. Anywhere between 30 to $60,000. Uh, I have about $20,000 to put on down payment. And I'd probably have to lease or borrow the rest from, like a family member.”
“So for a new car, let's just say you do a four-year loan, 6% interest rate, $30,000. You're looking at easily a thousand dollars a month, all in for all the different expenses you're going to suffer.”
“A lot of people are going with used cars now. That's certainly what I recommend in my book. Have you thought about maybe buying a used car? They'd be less expensive than a new car.”