Picking a Car

• Determine what you need in a car. Your needs could include anything from how many passengers you expect to carry to how often and how far you'll be driving the car. For example, you'll want something that gets good gas mileage if your everyday commute to work or school is a long one.
• New or used? Many of us want our first cars to be brand new—however, new cars tend to be much more expensive when compared to used cars with low mileage. Depending on your needs, you may be able to find a used car that is relatively inexpensive.
• Test drive. Drive the cars you're interested in in as many driving situations as possible. Take them out on the highway and in city traffic, if you are able. You'll get a feel for how each car performs in a variety of situations, and you won't be surprised down the road.

Researching Cars

• Read up on safety ratings for each make, model and year of each car you're interested in.
• Request a vehicle history report to find out if the vehicle is salvaged, has been in an accident or has had odometer changes.
• Research cars online with our Auto Research Center. You can find car values, obtain reviews and order a vehicle history report. You can also search dealer inventories and request price quotes.

Paying for Your Car

• Consider the true cost of owning a car. The true cost of owning a car includes more than just the price of the car. Add in estimated costs of insurance, monthly parking, gas expenses and the cost of routine maintenance in addition to the cost of the car, loan payments or a down payment. Definitely avoid purchasing a car that drains your funds, leaving you unable to afford these other costs.
• Pay for the car in full. If you've saved money or have assets available and can afford to pay for a car in full, you will own the car free and clear. Many people don't have the funds to pay for a car in full, so they pay for some and finance the rest, which is a loan.
• Getting an auto loan. The optimal way to finance your car is to pay for a portion of the cost up front (down payment) and then finance the rest. You can finance your car by taking out a loan from a financial institution or through the dealership. Regardless of where you take out a loan, check out our online calculators to figure what you can expect for monthly payments. For instance, for a $10,000 five-year loan at 6.00% APR*, you could expect to pay approximately $193.00 a month in payments. If you have little or no credit history established, you can ask someone with solid credit to cosign the loan for you.