7. Hybrids -- are they worth it?
There are going to be a handful of new gas-electric hybrid cars coming on the market, especially from General Motors. And of course Toyota, Honda and Ford will continue with their offerings.

But buyers need to beware. The income tax credits on some hybrids, especially the ones from early adopters of the hybrid technology, like Toyota and Honda, have all but evaporated. That makes the added cost of a hybrid tougher to bear. Keep in mind that a Toyota Corolla has about the same performance and space as the much beloved hybrid Prius, but costs thousands less and gets nearly the same fuel mileage.

8. Take advantage of Detroit's misery
The news is filled with reports that GM, Ford and Chrysler are struggling, so that means they are more likely to be offering deals on their vehicles in the coming year. The quality gap between Japanese vehicles and vehicles from the U.S. Big Three has narrowed or been erased on many models.

So expand your shopping list beyond Toyota and Honda and at least look at what the Detroit manufacturers are offering. You may get a better deal on a great car or truck.

Smart moves for your next car purchase:

1. Pay off your existing car loan 2. Save up a down payment 3. Check your credit score 4. Arrange financing in advance 5. Don't buy more car than you need or can afford 6. Think about fuel mileage 7. Hybrids - are they worth it? 8. Take advantage of Detroit's misery 9. Look for orphan cars 10. Think about an '07 11. Don't be the first on your block to buy the new model 12. Should I wait for an '09?

9. Look for orphan cars
In an effort to streamline production, some manufacturers are discontinuing some slow-selling models. Some of these slow-sellers are actually pretty good vehicles, but they failed in the marketplace because they were priced too high or were in a highly competitive segment.

As these vehicles are being phased out -- the Chrysler Pacifica and Dodge Magnum come to mind -- they will be offered at significant discounts. Don't worry about parts once the model has been discontinued. Manufacturers and other suppliers will make sure there's a supply for at least 10 years.

10. Think about an '07
Because sales have been slow, a lot of dealers will have new 2007 models on their lots, right next to an '08 that often will look just like the '07. Manufacturers will be offering steep incentives to move those leftovers.

Take that into consideration, but only if you plan on keeping your new car for at least five years. Any less than that, and you're unlikely to amortize the big depreciation hit you'll take because even though that '07 is new, it will be considered a year old once you drive off the lot.

11. Don't be the first on your block to buy the new, hot model
Chevrolet is bringing back the Camaro, Dodge is bringing back the Challenger and Nissan is importing for the first time its GT-R sports car. These and a few other vehicles that will debut in 2008 are likely at first to command prices above the manufacturers suggested retail price.

If any of these cars are on your list, don't get caught up in the fever. Wait a year and you'll be able to buy below list, which is where every new car price negotiation should start.

12. Should I wait for an '09?
These days, the model year on a car can be somewhat deceiving. By March, you'll start seeing ads for a few "all-new'' 2009 models. A good rule of thumb is to wait for the next model if it's going to be substantially redesigned or re-engineered from the previous year's version.

An example: The 2008 Honda Accord was substantially changed from '07, with many improvements. But keep in mind that it's better to wait a few months to let all the hype die down so you can negotiate a better deal.