Often there comes a time when we either need or want a new car. New cars can range drastically in price with very few costing less than about £10,000 upward of a hundred thousand pounds. The first thing you need to work out your budget. If you have already got the cash then you will know how much you have to spread but if you are thinking of getting car finance or of getting a personal loan to pay for the purchase then you will need to see how much you can borrow. If your credit rating is bad then you may struggle to get a loan for the amount you need or if you do, you will most likely to be hammered on the interest rates. Affordability needs to be taken in to account, so work out how much you can afford to pay back monthly. This will then allow you to work out how much you can borrow over what period.
You need to make sure that if you are taking finance or a loan out for a car over three years for example, that the car is likely to last at least that long. Obviously you can never be sure, but you do not want to fork out for a car and then have to fork out again in twelve months when you are still paying for the first one.