10 Steps to Finding the Right Car for You

Edmund.com's Buying Tips
By Philip Reed, Senior Consumer Advice Editor

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. In too many cases people choose a car for its styling or because it is a trendy favorite. Let your needs, not your wants, drive your decision.

Step 2: How much can you afford?
Regardless of whether you decide to buy or lease your next car, establishing a realistic monthly payment that fits into your budget is crucial. How much should this be? 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 will 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.

Advantages of Leasing	Advantages of Buying
You can drive a more expensive car for less money. You can drive a new car every few years. There are no trade-in hassles at the end of the lease.	When interest rates are low, is better to own a car rather than lease it. There are no unexpected mileage penalties for increased driving. There's more flexibility — you can sell the car whenever you want.

Step 4: Have you considered all vehicles in that class?
In today's crowded automotive marketplace, many consumers have difficulty keeping up with all of the vehicles available.

Step 5: Have you considered all of the costs of ownership?
Even if two cars cost about the same to buy, one can depreciate at a different rate or cost significantly more to insure or maintain. 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.
In the past, car buyers have been trained to visit local dealerships to find the car they want. In the Internet age, this is a waste of time and money. You can quickly cover more ground by shopping online. The only things you have to do in person are test-driving the car and sign the contract. And in some cases, you can even have the car delivered to you by the salesperson.

Step 7: Schedule an appointment for a test drive.
It's a good idea to make your initial contact with a dealership by phone or e-mail before going there in person. This can give you a sense of the sales style you will be dealing with throughout the buying process. Call the Internet department (sometimes 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 test-drive should replicate the conditions the car will be used in after you buy it. If you commute, drive the car in both stop-and-go traffic and at freeway speeds. Drive over bumps, take tight corners and test the brakes in a safe location. In short, ask yourself if you can live with this car for a number of years.

Step 9: After the test drive.
After the test-drive, you should leave the car lot. Why? You will probably need to drive other types of cars at other dealerships. It's a good idea to do your entire test-driving in one morning or afternoon. Driving the cars back-to-back will help you uncover differences that will lead to an 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.