By Amy Miller, AFC®

8 Things Every Car Buyer Should Know Before Shopping This December

Whether you’re buying your first vehicle or upgrading out of necessity, going in prepared can help you avoid costly mistakes and make a confident choice.

Buying a car is a major financial decision, especially in today’s auto market, where prices are high, loan terms are longer, and many families are struggling to keep up with payments.

Whether you’re buying your first vehicle or upgrading out of necessity, going in prepared can help you avoid costly mistakes and make a confident choice.

 

Here are 8 things every car buyer should know before stepping onto the lot:

1. Car prices are higher than ever.

The average new car now costs around $50,000, and payments for many buyers exceed $700–$1,000 a month. Understanding this reality helps set expectations before you begin shopping.

 

2. Long loan terms may seem helpful, but come with risks.

Loans stretched over 7–8 years lower your monthly payment but increase total cost and leave you upside-down longer, meaning you owe more than the car is worth.

 

3. Get pre-approved before you shop.

A pre-approval gives you a clearer idea of what you can afford and helps protect you from interest rate markups at the dealership.

 

4. Know your credit score and what rate you should expect.

Your credit plays a major role in your interest rate. Checking it in advance ensures you recognize a fair offer (and a bad one).

 

5. Focus on the total cost, not just the monthly payment.

Dealers may steer you toward a number that sounds manageable, even if it means stretching the loan or adding unnecessary products. Always calculate the full amount you’ll pay over time.

 

6. Watch out for add-ons you don’t need.

Service contracts, GAP insurance, and other extras can be useful, but often come with inflated prices. Review each one closely and decline anything that doesn’t fit your needs.

 

7. Take your time! Don’t let yourself be rushed.

Dealerships can be high-pressure environments. Review every line of the buyer’s order, ask questions, and pause before signing. It’s okay to walk away.

 

8. Preparation is your greatest advantage.

Before shopping:

  • Set a budget
  • Review your credit
  • Build savings for a down payment
  • Compare lenders
  • Research the car’s market price

A plan puts you in control—not the dealer.

 

A car is more than a purchase; it’s often a lifeline for work, family, and everyday life. With the right information and preparation, you can approach the process with confidence instead of stress.

If you’re planning to shop for a vehicle soon, don’t go in unprepared. Tune in to our latest Think Like A Saver podcast episode, where we sit down with consumer protection expert Erin Witte to break down what’s really happening in today’s auto market, and the steps you can take to protect yourself.

Listen now to Car Buying with Confidence featuring Erin Witte of the Consumer Federation of America.

 Your next car-buying decision could be one of the most important financial moves you make this year. Let us help you get there.

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