Set your budget

Unless you’ve got a pile of cash lying around, you’ll probably need to take out a car loan. It’s smart to keep your total monthly car expenses — payment, insurance, fuel, maintenance, repairs, registration — to 20% or less of your monthly take-home pay. Use a car loan calculator to find out what purchase price will provide a monthly payment that comfortably fits into your budget. Avoid the temptation to stretch the loan past 60 months (five years) just to buy a more expensive car.

Use a car finder tool

Many automotive websites, such as Autotrader or Kelley Blue Book, have tools that allow you to filter your search by price, vehicle category and even options. Build a target list of five cars to research by reading reviews from automotive experts and owners.

Even if you’re firmly convinced that you know what you want, it’s important to look at competing models. The market is so crowded these days, it’s easy to overlook a model that might better suit your needs than your initial top pick. Don’t rush this part of the process, because once you get a new car, you’ll have to live with it for years.

If you have trouble comparing competing cars, you can use the Edmunds Compare Cars tool, which presents features and specs in an easy-to-view table for side-by-side comparison. Based on your research, narrow the field to three cars.