Steps to Finding the Right Car for You

by Philip Reed

How do you find the car that will exactly suit your needs for years to come? It just takes a little research and planning. The following steps will help you select, price, locate and test-drive the vehicle that is best for you. Then you can decide whether you want to buy a new car, lease a new car or buy a used car. This service is free.

Step 1. Assess Your Needs

As much as you might like to dream about what you want in a car, it's best to think more practically about your needs — not just at present, but in the future, too. 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: highway, surface streets, off-road?
• Will you drive in ice and snow?
• Do you have a long commute and, because of that, is fuel economy important to you?
• Do you need all-wheel drive?
• What safety features are important to you?
• Do you need a lot of cargo capacity?
• 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 no more than 20 percent of your monthly take-home pay.

Step 3. Compare Leasing and Buying

Leasing and buying each have pros and cons, and how you feel about these may help guide your decision on whether to lease or buy.

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.

Here are a few more factors to consider while deciding between leasing and buying:

Leasing

• You can drive a more expensive car for less money.
• You can drive a new car, with the latest technology, every few years.
• There are no trade-in hassles at the end of the lease.

Buying

• You have more flexibility to sell the car whenever you want.
• You can modify the car to your tastes.
• There are no mileage penalties if you drive a lot.
• In the long run, your car expenses will be lower.

If you are still unsure whether to lease or buy, let the numbers help you decide.

Step 4. Consider Other Cars in the Class

Have your mind — or heart — set on a specific car? Many shoppers do. But in today's ever-changing marketplace, there are always new cars hitting the showroom, and one that you've never even considered could be right for you.

If you already have a car in mind, you should still review other comparable vehicles in the same class to make sure you haven't overlooked an even better choice. You can do this by choosing the same vehicle type, as listed in our Car Finder tool, and setting the parameters that are important to you. Once you settle on a worthy prospect, you can easily check for detailed information on pricing, specifications (such as for the 2015 Ford Fiesta), features and road tests. You can also compare vehicles you chose to more easily contrast the car's features and specifications. If, on the other hand, you have no idea where to begin, you can consult the Best Cars section of our site. The New Car Buying Guides are handy here, too.

Step 5. Consider All the Costs of Ownership

Something shoppers often overlook when considering their next car is that one may be cheaper to buy but more expensive to own. Why? Even if two cars cost about the same to buy, one might depreciate faster or cost more to insure and maintain.

Before you commit to a car, you should estimate its long-term ownership costs. These include depreciation, insurance, maintenance and fuel costs. It can help you make a smart decision up front that can save you thousands of dollars over the life of the car.