1) Buy used. Two-three years old is fine. Certified pre-owneds are nice, too.

2) If you have to finance, go through your credit union to get approved for a loan. Have loan approval BEFORE you set foot in a car shop.

3) Know your credit score. If you have any outstanding bills or discrepancies on your report, get them cleaned up before you try to get a car loan.

4) Check the internet first for the type of car you want. When I bought my car, I picked out a car that I wanted online and then went into the dealership. I think the price was more affordable.

5) If you have to finance for more than four years, than you are buying too much car.

6) Think twice about GAP insurance. You probably won't need it.

Right on Frugalista! All excellent points. Some other suggestion is if you don't belong to a credit union, join one! They usually have great rates.  Also, most of them have a car buying service. You tell them what make, model, age, how much car payment you want and they will do the searching for you. Or they will have a car lot and/or a sales event for you to look at cars. Most of the time they will provide a Carfax free of charge, just ask.

I have bought all my cars (except my first) that way and I have never been disappointed.

Thanks gals for the great tips! It might be a couple of years before I get my own car but it's never too early to start preparing.