How to determine the right car for your needs

Young couple looking at new cars at a car dealership

'Sedans are well-suited to commuting and city driving,' while 'SUVs work well for families, transporting and outdoor adventurers'

(Image credit: Westend61 / Getty Images)

So you need a new car. But which one? With hundreds of different car brands and thousands of models to choose from, you will certainly have no shortage of options when it comes to buying a car — though you may also encounter a bit of decision fatigue in the process.

By zeroing in on just a few key factors, however, you can quickly narrow down the options. Here’s how to ensure you find a car that is the right fit for you.

Decide on a realistic budget

If money is no object, skip this step and go ahead and get that convertible. For most of us, though, money is a major factor that influences the car we buy. To figure out how much you can afford to shell out, “take a few minutes to run down what you spend every month,” deducting costs like rent and groceries and contributions to savings from your total take-home pay, which will reveal “how much money you have left over and how much car you can afford,” said Edmunds, an automotive website.

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Based on that amount, work backward using one of the many car affordability calculators online. These calculators take into consideration your monthly target payment, alongside added costs like sales tax and registration fees — and, if you are taking out an auto loan, interest — to give you a defined price range to shop within. Some sites will even make suggestions on specific models.

Assess your lifestyle and driving habits

When it comes to a major purchase like a car, “being honest with yourself and thinking ahead will serve you well,” said U.S. News & World Report. This means ditching images of cruising around solo on a Saturday afternoon when, in reality, you are hauling kids to and from soccer games.

Think about what you are actually going to use your car for, and who is most likely to ride in it often. For instance, “sedans are well-suited to commuting and city driving,” while “SUVs work well for families, transporting and outdoor adventurers,” said NerdWallet.

Another major factor not to overlook is where you will be primarily using your car. “While a tiny subcompact might be a great solution in the city, it might not be a good choice for snowy mountains,” said U.S. News & World Report.

Evaluate fuel costs and efficiency

Even if you stay on budget for your car purchase, those savings will be canceled out if filling up the tank each week breaks the bank. There are a couple of ways you can estimate the fuel costs of a specific vehicle: You can “track your mileage and fuel economy in your current car and compare it to the estimated mpg ratings,” or you can check out the EPA’s “detailed listing of fuel economy figures and annual fuel cost estimates for both new and used vehicles,” said Edmunds.

If you are considering an electric vehicle or a hybrid, it is important to factor in the costs associated with charging, too. For instance, with an EV, “you could have upfront costs of installing a home charger or difficulty finding a public charger,” said NerdWallet, potentially adding mileage if you take frequent road trips.

Becca Stanek has worked as an editor and writer in the personal finance space since 2017. She previously served as a deputy editor and later a managing editor overseeing investing and savings content at LendingTree and as an editor at the financial startup SmartAsset, where she focused on retirement- and financial-adviser-related content. Before that, Becca was a staff writer at The Week, primarily contributing to Speed Reads.