Affordability

• Before you shop for a car, determine how much you can afford to pay for it. If you plan to finance the vehicle, calculate your budget by going through your bills to determine how much you have left over to spend each month. The amount you have left over for your vehicle costs should cover your monthly car payment, gas costs and insurance policy. Secure a car loan before you shop. This way, you can set a price range based on your approval terms. Remember to include your state fees and taxes to your purchase price. Ask your state motor vehicle department or a dealer for exact purchase fees so you can avoid surprise charges.
  
  

Competitive Pricing

• You aren't likely to feel satisfied with your purchase if you later find out a neighbor or friend paid thousands less for the same car. Plenty of resources exist for consumers to gauge fair pricing. For new cars, visit the manufacturer's website to determine discounts, also known as rebates. Edmunds.com offers values for new and used cars, including the price you should aim to negotiate for a new car purchase. Use the Kelley Blue Book and NADA Guides website to establish a fair price for your purchase. Negotiate with a seller or keep shopping until you find a fair price.
  
  

Vehicle Reliability

• Avoid spending your money on a vehicle only to find out it needs expensive repairs. If pursuing a new car, find out how long the car will remain under factory warranty. During the time your car is under factory warranty, you won't have to pay for some repairs. If purchasing a used car, obtain a vehicle history report. Make an appointment with a mechanic to check the vehicle over, even if the car's history report looks good. A mechanic can offer information about the accident and maintenance history of the car and offer repair recommendations. JDPower.com offers complete reliability reports; review the car you intend to purchase to determine whether the car has a history of reliability issues.
  
  

Personal Preferences

• Some buyers may have a personal goal in mind for their next purchase. If you need a car with good gas mileage, research fuel economy. For other personal preferences, such as room, appearance, convenience features, acceleration or off-road capability, research vehicle specifications at the manufacturer's website or any used car appraisal guide. Test-drive a vehicle before you purchase to ensure it meets your expectations. Comparing various cars before you decide on which to buy can help you feel confident about your purchase, even down the road.