You'll also want to consider whether you want to finance your purchase with a lease, loan, or cash. A loan is a form of financing in which you borrow money to allow you to purchase a vehicle. With a loan, you own the vehicle. With a lease, you can use a vehicle by making payments to the leasing company. At the end of the lease term, the leasing company usually offers you a discount price to buy the vehicle, called the residual value. Until the end of the lease term, however, the leasing company owns the vehicle. Use the Lease vs. Loan Calculator to get a quantitative side-by-side comparison of the two choices. A good rule of thumb is that the monthly payments on your vehicle plus all other transportation expenses (gas, insurance, etc) should not exceed 15% of your monthly net income. If you choose to get a loan, get a quote and apply online now, or just pre-qualify for a loan..

Once you've narrowed down your search to a few models, you'll want to test drive all the vehicles you are considering. As you test-drive, keep in mind safety features, braking, comfort, design, etc.