You’re pretty sure you need a new car, but it’s not just the price that scares you. Rather, it is a complex process of determining which the buy a car.
According to the car and the driver, there are over 400 different new models to choose from – not including finishes and other variations!
You don’t have time to study them all, but you still want to know that you have purchased the right vehicle at a reasonable price.
So how do you get the perfect car that fits comfortably into your budget?
1. Calculate your budget
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The quickest way to narrow down your model choices is to set an upper limit on what you can afford. It just so happens that the MU30 is pretty chic Vehicle availability calculator which will help you determine the exact budget in minutes.
In short, I recommend a 20/4/10 car financing ratio:
- Put at least 20%.
- Choose a period of no more than four years.
- Keep your total car payment (interest, principal, and insurance) below 10% of your gross income.
It means that if you earn $ 40,000 a year before taxes, your car budget is $ 4,000 a year, or roughly $ 330 a month.including insurance. With your 20% down payment and interest, you can afford a car for $ 12,000 or so.
You will now stretch a little to $ 14,000, but I highly recommend that your vehicle’s MSRP not exceed 35% of your gross annual income. This ensures that your vehicle never depletes your finances and you can drive stress-free.
Once you have a budget for the total manufacturer’s suggested retail price for your new car, you can start exploring specific models.
2. Determine your preferred body style.
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Then, let’s narrow down your choices by choosing a body type (sedan, truck, etc.). Here are some common pros and cons of each popular body style:
| Body type | pros | Minuses |
|---|---|---|
| Sedan | Driving pleasure, manual option, flooded with used car market | Small cabin, small trunk |
| Hatchback | Driving pleasure, manual variant, crossover-style cargo space | Less used options than sedan equivalents |
| Crossover | High driver position, good cargo space, more economical than SUV | Less driving pleasure than a sedan or hatchback |
| SUV | High seating position, excellent cargo space, off-road capability | High MSRP, bad MPG, usually not very fun to drive |
| Truck | Excellent cargo space, retain their value, off-road performance | Simple cabs, high MSRP, excellent ride quality |
From personal experience, the body style that my friends, family and customers under 30 are most satisfied with is the hatchback. The hatches, as they are fondly called, are shorter than sedans, so they are easier to park and more fun to drive. Plus they offer triple cargo space for most sedans (45 square feet versus 15).
If you don’t know which body style you like, choose a few. Remember; there is no rush in this process. In fact, the more cars you choose and the more test drives you take, the more chances you will have of getting the car you like.
Once you have a rough idea of which one to three body styles you like, it’s time to browse the top rated models in each category.
3. Browse reliable models with the best ratings.
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Then it’s time to start browsing specific models to find the ones you like.
Browse popular sites like Edmunds for the best cars in each category this is a great place to start. Keep in mind, however, that many car rating sites do not take long-term reliability into account as much as they should. At best, they give the car a reliability rating equal to its 0-60 performance and ride quality.
And don’t force me to start with “initial quality” ratings – they are Bolognese. Opened packaging of milk of excellent quality initially …
Don’t forget about reliability
It is my personal opinion that reliability should always be in the top three categories of any new vehicle., if not v the most important. This is because the difference between a reliable and unreliable vehicle is measured in thousand dollars.
For example: The 2015 Mercedes C-Class may have a nicer cabin than the 2015 Lexus IS 350, but the real cost of ownership® in five years is as much as $ 7,000 higher than the Lexus.
Can I compensate for reliability with an extended warranty?
Extended warranties won’t protect you either. Aside from the additional costs of $ 1,200 to $ 3,000, third-party guarantees are filled with more holes than Wisconsin cheese, so you’ll have a tough time getting the amounts owed.
More details: Car Dealership Secrets: Four Questions to Ask Before Buying an Extended Vehicle Warranty
If in doubt, check out Reddit.
Another great place to find the best cars within your budget is the Reddit subreddit (page). r / whatcarshouldibuy… You can post your budget and top 5-10 anonymously to get feedback from mechanics, professionals, owners, and others who may point to red flags or suggest alternatives.
4. Test drive!
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The most important and overlooked step in the car buying process is testing, testing, testing!
Test drives are free, simple and absolutely require No financial commitments on your behalf. You will be surprised to know which cars you love more than others, and your # 1 choice could be overthrown!
So where should you schedule your test drives?
Avoid scheduling test drives at the dealership whenever possible. You will jump over more hoops than Evil Knievel just to get in the car and they will constantly call and email until you give them money.
More details: Carmax, Carvana, dealers, private sellers: where to buy the next car?
Consider setting up multiple test drives at the same time
Better to schedule multiple test drives at your local Carmax. The # 1 national used car retailer offers quiet, pressure-free test drives, and you can drive up to five of your listings in a row in one day. Best of all, your Carmax partner is really ready to answer financial questions and make sure you don’t travel to Canada; otherwise, they politely leave you alone with your thoughts so you can focus on the car.
5. Get an insurance quote.
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After test drives, try to narrow down your choices to five or less, ideally to three. If you’re struggling to choose between the finalists, let me suggest a tie-break: how much would you pay for insurance?
I recommend getting an insurance quote as one of the last steps in the car buying process, because it doesn’t make sense to collect five insurance quotes for a vehicle that you end up not liking during a test drive.
You can find the best car loan for your needs in our article: Best car loans – where to find the best rates…
Summary
With hundreds of options available, choosing the car that’s right for you and your lifestyle can seem like a daunting task at first. But you’ll be surprised how quickly you narrow down your choices – and how satisfying the process can be.
In the process of buying a car, patience is rewarded; never let anyone rush you through this. Take your time, enjoy the exploration and have fun with test drives. In the end, a few extra hours you spend will lead to a happier honeymoon with your new car.