How to find the right car for you

web-site Mar 3, 2022

Step 1. Assess Your Needs

The "right car" depends on who you are and what you expect from a car. Some of us like to make a statement with our cars. Some like to go for spirited drives on weekends. In those cases, practicality tends to take a back seat to how the car makes you feel.

But for those who need a vehicle for daily duties, functionality should trump flash. Here are some practical considerations to keep in mind:

How many passengers do you need to carry?
What type of driving do you do? Is it primarily highway, surface streets, off-road?
Do you have a long commute and, because of that, is fuel economy important to you?
Do you need all-wheel drive?
What are your must-have features? Think backup camera, leather seats, Apple CarPlay, etc.
What safety features are important to you? Do you want blind-spot monitoring, lane departure warning and automatic emergency braking, for example?
What cargo capacity do you need?
Will you be using children's car seats?
Will you be doing any towing?
How much garage or parking space do you have?

Step 2. Set Your Budget

Unless you're paying cash for your car, you'll need to think about financing your purchase or lease. How much can you really afford to allocate toward a car payment each month? The general rule is that your monthly new-car payment should not exceed 15 percent of your monthly take-home pay. A used car will be less expensive, but the same rule should apply. If you're looking to lease, aim for a monthly payment that's less than 10 percent of your take-home pay. You'll also want to factor in an additional 7 percent of your monthly income to cover fuel and insurance costs. Knowing your budget beforehand will help you when negotiating your next car or truck.

Not sure what kind of vehicles fall under this monthly payment? Take a look at the Edmunds affordability calculator, which lists vehicles that fall into the price range you've predetermined. Keep in mind that the prices on the results page will change based on the trim level, options, taxes and finance fees.

Step 3. Decide If You Want to Lease or Buy

Leasing and buying each have pros and cons, and how you feel about these may help guide your decision on which route to take.

For example, a lease requires little or no money down and offers lower monthly payments. But when the lease ends, you have no car and will need to go shopping again. On the other hand, buying a car is more expensive initially, and the monthly payments are higher. But when you pay off the loan, you will own a car that you can drive for as long as it runs.