The purchase of an automobile represents one of the largest purchases you’ll make. The expense of a car, especially considering new car prices, means that choosing a car is an important decision that should be made cautiously. Whether you are considering purchasing a new or used car, take a look at the following car buying tips.

1. Consider your budget.
The amount you can realistically spend on a car will determine what you can purchase — a newer car or a used one, a luxury car or less luxurious vehicle. Try to spend no more than 20 percent of your income on a car, which includes the monthly payment and operating costs.

2. Research!
Research is the name of the game when it comes to a large purchase. Knowing what’s available in your price range will allow you to make an informed decision. Start looking at least six months prior. Review online car sites and Kelley Blue Book to get an idea of pricing. Research should also include safety ratings, gas mileage, customer satisfaction ratings, etc.

3. Be aware of total ownership costs.
It’s important to realize all the costs of ownership and not just the purchase price. Consider insurance costs, fuel, maintenance and repairs. Auto insurance rates vary a lot based on the year and model of car; call your insurance company for a quote.

4. New, Leased, or Used?
Decide whether you want lower payments and want to trade up every few years (lease) or if you want to buy the car outright and be able to sell it later. If you are buying, the interest rates on new cars are much lower, but depreciation is a factor.

5. Decide on a make and model.
Narrow it down to one make and model based on your needs and wants. Consider how much you drive, how much space you need (for children, etc.), and features (air conditioning, GPS, Bluetooth, etc.).

6. Carfax report.
Ask for a Carfax report from the seller or dealership so you’ll know the mileage, the number of previous owners, if the car has been involved in an accident, and any pertinent recalls. Turn down cars that have had major accidents or numerous owners.

7. Test Drive.
Take the car out for a spin to see how easily it starts, how it handles, idles, and if all the instruments work (stereo, lights, wipers, heater, A/C). Pay attention to unusual noises or smells.

8. Inspection.
Before purchasing a used car, do a visual inspection, then have a trusted mechanic go over the car. Look for rust, scratches, dents, uneven paint, tire wear, etc. If the seller won’t allow an inspection, don’t buy the car.

9. Negotiate.
Don’t assume that the sticker price on a car is final — it’s not. There is always room for negotiation, on both new and used cars.

10. Choose well.
Can you picture yourself driving this car every day? Make sure you are 100 percent happy with the car — you may have it for the next decade!
By using these tips, you should find the right car for you and your family. The most important thing is to make the decision thoughtfully.