Law expert reveals that one key question you should always ask before buying a car

Buying a car is a big decision especially in these economically trying times. A lawyer recently took to TikTok and talked about the one question that every car shopper should ask before sealing the deal. TikTok creator Money Lawyer Erika (@erikakullberg) posted a video in which she playacts a scenario between a car dealer and a prospective buyer. At first, the customer says that her monthly budget for a car payment is only $500, to which the dealer responds, “That’s on the low end. But for you, ma’am, we’ll make it work.”

In the video, the creator says that it's extremely crucial to ask,"'What is the total cost of ownership?'" She explains that when a dealer brings down the monthly cost, they simply stretch the payment term. "All the dealer did was stretch the payment term out, so you'll be paying the $400 a month for way longer than you would have paid the $500 a month, it's a trick to make it seem cheaper," she says, emphasizing why we must ask about the total cost of ownership.

Many took to the video to talk about how this is very basic and should be known by all. "Is this not common knowledge? We need to change what we teach in school," reads one of the top comments, while another user says, "never tell them what your monthly budget it. Negotiate the price, not the payment."

Others talked about how it's probably a better option to get it pre-approved by your bank or credit union before going car shopping. 

Calculating the total cost of owning a car is something that everybody does before shopping for a car. According to Kelley Blue Book, the average cost of buying a second-hand car in 2024 is somewhere around $25,540 while buying a new car can cost around $48,334, and while these look like a lot, the cost of cars have actually plummeted slightly since the end of the pandemic, when supply chain issues had increased the prices. 

Based on AAA's data, the average monthly cost of owning and operating a car in the US in 2024 is somewhere around $1,015, when the six cost categories depreciation, finance costs, fuel, insurance, government taxes and fees, and maintenance, repair and tires are taken into consideration, via Bankrate.

In order to calculate the total cost of car ownership, one can estimate the amount by looking into the factors like insurance, loan payments, fuel, taxes and fees, maintenance and depreciation. This can be made easier by storing receipts and other information of all financial transactions involving your car, which can help you get the cost accurately.  

For more such videos, follow (@erikakullberg) on TikTok.