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Think financing first. That’s right. Before you begin your search, know your price range and be prepared to act fast. If you’re buying with cash, be certain the funds are readily available, and if you’re financing the car, get preapproved for a loan. You’ll not only know your budget, but the interest rate you qualify for, too. What’s a good used-car loan rate? "The average is just over 5 percent, but don’t settle for average, especially if you have a good credit score," says Greg McBride, CFA, chief financial analyst at Bankrate. "There are tons of rates reserved for people with good credit for under 3 percent."

Keep loan terms short. Stretching the term of your loan might seem like an easy way to wrap a small budget around a pricey car. But it’ll cost you. Finance a $20,000 car at 3 percent for four years and you’re looking at a monthly payment of $442 and a total of $1,248 in interest paid over the life of the loan. Stretch that term to five years and your monthly payment goes down to $359, but you’ll pay $314 more in interest. Bankrate has an auto loan calculator where you can run your numbers.

Buy the right kind of SUV or TRUCK. When you’re buying used, you’re avoiding that first year of depreciation, which is about 21 percent on a new car, says Ron Montoya, consumer advice editor at Edmunds.com. Look for used cars in the 2- to 4-year-old range. Why? That’s where you’ll pick up the best deals. It’s considered the sweet spot. Newer cars often sell for close to their original price, so you’re not shaving much off by going used. Once a car is more than 6 years old, there’s a greater chance of major repairs -- and the bills that go along with them.

Research and compare prices before you hit the lot. You want the dealer to know that you’ve done your research. For a new car, Montoya recommends checking Edmunds to see what people are paying for the car in your area, then calling the Internet sales department of three dealers and asking for a price. You can then reference the Edmunds data and pit them against each other in a negotiation.

"You have a reference point to compare to, because you’ve done your research. So you can say, 'Can you match this price? This dealer is a little further away, but offered me a better deal to buy a car in japan,'" explains Montoya.

With used cars, it’s a bit different because they aren’t as comparable -- condition and mileage will vary. Still, Montoya says you have to leave room to be aggressive in a negotiation here, because the profit margin for the dealer is larger on a used car.