Skyrocketing gas prices during the summer of 2008 seemed to be the beginning of the end for the American auto industry. Now, General Motors has been nationalized. But, if you still have a job, then the faltering auto industry could offer a great opportunity to buy a car.

Despite the fact that new cars are priced cheaper than ever there are still points to be mindful of when buying a new car.

1. Not Doing Enough Research: It’s important to be diligent about researching the kind of car you’re interested in. There are tremendous resources available to you through the internet alone (Edmunds.com, AutoTrader.com, Cars.com, Autoblog.com). Check with the Safercar.gov to research a vehicle’s crash test and rollover ratings. Once have a few cars in mind, contact a few dealerships, research deals, read car reviews and find out what your cars competitors are and how they measure up. Know how much horsepower you would like or need in your personal car.

2. Not Predetermining Your Budget: Know your financial limits. A car is one of the biggest investments you’re likely to make, other than your kids and a house. Knowing how much you can afford puts a cap on all sales discussions. You should know what class of car from what car makers your budget puts you in. How many gizmos do you like in your car and how much are you willing to pay for them? You can usually find out how much the extras cost on a carmakers website.

3. Using an Auto Broker: You should have some sense of what kind of car you’re looking for – is it a minivan, a yellow-convertible, a pick-up truck, a standard sedan, a sporty coupe? You should be able to negotiate buying a car by yourself. This isn’t real estate. Avoid the other pitfalls on this list and that’s more than half the battle right there.

4. Be Cautious of Unnecessary Fees and Extras: Car dealerships are not your friends. They’re not there to hold your hand. You should know beforehand whether or not you need an extended warranty, extra security options or the rust-proof coat of paint. Beware of hidden charges, and if you need a loan, consult a bank or credit union before visiting a dealership.

5. Not Taking a Test Drive: Would you buy a $60 pair of running sneakers without trying them on? A car is a depreciating investment likely to cost you well in to the tens of thousands of dollars. You’ll be driving it frequently and trusting your family’s safety with it, as well as your own. Drive the car before you buy it, drive it aggressively and ask questions.

6. Not Negotiating the Sticker Price: The dealer won’t hike the price up on you for haggling with him. Getting a few grand knocked off a sticker price can make a huge difference.