Reports by Consumers

When you buy a car, make sure it fits in your budget. In general, cars are poor investments, but you probably need one to get to work and shop. Make sure to consider used cars and lease-returns. Cars have become much more reliable, so you can drive a high-end car for a lot less if you don't need the latest model.

How much should you spend on a new car? Not more than 20 percent of monthly income, say experts. "This includes payments on all the cars you may own, whether you have one vehicle or six," says Karl Brauer, editor-in-chief at Edmunds.com. "And we're talking about your take-home pay, not your gross income."

Even if your home is paid for and you have few monthly bills, the basic rule still stands.

"By and large, cars are terrible ...