6 Biggest Money Mistakes When Buying a Car, According To ‘The Car Mom’ and Rachel Cruze
Written by
Emily Fowler
Edited by
Jenna Klaverweiden
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Buying a car, whether it’s a first set of wheels or the latest in a long line of vehicles, can feel like navigating a financial minefield.
In a recent YouTube video, personal finance expert Rachel Cruze sat down with Kelly Stumpe, better known as “The Car Mom,” to discuss some major mistakes people make when they’re buying a car.
Recognizing these six mistakes upfront can help make car buying smarter and less costly.
Test Driving Too Soon
One of the first red flags is walking into a dealership before being ready to buy. According to Stumpe, buyers often go in with no intention of purchasing and walk out with a new car because they got swept up in the sales experience.
Her advice is don’t bring a trade-in, don’t bring a partner, and don’t test drive until the budget and plan are locked in. People need to have that “Walk away, I need to think about it” feeling, she explained.
Car dealerships can often instill a sense of urgency to try to get people to buy, but thinking about the purchase ahead of time is beneficial. “Remember that you are the one with the final say, always. If you’re feeling steamrolled, don’t be afraid to walk away,” Carol Pope, a staff writer and car insurance agent, told LendingTree.
Letting Emotions Drive the Decision
Cruze and Stumpe also warned against letting emotions override logic.
A high monthly payment might feel justifiable at first when the car is new and exciting. But several years down the line, when the car is scratched, stained and no longer fun to drive, that same car payment can start to sting.
Failing To Forecast Ownership Needs
A car that works today may not work two or three years from now. Stumpe told buyers — especially parents — to think ahead. Family size, lifestyle and cargo space needs often change before the loan is even halfway repaid.
Buyers who ignore that risk may end up in a vehicle that no longer fits and a loan they can’t easily escape.
Letting the Dealership Set the Budget
In another YouTube video, Stumpe shared how often buyers let the dealership define what’s affordable. She recommended flipping the process: decide on a payment first, then use a calculator to work backward and determine the actual vehicle price.
When setting your budget, U.S. News & World Report suggested finding a car where your monthly payment won’t be more than 10% of your take-home pay.
Skipping Salesperson Research
Stumpe also recommended buyers research the salesperson, not just the dealership. Instead of leaving it to chance, finding highly reviewed individuals in advance can make a big difference in avoiding pressure, upsells and financial missteps. For women especially, choosing who to work with can makes a big difference in feeling confident and respected during the process.
Not Having an Exit Plan
Long-term financing has become the norm, with many buyers opting for 72- or even 84-month loans. But most people want a new car well before that term ends.
Stumpe cautioned that without an exit strategy — whether it’s passing the car to a partner, selling privately or trading in — buyers often end up owing more on their car than the car is actually worth.
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