When you see a vehicle advertised for a certain price online, what should that price actually mean?

According to recent guidance and enforcement activity from the Federal Trade Commission, the answer is becoming increasingly clear: the advertised price should be the actual price a consumer can pay to purchase the vehicle, excluding only charges the government requires the consumer to pay.

Buying a car can be exciting, but the process goes much more smoothly when you arrive prepared. Whether you are purchasing a brand-new vehicle, a used car, a truck, or an SUV, there are a handful of documents, pieces of information, and personal items that can make the difference between a quick, efficient transaction and an avoidable delay. Most buyers do not need to bring a thick folder of paperwork, but there are several things worth having ready before you head to the dealership.

Why would someone want to buy a car if they do not have a driver's license? In reality, there are plenty of legitimate reasons someone without a valid driver's license might need or want to purchase a vehicle. A parent may be buying a car for a child. Someone may be purchasing a vehicle for a spouse or caregiver to drive. A business owner may need another company vehicle even though someone else will operate it. A person may be temporarily unable to drive but still want to purchase a vehicle for future use. Others may simply want…

Buying a new or used vehicle should be exciting, but there is one part of the process that can occasionally catch shoppers off guard: paperwork. You may already know which vehicle you want, have your trade-in ready, and know approximately what monthly payment you are comfortable with, but if you arrive without the information or documents needed to complete the transaction, the process can take longer than expected. Fortunately, a little preparation can make buying a car much faster and easier.

How much car can I actually afford? It sounds like a simple question, but the answer depends on much more than the price printed on the window sticker. Your income matters, of course, but so do your monthly expenses, your trade-in value, how much money you plan to put down, the interest rate on your loan, your insurance costs, and how much financial flexibility you want to keep after the purchase.

How much should you spend on a car based on your income?

Some people say your vehicle should cost no more than 20% of your annual income. Others focus on keeping your monthly car payment below 10% or 15% of your take-home pay. Some buyers are comfortable spending significantly more on transportation, while others would rather spend less on a vehicle and put more money toward housing, retirement, travel, or other priorities.

The truth is that there is no single percentage that works perfectly for every household.

For millions of American households, owning more than one vehicle is completely normal.

One vehicle gets driven to work.

Another handles school drop-offs.

A truck pulls the camper.

An SUV carries the family.

An older car becomes the teenager's first vehicle.

A convertible or Mustang comes out when the weather is nice.

When shopping for a new or used vehicle, most consumers focus first on the vehicle’s price and expected monthly payment. However, another major factor can significantly influence the total cost of a purchase: the interest rate on the auto loan.

Auto loan rates do not remain the same from year to year. They rise and fall based on several factors, including inflation, economic growth, government policy, lender competition, and the overall financial environment. These broader changes are often described as part of an economic cycle.

Trading in your current vehicle should be an exciting step toward your next car, truck, or SUV. However, the process can feel more complicated when you discover that you owe more on your auto loan than your vehicle is currently worth.

This situation is known as negative equity, and it affects more drivers than many people realize. In the fourth quarter of 2025, 29.3% of trade-ins used toward new-vehicle purchases had negative equity. Among those upside-down trade-ins, the average amount owed above the vehicle’s value reached $7,214.

Buying a vehicle involves more than choosing a model and agreeing on a price. If you finance the purchase, you will also need to decide whether to add any protection products to the transaction.

Auto loan protection products are optional plans designed to reduce certain financial risks associated with owning or financing a vehicle. Depending on the product, coverage might help if your vehicle is totaled, requires a major repair, is damaged cosmetically, or becomes unaffordable because of a qualifying illness, injury, job loss, or death.