While driving a new car is a lot of fun, shopping for one can be a pain. Throw in a tight credit market due to the unstable economy, and that makes looking for a new car even more frustrating.

But it really is possible to get into a car you will love at payments you can afford. First of all, you need to know how big a payment really fits into your budget. When you are budgeting for you car, don’t forget you also have to pay for insurance, fuel, taxes, repairs, maintenance, tax, license, and registration. But once you know how much you can afford to pay, you can move on to step number two.

The second step in buying a new car on a budget is to consider how you will use it. Do you drive mostly on city streets? Do you have a long commute down a highway? Do you need to carry passengers, or is hauling equipment and luggage your first priority? Your budget and your driving needs determine the kind of car you should buy.

Next, decide on whether you want to purchase a new car or a used car. In the past, many people would buy new cars because used cars were considered unreliable. However, with improvements in technology, cars are better and lasting longer, making used cars a worthy choice. If you do decide to go the used car route, make sure you have access to the vehicle?s repair and maintenance history. You don?t want to purchase a used car that has had major repairs that have not been disclosed.

Then you decide whether you want to buy or else. Leasing tends to cost less per month and demands a lower down payment. It’s an option worth considering if you trade cars every two or three years. But if you keep your cars until they fall apart, and you can afford a larger down payment, buying is a better option for the long run. If you live in a rural location and commute to the city, or if you use your car in sales, leasing usually is a poor choice, since going over your allotted miles can be extremely expensive when you return the car.

Regardless of whether you buy or lease, be prepared to negotiate. Get bids on cars from several dealers. Shop around for sales and specials, especially if you are buying a car at the end of the year. Dealers often want to get rid of cars at the end of the year in order to make room for new models. The internet makes it easier than ever to negotiate and shop around for good car deals.

Finally, if you are going to buy a car and need a loan, get preapproved first. Having that preapproval in hand makes you a much more attractive customer to an auto dealer, and that makes them more likely to negotiate with you and give you a good deal.

Tom Martens is the content syndication coordinator for Carinsurancesa.co.za. South Arica?s leading car insurance portal.