Buying a car can be exciting, but the numbers on the contract can matter far more than the shine on the hood. With vehicle prices and borrowing costs still putting pressure on household budgets in 2026, shoppers need to recognize car buying red flags before signing anything. Experian reports that the average new-car loan carried a 6.35% interest rate in the second quarter of 2026, while used-car loans averaged 11.19%. Those rates can turn seemingly small financing mistakes into thousands of dollars in additional costs. Here are seven warning signs worth watching closely.
