According to the Consumer Federation of America, high car prices are creating a financial emergency in America. With new car prices averaging nearly $50,000 — and 20% of new car buyers paying $1,000 or more for their monthly car payment — it’s no surprise that the total level of auto debt in America has reached a whopping $1.66 trillion. Be Aware: I’m a Mechanic: These Are the 5 Most Expensive Cars To Maintain Over Time Explore More: 6 Hybrid Vehicles To Stay Away From in Retirement The consequence of all ...

They're not allowed to make misrepresentations about a car's price, and they must give buyers clear monthly payment information. Effective July 30, 2024, dealerships also cannot charge for add-ons that don't offer an actual benefit, based on the FTC’s Combating Auto Retail Scams Trade Regulation Rule [4]. These protections may help consumers, but only to a point.Yet, car dealerships do have to follow certain rules.In a 2024 survey by KPA [2], 76% of Americans said they don't trust car dealerships to be hone ...

Core Insights - Car prices and interest rates remain high, leading buyers to opt for longer loan terms to manage monthly payments [1] - The average amount financed for new vehicles reached an all-time high of $42,388 in Q2 2025, with nearly 20% of buyers agreeing to monthly payments of $1,000 or more [2] Financing Trends - 22.4% of new vehicle shoppers chose an 84-month or longer loan term in Q2 2025, an increase from 20.4% in Q1 2025 and 17.6% a year earlier [1] - The average down payment decreased to $6,433 in Q2 2025, down from $6,579 a year ago [2] Long-Term Loan Considerations - Longer loan terms may lead to higher overall interest costs and increased risk of owing more than the car's worth due to depreciation [3][4] - Buyers are advised to consider total interest costs and potential maintenance expenses associated with longer ownership [4] Alternatives to Long-Term Loans - Options to lower monthly payments without extending loan terms include purchasing lightly used vehicles, increasing down payments, and shopping around for better financing rates [5]