How to pick the right car
With so many models on the market and new designs being introduced all the time, it鈥檚 hard to know where to start when choosing a car. It鈥檚 so confusing that many people just buy the same model again 鈥斅爄f they liked the last one 鈥斅爄gnoring new and better choices. Others take recommendations from friends or buy something that catches their eye with聽sleek design or clever advertising.
There鈥檚 a much better way to pick the right car, a practical approach that聽also allows room for some fun.
Here鈥檚 an overview of the process:
Let鈥檚 take a closer look at each step.
Figure out what you need
Be honest now: how often do you really go to the mountains or pull a trailer or carry lumber? If you try to get something聽that does everything, you鈥檒l end up buying too much car and pay dearly for your next vehicle.
In life, there are needs and wants. When picking a car, start by understanding . If so, move on to narrowing down what kind you need. Write out those needs on a piece of paper. If you follow the list, your needs will lead you to the right car.
If you have a big family and need room for six passengers, your choice could be a no-brainer. If you鈥檙e single and like to go off-roading on the weekend, it鈥檒l be obvious you need a four-wheel-drive vehicle.
But maybe you鈥檙e like a large section of the population: You want a car to be a kind of Swiss Army knife that prepares聽you for anything. In that case, prioritize. Usually, you鈥檒l find there鈥檚 one thing you need 80% of the time. For example, most people use their car for commuting or picking up the kids from school. Write the primary use at the top of that 鈥渘eeds鈥� list and view聽the rest more as聽鈥渨ants.鈥�
Set your budget
Unless you鈥檝e got a pile of cash lying around, you鈥檒l probably need to take out a . It鈥檚 smart to keep your total monthly car expenses聽鈥斅爌ayment,聽insurance, fuel, maintenance, repairs, registration 鈥� to 20% or less of your monthly take-home pay. Use a 聽to find out what purchase price will provide a monthly payment that comfortably fits into your . Avoid the temptation to stretch the loan past 60 months (five years) just to buy a more expensive car.
Use a car finder聽tool
Many automotive websites 鈥斅爏uch as Autotrader or Kelley Blue Book 鈥斅爃ave tools that allow you to filter your search by price, vehicle category and even options. Build a target list of five cars to research by reading reviews from automotive experts and owners.
Even if you鈥檙e firmly convinced that you know what you want, it鈥檚 important to look at competing models. The market is so crowded these days, it鈥檚 easy to overlook a model that might better suit your needs than your initial top pick. Don鈥檛 rush this part of the process, because once you get a new car, you鈥檒l have to live with it for years.
If you have trouble comparing competing cars, you can use the Edmunds Compare Cars tool, which presents features and specs in an easy-to-view table for side-by-side comparison. Based on your research, narrow the field to three cars.
Test driving: the feel of the wheel
Car salespeople like to say, 鈥淭he feel of the wheel will seal the deal.鈥� There鈥檚 a lot of truth in this, and yet you might be hesitant to test drive your choices. It鈥檚 a hassle schlepping to a car lot and fending off eager sales聽staff.
Here鈥檚 an easy way to get the job done:聽Set aside a morning, preferably on a聽weekday, when car lots are empty, and call a dealership鈥檚 internet department. Tell the internet manager you want to schedule a test drive, but you won鈥檛 be buying on the spot聽because聽you鈥檙e still comparing different models. Drive your three target cars back-to-back so all your impressions are fresh in your mind.
Review your research and make a decision
After your test drives, leave the dealership. If you鈥檙e still undecided, go back to the car finder and pull in a new candidate. But if your聽decision is obvious, you can move on to the deal-making phase.
Whether you鈥檙e aware of it or not, your emotions and intuition will play a part in your choice. There鈥檚 nothing wrong with that 鈥� have a good time. But don鈥檛 let your feelings run away with you. Cover the practical bases first, and then open the door to the fun factor. Then you鈥檒l have a car that you enjoy and serves your needs.
Philip Reed is a staff writer at NerdWallet, a personal finance website. Email: preed@nerdwallet.com. This article first appeared at .
