When it seems like you’ve cut everything out of your budget and you’re still not saving any money, financial guru Clark Howard says take to take a look at what’s parked outside. The average new car payment in America has crept above the $500 per month mark for the fist time, settling in at $503, according to a recent study by Experian. And if that weren’t bad enough, the average length of a car loan now stands at 68 months

That’s a hefty price to pay, especially considering just how much money this eats up over time — not to mention the opportunity cost of not having this money freed up to save for retirement and take advantage of compound interest!

Clark says a good rule of thumb is to make sure your car payment is no more than 10-15% of your monthly income. If it is, you might want to switch your car for something with a lower monthly payment and have a little more wiggle room in your budget.