$500/mo for a modest car? Wow, people on here have a warped sense of finances. $500/mo is a lot of car. My brand new car with all the bells and whistles is $380/mo and I'm very happy with it.
Instead of a new car, I could've used my down payment to buy a used car instead.
To clarify, I'm not saying $500 for just the car, but $500 for the car payment, gas, insurance and savings for future maintenance.
I think $500, when you factor in all of that, is a fairly modest car.
My wife and I have a Honda Fit that is paid off (I would call this a pretty modest car), and when a car reaches a certain point in its life, you may'll have more maintenance to pay for.
Instead of a new car, I could've used my down payment to buy a used car instead.