With so many different vehicle models on the market, choosing the right one can seem like a daunting task. However, with the right approach and consideration, you can easily narrow down your list of options to the car that's best suited to your needs and budget.
How to Decide What Car to Buy
There's no single car, truck, van or SUV that's best suited for every driver, so it's important for you to understand your needs, budget and preferences to get a sense of what you're looking for.
It's also crucial that you research car brands, pay attention to features and compare new and used models. Finally, you'll want to test drive each vehicle you're considering to get a feel for the driving experience, visibility, comfort, noise level and other factors.
Assess Your Needs
Start by taking the time to think about the general features you need in a vehicle. Some of the factors to consider include:
- Family size: If you have children or you're planning to start a family soon, you may want a larger vehicle, such as an SUV or a van, for the extra space. However, if you have no kids and don't plan on having any, a smaller vehicle may be enough to suit your needs.
- Lifestyle: If you spend a lot of time outdoors, an SUV or even a truck may be more beneficial for cargo space and towing capacity. On the flip side, if your primary driving consists of your commute and errands around town, a smaller vehicle with better fuel efficiency—or even an electric vehicle—may make more sense.
- Location: If you live in an area with extreme weather fluctuations, including rain, snow and ice, you'll likely want a model with all-wheel drive capabilities. At the same time, if you live in a large urban area, a smaller vehicle may be more beneficial for maneuverability and parking.
- Environmental impact: If you're a strong believer in environmental conservation, you may prefer to focus your research on electric and hybrid vehicles.
It's also important to know where your needs and preferences may conflict. For example, if you really want an electric vehicle but also enjoy taking road trips, you'll need to consider the trade-offs associated with charging times.
Review Your Budget
As you begin to get an idea of the type of vehicle you want, it's important to evaluate your budget before moving forward. Start by determining whether you want to buy the car with cash, get a car loan or opt for a lease.
If you decide to use cash, your budget will be dictated by how much you have in savings. With an auto loan or lease, however, you'll need to know how much money you can afford to spend on a monthly payment.
You can do this by taking a look at your income and expenses over the past three to six months to get a sense of your cash flow. As you determine how much you can afford, it's critical that you also consider other important financial goals, such as saving for emergencies, your retirement fund and paying off high-interest debt.
Research Car Brands
There are several websites that offer expert reviews of different car brands, including Edmunds, U.S. News & World Report, MotorTrend and Car and Driver. Once you know what you're looking for and what you can afford, research some of the models that fit your criteria.
You can also read customer reviews, which can give you a better idea of what it's like to own the vehicle.
Review Key Features
As you research different models, pay attention to key features that are important to you. Some of the specifications you'll want to consider include:
- Fuel efficiency: Even if you're willing to sacrifice fuel efficiency for other features, miles per gallon will still have a direct impact on your budget. If you're looking at electric vehicles, you'll want to pay attention to the battery's range instead of fuel economy.
- Seating and cargo space: Look at how much space you and others will have in the cabin—including the number of seats—as well as the storage capacity in the trunk, hatch or bed of the vehicle.
- Towing capacity: If you plan to tow anything with your new vehicle, you'll want to make sure it has sufficient capacity to handle it.
- Drive type: Check to see if the car has all-wheel drive capabilities. If not, it can help to know whether it's front-wheel drive or rear-wheel drive. It's generally not recommended to buy a vehicle with rear-wheel drive if you live in an area with a lot of snow or rain.
- Dimensions: You'll want to make sure the vehicle you buy fits comfortably in your garage or other parking space. If you're used to driving a smaller vehicle, switching to a full-size SUV or truck can be a major transition, and you'll want to make sure you're ready for it.
- Safety features: Cars can offer a wide range of safety features, but some provide more than others. In particular, watch out for details like blind spot and lane departure warnings, adaptive cruise control, child safety locks, anti-lock braking, stability control, child seat anchors, backup camera, front and rear airbags and emergency braking assist.
- In-car entertainment: Check to see if the model has a media display with Android Auto or Apple CarPlay compatibility. If this is an important feature for you, consider the display size and connection type (Bluetooth or USB).
Consider New vs. Used Cars
Once you have a budget and know which model you want, consider whether it's better to buy a new car or a used one.
- New cars: New cars are more expensive than comparable used models, but they tend to have fewer maintenance and repair costs. They'll also generally qualify for lower interest rates on car loans. They usually come with manufacturer warranties for major mechanical issues that may arise. If you want to lease a vehicle, a new car is usually your best bet.
- Used cars: With a used car, you're usually paying much less out of pocket to buy the car. However, you'll want to consider maintenance and repair costs, as well as the possibility of a higher interest rate. While you can get a warranty for a used car, it typically isn't included without an extra charge.
Test Drive the Car
Now that you've narrowed down your list of options to a few models, visit one or more local dealerships and take a test drive with each one. No matter how much research you do online, nothing compares to the actual experience of driving.
As you test drive each model, pay special attention to your comfort level in the driver's seat, how the vehicle handles, how easy it is to control the climate, entertainment and lighting, the noise level in the cabin, the braking system and anything else that's important to you.
Build Your Credit Before Buying a Car
If you're planning to use an auto loan or lease for your next vehicle, it's important to make sure your credit is ready for the process. Although it's possible to get approved for a car loan even if you have bad credit, you'll have a better chance of securing a low interest rate with a higher credit score.
Start getting an Experian account to review your Experian credit report and FICO® Score☉ for free. Take time to evaluate your credit profile and identify any areas of concern. Then, take steps to improve your credit. While this process can take time, the interest savings can make the effort worth it.