FI showroom red and grey logo
MenuMENU
SearchSEARCH

Buyers Getting Smarter, But Still Unprepared, Says New Study

Consumer are more cautious about spending and are conducting more research before making major purchases in the wake of the economic downturn, but a new study reveals that they still have a lot to learn.

by Staff
June 28, 2010
2 min to read


McLEAN, Va. — Consumer are more cautious about spending and are conducting more research before making major purchases in the wake of the economic downturn, but a new study reveals that they still have a lot to learn.

In its seventh year, Capital One’s Rule of the Road survey found that 70 percent of first-time car buyers surveyed did their research, compared prices and various makes and models before making a final decision to purchase their car. Fifty-three percent of first-time car buyers who responded to the survey also developed a budget to help them determine what they could afford and how they would make payments or manage their monthly expenses. And of those who set a budget, 88 percent said they stuck to it when they purchased their vehicle.

Ad Loading...

The study was conducted between May 13 to 19 by Braun Research, a Princeton, N.J.-based opinion research firm, which interviewed 700 U.S. residents ages 18 and over. It pointed out that despite first-time car buyers conducting more research before a purchase, these buyers are still having trouble factoring in long-term secondary costs of vehicle ownership.

More than half (63 percent) of those surveyed thought they accurately calculated the true cost and expenses of buying a vehicle, yet nearly half of respondents say they did not factor in their calculations the cost of maintenance and repairs (47 percent) or registration and parking (45 percent). Of those surveyed who got a loan to purchase their car, nearly half (48 percent) do not know the interest rate. And of the 61 percent who researched different models and types of vehicles before making their purchase, only one-third of respondents said they checked their credit score.

In terms of financing options, the survey found that most first-time car buyers were uneducated in this area, with most (59 percent) reporting that they had not had anyone discuss financing options with them and how auto financing works. Before purchasing their vehicle, more than half (54 percent) of those surveyed did not know that you could go online to compare financing options, while 57 percent of respondents  did not know that you could go online to apply for a loan for a new vehicle. Only 20 percent researched financing options online and 18 percent went online to research different lenders.

More Auto Finance

A fan of $100 bills sitting on a white envelope
Auto Financeby Hannah MitchellAugust 12, 2026

July Was Hot for Auto Borrowers

Credit proved readily available for many, but most loans left buyers in negative territory, Cox Automotive said.

Read More →
stacks of coins, a calculator, paperwork, and a pair of glasses in the background, text Lender Experience Drives Dealer Decisions, F&I and Showroom
Auto Financeby Lauren LawrenceAugust 12, 2026

Dealer Lender Preferences Revealed

When lenders provide consistent, fast service, their overall satisfaction scores with dealers greatly improve, according to JD Power research.

Read More →
man sitting at desk using a calculator
Auto Financeby Lauren LawrenceAugust 10, 2026

Auto Refi Savings Surge

Consumers with 84-month auto loan terms who refinanced saved the most on monthly payments, according to a new report by auto refinancing provider Caribou.

Read More →
Ad Loading...
Tiny toy car in front of small stacks of coins
Auto Financeby Hannah MitchellAugust 5, 2026

Subaru Enters Lending Business

The automaker follows other brands in adding captive financing in the U.S., and says the move will strengthen its position here.

Read More →
Man climbing ladder in front of mountain landscape.
Auto Financeby Lauren LawrenceAugust 3, 2026

Positive Equity Reaches Record High

Mainstream vehicle owners who bought a car seven years ago are likely to have positive equity when trading in for a new vehicle, according to second-quarter Edmunds data.

Read More →
Photo of document next to calculator and inkpen
Auto FinanceJuly 20, 2026

Dealerships Are Paying the Price for Extended Car Loans

Growing negative-equity scenarios mean such lengthy terms should be addressed in a forward-looking way to make them work for the dealer and the consumer down the road.

Read More →
Ad Loading...
silver car in background with hand in front holding out a set of keys, Trade-In Trouble, F&I and Showroom
Auto Financeby Lauren LawrenceJuly 20, 2026

Trade-Ins in Negative Equity Reach New Heights

As such trade-ins rise in frequency, so do monthly loan payment amounts and interest rates, according to second-quarter data compiled by Edmunds.

Read More →
Two men in suit jackets shaking hands in front of a new-looking white vehicle
Auto Financeby Hannah MitchellJuly 15, 2026

Auto Credit Plentiful

June numbers show lenders are readily granting access, including to risky borrowers, as consumers leverage themselves to take on high prices.

Read More →
Woman's hands holding an wallet empty of cash
Auto Financeby Hannah MitchellJuly 1, 2026

Automotive Consumers Sink Further in Debt

Most financing metrics hit records in the second quarter as more buyers locked themselves into long terms and high monthly payments.

Read More →
Ad Loading...
Three men smiling for headshots
Auto Financeby Lauren LawrenceJuly 1, 2026

Porsche Financial Services Shifts Structure

After 36 years with Porsche, the Financial Services Chief Financial Officer Konrad Riedl is retiring, and the department is realigning its management structure.

Read More →