Buying a new car has never been more financially daunting. A 2025 analysis from Edmunds found that a record 19.3 percent of consumers who financed a new vehicle in the second quarter of 2025 committed to a monthly payment of $1,000 or more.

While it might be tempting to stretch your budget for the car you want, locking yourself into a high-cost loan can be a painful mistake. Before you sign, here are common car-buying missteps to avoid.

Buying a car you can’t really afford

There’s a difference between being able to buy something and being able to afford it. With an average new vehicle transaction price of approximately $49,000, it’s not uncommon to see buyers opt for extended 72-month or 84-month financing terms.

That shiny SUV might seem within reach thanks to flexible financing, but

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