5 Auto Loan Mistakes That Can Cost You in 2026

Buying a new or used car should feel exciting — not overwhelming. At Alcon Employees Federal Credit Union, we want to help you make confident, money-smart choices. If you’re planning to shop for a vehicle in 2026, here are five common car loan mistakes to avoid so you can save money and protect your budget.

1. Shopping Only by Monthly Payment

It’s easy to focus on what you can afford each month, but dealers can stretch your loan term or add extra fees to hit that number. A low monthly payment doesn’t always mean a good deal.

Tip: Look at the total cost of the car, not just the monthly payment. Always negotiate the price of the car, not the payment.

2. Rolling Old Debt Into a New Loan

If you still owe money on your current vehicle, rolling that balance into your next loan can leave you “upside down,” meaning you owe more than your car is worth.

Tip: Try to pay down your existing loan or wait until you have positive equity before trading in.

3. Signing Without Asking Questions

Car loans can include fees, add-ons, rate changes, or contract details you may not expect. If you sign too quickly, you might agree to terms that don’t work for you.

Tip: Don’t rush. Read the details and ask questions about anything you don’t understand. You deserve clear, honest answers.

4. Not Checking Your Credit Score First

Your credit score affects your rate and the type of loan you qualify for. Do not rely only on what the dealership tells you — their financing may not be your best option.

Tip: Get pre-approved with AEFCU before you shop. It helps you know your budget, compare rates, and shop with confidence.

5. Paying Too Much for Add-Ons

Dealerships often offer GAP coverage, extended warranties, or payment protection — but usually at high prices. As a credit union member, you can often get the same protections for much less through AEFCU.

Tip: Before saying yes to any add-on, check with us first. We can help you compare options and save money.

Member Tip:

Get pre-approved before you visit the dealership. You’ll know exactly what you can afford, protect your credit, and walk in with confidence.

Drive Smarter With AEFCU

Alcon Employees Federal Credit Union proudly serves Alcon employees, their families, and our local Fort Worth community. We’re here to help you borrow wisely, save money, and reach your goals in 2026.