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Step 1
Consider how best to match your car's dimensions with your everyday needs. Which kind of car will accommodate a dog? Or three young kids? Or just you and your partner? Perhaps you haul heavy loads or have to carry bulky equipment. Will you be traveling long or short distances? Do you need a daily runner for short errands or face a lengthy commute? All these factors will affect your choice.
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Step 2
Determine how much you can afford. Work out your financial outlays before stepping into a dealership by calculating the monthly payments at Edmunds.com's monthly payment calculator, and figure out how much of a deposit you can afford. Get an estimate from several dealerships if you plan to trade in your current vehicle or work out its value at Kelly Blue Book's car value calculator.
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Step 3
Think about the type of weather you drive in. Do you drive in the mountains or countryside or by the beach? Whether you're likely to face snowy conditions or a potentially flooded country road or merely enjoy glorious sunny days along the coast will determine the choice of an SUV or a convertible.
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Step 4
Work out your priorities. Maybe you would like to cut back on gas's impact on the planet and your pocketbook, in which case a hybrid-electric vehicle may be best for you. Perhaps you want a big truck to impress your friends, like a Toyota Tundra or an F-150, or even a dapper little fashion model that packs style and performance into one package like a VW GTi. A car is often one of the most expensive purchases a buyer will make in her life, so having that special feeling each time you drive it is very important.
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Step 5
Determine how long you will keep the car. Will you trade it in for a new model after a year or do you want something that holds its residual value well in the long term? Perhaps you want a new model in three years, in which a lease could be the better option. Study automotive trends and decide if the car that you've set your eyes on would make an eye-catching buy when you plan to sell it, and work out resale values at Cars.com's residual value calculator.
