Critical Shifts:
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Drivers focus on monthly payments, ignoring total costs: While 70% know their exact monthly bill, 75% don't know their total interest and less than half know their APR.
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Financing regret is widespread: Driven by larger, longer loans, most drivers wish they had put more money down, shopped around for lenders, or chosen shorter loan terms.
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Coverage decisions stem from budget limits and misconceptions: Drivers skip add-ons like GAP insurance primarily due to upfront affordability, while 38% falsely believe standard auto insurance covers the gap if a car is totaled.
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According to Caribou’s 2026 Blind Spots of Car Ownership Survey, 75% of car owners can’t recall how much total interest they’re paying on their auto loan. Yet 38% say the total interest on their loan is higher than they expected.
Key findings from this new survey of 2,000 car owners reveal what they wish they’d known, from vehicle financing to the mundane repairs that have caught them off guard.
The monthly payment may be the most visible part of an auto loan, but many drivers lose track of other important details, including their APR, total interest and whether their loan includes added protection.
- 70% of drivers can recall their exact car payment without checking paperwork.
- Only 43% of drivers know their APR and just 25% can recall the total interest they’re paying over the course of the loan.
- 29% of drivers can’t recall if their auto loan includes a vehicle service contract/extended warranty. 29% don’t know if they have GAP insurance.
In hindsight, drivers say they’d change how they financed their vehicles.
Many drivers say they’d make different financing decisions, especially as they continue to feel the pressure from larger and longer auto loans.
- 47% said they’d put more money down, the most common change drivers would make.
- 33% said they’d shop multiple lenders before signing, the second-most common response.
- 25% of drivers said they’d choose a shorter loan term, compared with 17% who’d have chosen a longer one.
For many drivers who decline optional protection, the decision comes down to what they can afford rather than risk.
- Not being able to afford the extra monthly cost was the top reason for declining coverage, cited by 38% of drivers who skipped GAP insurance and 31% who skipped a vehicle service contract.
- A knowledge gap could also explain why drivers decline GAP coverage. 38% of drivers incorrectly believe their standard car insurance policy would automatically cover the difference if their vehicle is totaled or stolen and they still owe more than it’s worth.
“Drivers can recite their monthly payment to the dollar, but their APR, their coverage, and what the loan actually costs them sit in a blind spot,” said Simon Goodall, CEO of Caribou. “Most people set up their financing once and never look at it again, and that’s where the overpaying happens. Pulling up your loan and checking whether your rate is still competitive takes a few minutes. It can save you real money and give you peace of mind.”
