What Kind of Car Should I Get? (2024)

Whether you're a first-time car buyer or you've, quite literally, been around the block a few times, it's easy to feel overwhelmed by the variety of used cars out there. You may be in need of a car as soon as possible, or maybe you've realized you’ve outgrown your current vehicle.

Either way, the most helpful way to narrow down your options is by taking an audit of your needs, budget, and expectations from a vehicle. Start by asking yourself the following questions.

What's My Budget?

To set yourself up with reasonable financial expectations, you’ll want to make sure you take a close look at what you can afford. Unless you’re planning to buy a car in cash, you’ll want to dig a little deeper into your monthly finances and credit score to select a price range you can live with.

Since auto loans and leases alike are paid off in monthly installments, consider your monthly budget for vehicle expenses. A good guideline to follow is no more than 10% to 15% of your net monthly income should be going towards total transportation costs.

The total cost of ownership for your vehicle will depend on how many miles you plan to drive, gas prices in your area, your driving history’s impact on car insurance and possible repairs. Remember that you can expect to pay around 10% more in taxes and lender fees, depending on your state, on any sticker price you see. Consider whether it’s worth waiting until you can save more towards a down payment to reduce the size of your loan.

For example, let’s say you were to buy a 2019 Subaru Impreza. With Americans averaging 14,263 miles per year, a 3-year old vehicle is most likely to have around 42,800 miles on it. The Kelley Blue Book value suggests a fair market price of $21,800. However, you’ll see below that the projected 5-year cost of ownership is nearly double, at $40,665.

*Based on proprietary data from Edmunds.com

That said, you’ll find that by buying it at 3 years old you’re saving $6,388 in depreciation costs alone, which reduces year after year. It’s important to get a quote for your insurance and shop around for the best deal on a car loan.

Should I Buy New Or Used?

The difference between new and used cars often comes down to savings. If you’re feeling drawn to a new car smell, know that you’ll pay for that good feeling.

New cars depreciate at much higher rates than used cars. IseeCars.com reveals that the average new car's resale value drops by more than 40% over the first 5 years of ownership. Used cars have already gone through their early loss of value, so you can expect a better price and slower depreciation over the years.

Consider: What Do I Need A Car For?

When you envision your next car, where do you see it taking you? If you’re commuting often and plan to put over 12,000 miles a year on the car, you may consider researching vehicles that retain their resale value over time or vehicles that last the longest.

Did you just score that remote job and plan on working off the beaten path? Drivetrain will be an important consideration for you. Make sure you buy an off-road vehicle equipped to handle rough terrain.

Whatever the circ*mstances, really ask yourself what you expect out of your next car to help you pick the right one for your situation.

How Many People Do I Plan On Hauling?

You can filter out entire categories of vehicles based on how many passengers you plan to have and how frequently your car will be full. If you have young children that come with strollers and car seats, or want your teenager’s friends to feel welcome to come along for the ride, consider a reliable, safe family car.

What Conditions Will I Be Driving In?

The kind of road conditions you'll face has an enormous impact on which car you should buy. If your city gets a lot of rain, snow, slush and salt on your local roads, an all-wheel-drive (AWD) vehicle with high ground clearance, such as a Ford Explorer or GMC Yukon, would make good choices. Southern California, however, may be just the right place for convertible Mustangs or Corvettes with lower ground clearance and room in back for a surfboard.

How Are Gas Prices Where I Live?

With rising fuel prices, the cost of filling up the tank should be a serious consideration in your budget. If fuel economy is important to you, consider a car with good gas mileage. There are super-efficient models available in every category, although some are better than others.