Selecting the Car That’s Right for You

Before you rush out to the local car lot to buy a car, take the time to carefully consider what you're looking for in a car. Following these ten steps will help ensure that you're happy with your purchase.

Step 1: What kind of car do you need?
If you examine your needs rather than wants, you will quickly discover what the right car is for you.

Step 2: How much can you afford?
Establish a realistic monthly payment that will fit into your budget. A rule of thumb is your total monthly car payments shouldn't exceed 20 percent of your monthly take-home pay.

Step 3: Should you lease or buy your next car?
A lease requires little or no money up front and offers lower monthly payments. But when the lease ends you are left without a car and a need to replace it. Buying a car is more expensive initially and the monthly payments are higher. But at the end of the loan, you will own a car you can still drive or sell.

Step 4: Have you considered all vehicles in that class?
Today's market is filled with great products. Most shoppers have difficulty keeping up with all of the vehicles manufacturers introduce and the changes they are making to their older vehicles, so it's important to do your research. Use Internet sites like <a href="http://www.edmunds.com/" target="_blank">Edmunds.com</a> or <a href="http://www.cars.com/" target="_blank">Cars.com</a> to research all your choices before you hit the showrooms.

Step 5: Have you considered all of the costs of ownership?
Here is an often overlooked fact of car ownership: one car might be cheaper to buy, but more expensive to own. Before you commit to one car, you should estimate the long-term ownership costs of the vehicle you are considering. These include depreciation, insurance, maintenance and fuel costs.

Step 6: Research options.
By completing steps one through five, you should now have a good idea about what car will work for you. Maybe there are a few cars that fit your criteria. It's time to narrow it down.

Step 7: Schedule an appointment for a test drive.
It's a good idea to make your initial contact with a dealership by phone before going there in person. Call the Internet department (sometimes also called the fleet department) and ask if the car you're looking for - in the right color and trim level - is actually on the lot.

Step 8: How to test drive a car.
The goal of a test drive is to experience - as closely as possible - the same type of driving conditions the car will be used for after purchase. A new car is a big investment; make sure you spend enough time really looking at it. And then, consider one last thing: your intuition. If you are uneasy about this car, follow your instincts.

Step 9: After the test drive.
After the test drive, you should leave the car lot. Why? Because you will probably need to drive other types of cars at other dealerships. It's a good idea to do all of your test driving in one morning or afternoon. Driving the cars back to back will help you uncover even minor differences, which will lead to a more educated purchase decision.

Step 10: Getting ready for the buying cycle.
At this point you should have considered all the cars in the class that interest you. You should have a good idea what you can afford. You should know if you want to buy or lease your next car. You should have test driven your top choices. Now it's time to narrow your choices down to one car and make a deal.