After graduation you’ll need some new wheels to get to that all-important first job. But which new car is for you? Money Under 30 picks the top new cars for college graduates and young professionals under 30 based on affordability, reliability, and appeal.

2007 Scion tC
Avg. MSRP: $15,000 (Man.)

If you crave an affordable sports car, look no further than the 2007 Scion tC. Featuring mouth-watering standard equipment like 17-inch alloy wheels, a moonroof, and a super sound system, this coupe is one hot ride for just $15k. The tC also boasts the engineering quality of Scion parent company Toyota, so you know you can count on your tC. Got friends? Owners praise the tC’s spacious rear leg-room. For a small car, the Scion tC carries disappointing 21 mpg city and 31 mpg highway EPA ratings. Fuel economy aside, the tC is a loveable marriage of fun and practicality.

2007 Hyundai Sonata
Avg. MSRP: $18,295 (Auto.)

Need to impress your coworkers? Drivers looking for a larger car won’t beat the 2007 Hyundai Sonata. Redesigned in 2006 and made even better in 2007, the new Sonata is proof that Hyundai is a worthy competitor in the American auto market. The Sonata provides a smooth, quiet, yet peppy ride and boasts a surprisingly spacious cabin. Need more proof? The Sonata raked in initial-quality awards from J. D. Power and boasts Hyundai’s impressive five-year/60,000-mile bumper-to-bumper and ten-year/100,000-mile limited warranties.

2006 Toyota Tacoma
Avg. MSRP: $18,230 (2WD, Auto., Access Cab)

Haul more gear than bodies? For those looking for a pick-up truck there’s no better choice than the Toyota Tacoma. The redesigned 2005 Tacoma won Motor Trend’s 2005 truck of the year award, and the Tacoma continues to be strong. With rock-solid reliability and interior styling far eclipsing American compact pick-up trucks, the Tacoma does well as a daily driver and a work horse. The Tacoma is highly affordable on the lower end, with four-cylinder, rear-wheel drive models all coming in under $20k. Choose these models for the best affordability, fuel economy, and reliability. Six-cylinder and four-wheel drive models will cost substantially more to buy, fuel, and repair.

Money Under 30’s Best New Car

2006 Honda Civic LX Sedan
Avg. MSRP: $17,510 (Auto.)

To current Honda drivers, the Money Under 30 pick for best new car for college graduates comes as no surprise. The 2006 Honda Civic features Honda’s legendary value and reliability and, finally, competitive styling. The Civic may not be the flashiest car you can buy, but its appearance has come a long way from its blander past.

Civics carry higher sticker prices than competing compact cars but cost less to own thanks to fewer repair bills. And with an EPA highway rating of 40 mpg, the Civic’s gas tank is easy on your wallet, too. The LX model offers options that are “just right”, including air conditioning and power windows and locks. Choose a barebones DX model to save cash or splurge on the EX for “luxuries” like alloy wheels and a sunroof.

Now that you have some cars to choose from, read up on some smart car shopping tips or learn how to negotiate with car salesmen like a pro.

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Looking for a used car? Check out these useful resources:

The ultimate used car value reference, the Kelley Blue Book Used Car Guide 2006 contains average private market, trade-in, and dealer prices for fifteen model years.

From the most trusted source of car satisfaction and reliability, the Consumer Reports 2006 Used Car Buying Guide is a comprehensive reference for anybody purchasing a pre-owned car.

Buying your first car on your own is both exciting and harrowing. After all, a new car is more than a shiny toy; your first car needs to be a reliable, safe, and affordable.

The Golden Rule of Car Shopping

Before your buy your first car you must learn the golden rule of car shopping: The more you want it, the more it will cost you. Why, exactly? Because the auto industry uses emotion, more than anything else, to sell cars. Think about it. Many recent model Volkswagens have among the worst Consumer Reports reliability ratings, yet continue to be popular cars, especially among young buyers. Why? Because they look cool. But emotion doesn’t just dictate the car models people buy; emotion directly affects how much you pay for your new car.

Car salesmen are trained to do one thing: get you to want a car so badly you will sign for the car’s sticker price before you go home. Think about that. Car salesmen’s jobs are to get your emotions going. They let you drive the car, they tell you how great you look in it, and they make fun of your trade-in. They are trained to keep you waiting for long periods of time so your desire for the new car can grow. And auto showrooms aren’t made of glass to let people see inside. That glass is so you can see all the new cars (and your old one) while you wait! What’s more, the car salesman, typically, does not negotiate the price of the car or handle the details of the financing or registration (managers do). Those in auto sales are compensated by two things: how many cars they can sell (how quickly they can sell you a car), and how much profit they can “hold” on the car (how much above sticker you pay). Therefore, logically, the more time you take and the more research you put into buying a car, the better your deal will get.

How Much Car Can You Afford?

The first step to buying your first car is to determine what car you can afford. You must do this before you set your sights on any particular vehicle. Why? Remember the golden rule. If you start taking test drives or paging through car ads before you have a budget, it will be far to easy to convince yourself you can afford a car later. Most financial planners agree you should not spend more than 20% of your monthly take-home income on transportation. So once you divide your monthly after-tax income by five, you will need to figure out how much you will spend each month on gas, insurance, maintenance, tolls, and parking (all transportation costs). If you sometimes take taxis or public transportation instead of driving, factor those in as well. Once you have subtracted your ancillary transportation expenses from 20% of your monthly income, you have your maximum monthly car payment. Here’s an example for somebody that makes $29,000 a year:

Monthly Income: $1,975
20%: $395
Insurance: ($70)
Gas: ($100)
Maintenance: ($40)
Max Payment: $185

Your monthly payment figure is probably less than you had thought. But that’s good! Believe it or not, somebody with average or better credit can own a reliable car for just $100 a month. Don’t think of your maximum payment as inhibiting what car you can buy, rather freeing up your money to spend on other things.

The Right Car for You

With all of free online automotive research available, it doesn’t make sense to start shopping for your car on the lot. To start try Edmunds.com where you can sort and compare cars by a number of different criteria, get full car descriptions and lists of features, and, if you choose, connect with dealers in your area via e-mail.

Look at both new and used cars in your price range and remember that buying a new car is more costly than buying a used car because of how quickly a new car depreciates. That said, used cars inevitably will cost more in maintenance in the first two to three years. New or used, look for a car that you can see yourself driving for a number of years and can provide safe and reliable transportation. If you are leaning toward a new car, investigate the factory warranty (not extended warranties) and reports on initial problems on the year, make, and model you’re considering. While you’re at it, check out Money Under 30’s best new cars for college graduates. If you decide on two or three different cars but can’t narrow it down from your living room, it’s time for a test drive. But don’t get up so fast. You will need to approach the dealerships carefully.

Buying New

Before you go on a test drive you want to get car dealer quotes from multiple dealers for each car you’re considering. Most car research sites make this easy, giving you the option to select dealerships and click submit just once to get multiple quotes on each car model. Prepare to receive a barrage of phone calls and e-mails relatively quickly. Most dealerships have dedicated Internet salespeople standing by to respond to your quote request. The great thing about shopping for a car online is that research sites show you the exact invoice price (what the dealer pays for the car), and how much above that price people in your area are actually paying this. When you approach a dealership from the Internet rather than the street, the sales staff knows you have extra information and will treat you accordingly. (This means they will only lie to you about 90% of the time). Some dealers will come back simply asking to set up a test drive, others will send you a hard quote. Don’t agree to go for a test drive without a hard quote, and always take printed copies of every quote you received with you to the dealership. Shadier dealers may claim to have made a mistake on a quote that you can’t prove you received. Once you have all your quotes in hand take some time to have fun taking test-drives. If you have done your homework and selected a few reliable, safe, and affordable new cars to choose from you can let your tastes make the final selection. Once you have, go home and sleep on it. Never buy a car on your first trip to the dealership. Statistically you will pay more for your car if you do.

Buying Used

The process is slightly different if you choose to buy a used car. You will need to be slightly more flexible about the car you ultimately buy, but you will also have greater pricing flexibility. Not only can you choose from similar cars with different mileage (and prices), dealers have a much higher profit margin on used cars, meaning there is more room for negotiation. To begin the final selection process for a used car, find between five and ten cars that interest you and meet your price, safety, and reliability requirements. Request quotes online from the dealers and choose three to five to test drive. As with a new car, never buy a car on your first visit to the dealership. Have just one night to think over your potential purchase could save you from getting stuck with a lemon for five years. A final step in buying a used car is running a title history report and/or getting an independent mechanic to inspect the car for you. Any reputable seller will allow you to take the car to a mechanic for a quick check, and you should. If you have a good relationship with your mechanic he will probably do this for free. Otherwise expect to pay between $20 and $50.

Have you chosen the car you want to buy? Congratulations! Before you return to the dealership to make a deal, learn secrets of an ex-car salesman and how to negotiate with car salesmen like a pro!

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The ultimate used car value reference, the Kelley Blue Book Used Car Guide 2006 contains average private market, trade-in, and dealer prices for fifteen model years.

From the most trusted source of car satisfaction and reliability, the Consumer Reports 2006 Used Car Buying Guide is a comprehensive reference for anybody purchasing a pre-owned car.