Aim to keep your monthly new car payment under 15% of your monthly take-home pay .
Effective research for a new car involves a three-pronged approach: setting a strict financial foundation, narrowing options based on objective data, and conducting strategic in-person evaluations. Experts from Consumer Reports and Kelley Blue Book (KBB) emphasize that the most critical work happens before you ever visit a dealership. 1. Financial Groundwork how to research buying a new car
Obtain a financing offer from a bank or credit union before visiting a dealer. This gives you a baseline interest rate to compare against dealership offers. Edmunds: New Cars, Used Cars, Car Reviews and Pricing Aim to keep your monthly new car payment
Before looking at models, establish your total cost of ownership, not just the monthly payment. Edmunds: New Cars, Used Cars, Car Reviews and
Total vehicle expenses—including insurance, fuel, and maintenance—should ideally stay below 20% of your net monthly income .