Calculate your payments

Buying a car is one of the most important financial decisions of your life. It's also one of the largest, with some people spending more on their car than they do on buying a house.

Your first step in buying a car is to take stock of your current financial situation and figure out how much you can afford to pay each month for a car payment. That will give you an idea of the price range that makes sense for you .

Next, write down what you need from the vehicle. Is this going to be your daily driver? You'll probably want to avoid something racy or impractical. Are you going to have kids in the near future? You'll want a family-friendly vehicle. Do you have pets? You might want a hatchback or wagon rather than a sedan or coupe if they're going to be spending time in the car.