The Right Vehicle  

Hey, wait. Don't go down to the car dealer and start shopping immediately. Are you sure that the car, pickup, sport utility, or van you have in mind is what you really need?  

If you rush into a deal without carefully considering how you will really use the vehicle, you could be making a $25,000 mistake, at the average new-car price. 

Sure, you want a car that will make you smile. But consider the purpose of most of your driving. Is it commuting? Hauling kids? Weekends? Vacations? 

If you drive more than half an hour to work every day, a combination of a comfortable ride and reasonable gas mileage is important. If you frequently drive clients or co-workers to lunch, a sleek coupe won't be welcoming for whomever has to crawl into the back seat; you need a four-door sedan. 

If you frequently haul your kids and their many friends or classmates, a minivan or sport utility with three rows of seats may be essential. If weekend errands involve hauling building materials or large bushes, that same utility or van will come in handy. 

Be honest with yourself. What is the largest number of people you carry regularly? What is the biggest pile of gear, luggage, or haul from Home Depot that you regularly carry?  

Once you have made this practical match up, however, you still have lots of choices. With careful planning, you can get a vehicle that you need and really want 

What can you afford? 

Add up all the costs and alternatives before you decide which car best fits your image. 

After your mortgage or rent, car loan or lease payments are likely to be the next-biggest item in your monthly budget. So calculate carefully what you can really afford. Remember to take into account such items as insurance costs, which can run as high as 12 percent, but more typically 5 to 8 percent of the purchase price. 

A new (or used) car calls for a new state registration, with fees typically running from $50 to $125. These items usually figure into the total amount you borrow with a loan or finance with a lease - and therefore help determine your real-life monthly payments. 

A good rule of thumb is to plan on spending 10 to 15 percent of your total monthly budget on all automotive expenses. If you are buying a new car, your warranty will cover major repairs for at least the first three years in most cases, but will usually not cover routine maintenance such as oil changes or replacement for items such as batteries, windshield wipers, or tires. 

A new car means higher insurance costs. (Opting for a late-model used car can cut those costs.) Your premiums for liability coverage, required of all drivers, may not change much from your old car. What will increase is the so-called collision and comprehensive portions of your policy.  

Collision pays to repair accident damage to your car, while comprehensive covers theft, fire, and natural disasters. Since you will want these types of coverage for a new car, your costs could shoot up sharply - especially if you have been driving an older car or truck and have dropped collision and comprehensive coverage to save money. 

Check the record. One way you can cut your insurance costs before you buy is to choose a model that has a good safety record and/or a low theft rate. Insurance costs vary not only by model but also by metropolitan areas, and even from city to suburbs within those areas. So when you have narrowed the number of cars or trucks on your wish list to a handful, call your agent for a rate quote, or check theft and safety records on the Web. 

For federal crash test results, go to www.safercar.gov. The site operated by the insurance-company sponsored Highway Loss Data Institute will give you rankings for injury and property losses for any vehicle, plus a list of the most- and least-stolen models. Both those factors affect insurance costs as well as your safety and peace of mind.