Buying your first car can be an extremely daunting task. The key to finding the sweetest and most perfect ride for you depends on your needs and what you can afford.

Here are some tips designed to help you narrow your search or to make the process of finding the right car easier. If you follow these tips, then you’ll definitely end up with the right car for you.

Tip 1: Choose your car based on your needs.

Yes, a nice two-seater, sports car would definitely make your co-workers turn green with envy, but it’s hardly a practical decision, especially if you plan on using your car for your son’s carpool.

Before choosing your car, write down a list of your car requirements. If you’re not on the tech-savvy or auto-savvy side, then a simple list of size and function ought to do the trick.

Ask yourself; is gas mileage important for you? If you drive around the country a lot, then you’ll need a car that saves fuel or gas. Remember, gas = money. The more you save, the better.

Most car salespersons tend to think that presenting you with bright and colorful cars will sway your decision from buying an economical and practical car to a more expensive car that doesn’t suit your needs. Prove them wrong by asking relevant questions about mileage and cargo capacity.

Ask yourself these following questions before you decide on what kind of car to purchase:

Are you getting a manual transmission or an automatic transmission car?

What type of safety features do you need?

Are you going to be towing anything with your car?

Will your car fit its allotted garage space?

Are you going to be doing off-road driving?

Once you decide on these things, look for a car that addresses all your needs.

Tip 2: Set a budget and follow it.

It’s easy to go over the budget when it comes to shopping or dining in a trendy restaurant, but an investment as big as your car deserves a firm hand when it comes to your budget.

When talking to your car salesperson, decide on whether you plan on buying the car or if you’re leasing. If you’re buying and paying on a monthly basis, then the rule of thumb is that your car payment should not be more than 20 percent of your monthly take home pay.

Let’s be realistic. A luxury car is definitely a sweet ride, but it also puts quite a big hole on your bank account. Tell your car dealer how much you’re willing to pay and try to negotiate the price—in short, learn to haggle.

Tip 3: Make your mind up when it comes to leasing or buying your car.

Here are some of the key advantages of leasing and buying.

Advantages of leasing a car: When you lease, you won’t have to give money up front, or if you do, the amount would be quite small compared to what you’d have to give up when you buy a car.

You can also drive a great car for a lot less money then you can put out.

A lease also allows you to drive a brand new car every few years.

You don ‘t have to face trade-in issues after the lease ends.

Disadvantages of leasing: You end up with no car by the end of your lease, and you have to replace it.

Advantages of buying a car: Owning a car means you won’t have to worry about mileage penalty.

Buying a car when interest rates are low can be considered a great bargain.

If you want to sell your car, then you can easily do so.

Disadvantages of buying: Buying a car upfront is initially a lot pricier and the monthly payments are also higher.

Decide on whether to lease or buy based on what fits your budget and needs best.

Tip 4: Research on the different makers and models.

Read reviews on blogs and other websites to find out the basic information on some of your chosen car models. Different makers also have varying specialties. Some have exceptionally great engines, while others offer car models that are extremely fuel-efficient.

Also research on car prices and how fast the value of a specific car declines with every year. If you’re planning on selling a few years after your purchase, then consider finding a car whose value doesn’t depreciate too heavily after a year or two.

Tip 5: Find a reputable car dealer which will let you test drive the car before purchase.

You need to know if the car works for you. At first glance, you won’t be able to tell how hard it is to shift gears or how low the brakes will have to go before your speed decelerates while driving at the freeway.

A test drive will let you gauge your “compatibility” with the car. If the car dealer has a website and an Internet salesperson, then ask about the specific model you’re looking for and whether they have the color and the trim level you want.

Tip 6: Expect to haggle.

A regular car salesperson will usually give you the highest price possible for the car. Don’t agree just yet.

This is where the importance of research kicks in. Since you know the exact price of the car model, the price the salesman offers shouldn’t be much higher than the approximated price of the car. Negotiate the price lower and reach a compromise that will make both you and the salesperson happy.

Expect the opposite from the Internet manager. Internet managers will offer you the “rock bottom” price as soon as the two of you begin negotiations. Although you may try to haggle, chances are the price of the automobile will no longer be lowered. Visit the car dealer if you’re interested in making a deal.

Tip 7: Ask about car insurance.

When you’ve made up your mind on the car model you want, ask about paperwork and the different insurance types your car is going to need. This will prepare you for the “other” costs that come with buying a brand new car.

Let these tips help you in finding the right car for you.