NAVIGATION

	Introduction
	Step 1: What kind of car do you need?
	Step 2: How much can you afford?
	Step 3: Should you lease or buy your next car?
	Step 4: Have you considered all vehicles in that class?
	Step 5: Have you considered all of the costs of ownership?
	Step 6: Research options.
	Step 7: Schedule an appointment for a test drive.
	Step 8: How to test drive a car.
	Step 9: After the test drive.
	Step 10: Getting ready for the buying cycle.
	Checklist

PHOTOS

(Enlarge photo)
Determine beforehand how much you can afford so you will know what kind of a car to search for. (Photo by Scott Jacobs)

Buying Articles

10 Steps to Buying a New Car
10 Steps to Buying a Used Car
10 Steps to Finding the Right Car for You
Confessions of a Car Salesman
How to Get a Used Car Bargain

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Buying Tips

10 Steps to Finding the Right Car for You

Step 2: How much can you afford?
By Philip Reed, Senior Consumer Advice Editor
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Regardless of whether you decide to buy or lease your next car, establishing a realistic monthly payment that will fit into your budget is a crucial first step. How much should this be?

A rule of thumb is your total monthly car payments — whether you own one car or more than one — shouldn't exceed 20 percent of your monthly take-home pay.

Check the Edmunds.com "Financial Calculators" to help you estimate what your monthly payment will be based on purchase price, down payment, interest rate and length of loan. Take the time to run the numbers now, before you go car shopping, print out the result and put this information into your car-buying folder. It will not only show you what you can afford, it will also help you control the numbers when you negotiate with a car salesman.

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More Buying Articles

10 Steps to Buying a New Car
The following steps will tell you how to locate, price and negotiate to buy the car you want.

10 Steps to Buying a Used Car
The following steps will tell you how to locate, price and negotiate to buy the used car you want.

10 Steps to Finding the Right Car for You
The following steps are devoted to helping you select, price, locate and test drive the vehicle that is best for you.

Confessions of a Car Salesman
What happens when a veteran automotive writer goes undercover as a car salesman? We sent our own Chandler Phillips to work at two Southern California dealerships and he came back to tell about it.

How to Get a Used Car Bargain Part One
In the second part of this series, we'll discuss Steps 3 and 4: how to locate your target cars and how to test drive and evaluate them.


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