Buy your first car
Before you shop, decide what you need from a car and what it can cost after you bring it home.
Before you look at listings
- Think about the trips the car must handle: your commute, passengers, parking, and distance.
- Plan for insurance, fuel, maintenance, and registration. The loan payment is only part of the monthly cost.
- For a used car, read the Buyers Guide and arrange an independent inspection. A vehicle history report cannot replace the inspection.
Source: FTC: Buying a used car
The four steps
- Step 1Set a monthly budget for your first carAdd the payment, insurance, fuel, and upkeep to see what fits after other bills.
- Step 2Compare the loan, not just the paymentWould a smaller payment keep you in debt longer?
- Step 3Check the used-car deal before signingWhat should you check before you sign?
- Step 4Budget for ownership costsWill the car still fit when uneven bills arrive?