 TITLE: 10 Things First-Time Car Buyers Need to Know CONTENT: 1\\. Know Your Budget\n--------------------\nThe first step in buying a car is to set a budget. This will help you narrow your focus to cars within your price range before you fall in love with one that'll break the bank.\nTo create a budget, start by adding up all your monthly income and all your monthly expenses. Be sure to categorize your expenses as either fixed (such as your rent, utilities or student loan payments) or discretionary (such as going out to eat or buying new clothes). Once you've got an accurate idea of your expenses, you're likely to see several areas where you could cut back, which could leave you more money to put toward your monthly car payment.\nIn general, it's best to keep your car payment below 10% of your monthly take-home pay. But your monthly payment isn't the only factor to take into account when budgeting for a car. You'll also need to consider the ongoing expenses of owning a car, such as insurance, gas, repairs and maintenance.\nLoan terms are another factor to consider. Auto loan terms generally range from 36 to 84 months. The longer the loan term, the smaller your monthly payment will be, but the more you'll pay in interest over time. By choosing a less expensive car and putting down a larger down payment, you can opt for a shorter loan term and still keep your payments manageable. END