When buying a car consider:
- Price: Use an auto loan calculator to determine the loan amount and interest rate you can afford, as well as your maximum loan amount.
- Budget: Plan your budget, whether using a spreadsheet, pencil and paper or online tool to ensure you have the monthly funds available for your new auto payment and additional costs relating to an auto like maintenance and registration.
- Insurance: Consider what your insurance needs will be - Car Insurance; GAP Insurance, which pays for the "gap" between what you owe and what your vehicle's worth in case of an accident; Mechanical Breakdown; or Disability Insurance.
And remember to factor insurance into your overall monthly payment.
Start narrowing down the vehicles you’re interested in buying by checking:
- Safety: view vehicle safety records from the National Highway Traffic Safety Administration
- Fuel Economy: see side-by-side comparisons at fueleconomy.gov
- Price: get an idea of what vehicles cost with the NADA Pricing Guide, a trusted resource for information on new and used cars.