You wouldn't consider depreciation a cost in addition to your car payment, depreciation is on your balance sheet and your car payment is on your cash flow. You

You wouldn't consider depreciation a cost in addition to your car payment, depreciation is on your balance sheet and your car payment is on your cash flow. Your balance sheet would factor in only your interest payments and depreciation, the principal on your loan is irrelevant there because it's being realized as equity. The average monthly payment for a used car being $500 does not mean that somebody on a low income has to pay $500 to own a car. I'd imagine that the average price paid for a cup of coffee is around $5, but that doesn't mean that that's what coffe costs. It just means that a lot of people pay way more than neccessary for coffee. Similarly- lots of people drive cars that are bigger, faster, newer, more luxurious, and more capable then necessary. The bare minimum cost to own a vehicle is not $500 a month by any means- my 5000 dollar car has lasted me 6 years now as an example. Even if we consider it is now worth half of it's original value, that comes in at about $70 a month in depreciation. Hardly unaffordable