As a driver, you just know the moment that your beloved car starts to lose steam. That's when the dreaded feeling hits you: It's time to shop for a car.

When it comes to deciding between a new and used car, the decision of which to go with isn't an easy one.

"The first step needs to look at is what the consumer's needs are," said Howard Polirer, the director of industry relations for AutoTrader, who has been in the auto business for more than 30 years. "Beyond that, in today's circumstances it comes down to what can they afford and going from an emotional decision to a logical decision."

There's lots of ways to shop for a car, all of which are easier than when Polirer got into the car business.

"Before the Internet, customers picked up magazines at 7-Eleven or read Consumer Reports to get pretty unbiased options," said Polirer. "But people need to understand that the process of shopping for a new car is different. There is no used car factory. The consumer needs to be really careful because a used car may look identical than a new one, but still be different than a new car out of the factory."

Polirer said a mix of old and new methods of shopping works well.

"Traditional sources of information can help move you closer to what you can afford," he said. "The only natural transition is to then get online."

Social Networking Efforts

Polirer said there has been a huge jump in the amount of user generated content when it comes to used car shopping.

"There's a wealth of research available online," Polirer said. "'Are there any problems with a particular year, make or model?'"

Auto-related Web sites have had a bigger impact than the industry thought it would have.

"A year or two ago, talking to industry about social networking, people thought wouldn't impact the industry," Polirer said. "But you can drill down and get a feeling for a car."

Online Opportunity For Sellers

According to the J.D. Power and Associates 2008 New Autoshopper.com study, 75 percent of new-vehicle buyers in 2008 are using the Internet during their shopping process, up from 70 percent last year.

"The current economic environment, coupled with high fuel prices, has given rise to a shift in the vehicle buying habits of U.S. consumers," said Arianne Walker, director of marketing and media research at J.D. Power and Associates in the report. "Shoppers who were once loyal to larger vehicle models are now finding themselves in the market for a compact or midsize car. For many, this is unknown territory, and these shoppers are turning to the Internet for information and education about the vehicles in their new consideration set. The resulting demand for information provides automotive marketers with valuable opportunities to reach out to shoppers via the Internet."

The amount of time shoppers spend online researching automotive information has also increased since 2007 -- up 12 percent to more than 6 ½ hours.

The number of Web sites being visited by new-vehicle shoppers has remained relatively flat since 2007, which suggests that consumers have become more engaged with the sites they currently visit.

"The collaborative environment facilitated by Web 2.0 is changing the way shoppers research vehicles, driving many to seek the experiences and opinions of other shoppers and owners," said Walker. "The opinions of other consumers are so impactful that we are already seeing distinct purchasing patterns develop between those shoppers who use consumer ratings and reviews, and those who rely solely on expert ratings and reviews."

Web Brings Competition

The Internet has given dealers an even larger marketplace to sell to but also more competition to fight off.

"Those that understand that the dynamic has changed and have Internet-savvy cultures at their stores will succeed," Polirer said.

One of those stores is Poquet Auto in the Minneapolis suburb of Golden Valley. The used car dealer buys its vehicles from auctions -- many off of a lease or coporate fleet vehicles that aren't being used anymore.

The dealership puts its entire inventory online, including mileage, vehicle identification number and several pictures of the inside and outside of the car.

"If a dealer wants to succeed, the customers wants and needs have to come first," Polirer said. "That's a big change for the industry. The old-school stuff that consumers worry about (when going to a dealership) doesn't take place."

Where To Buy Used?

After deciding to save some money and go with a used car, there are different places to go: a private party sale, a used car dealership or a new car franchise's used car lot.

Polirer said he prefers certified used or certified pre-owned vehicles. There is no difference, he said, except for the image the automaker wants to project.

In the case of General Motors, Polirer said, Chevrolet, Pontiac and GMC vehicles are called certified used vehicles, while GM's Saab, Hummer and Cadillac brands are called certified pre-owned.

However, an Edmunds.com article points out that certified can mean different things to different people.

Philip Reed, the site's senior consumer advice editor, wrote that it's important to learn what was inspected during the certification process and what the warranty covers.

"Obviously, if a manufacturer stands behind a guarantee, it is that much more valuable," Reed wrote. "For one thing, the warranty will be honored at other service departments, an important factor if a person is traveling or if they move to another state.:

Things To Ask

Other tips can help protect a used-car buyer. Colin Sievers, the owner of Poquet Auto said that a buyer should ask for a dealer to run a vehicle history report, which many dealers will do free of charge, if the customer asks.

The vehicle history report will give an idea of how many owners a car has had, what states its been registered in, and any recalls it might have had.

"We're running them for prospective cars that we're looking to purchase ahead of time," he said. "I run them all the time. It's a nice confidence booster for the customer to have that."

You can also get a service history that can tell potential car owners what has been done to recondition the car and where the car is in the maintenance cycle.

Polirer also said that, given the current economy, you should get a loan in place before going to the dealership if you need one.

"It's getting tougher for dealers to arrange financing," he said. "Most lending institutions are having much stricter requirements in terms of credit scores."

Sievers said that credit unions have proven to be stable despite the state of the financial markets.

Lastly, check the warranty before making your decision. You need to know the in-service date of the car -- when it first was put on the market -- to tell how much warranty is left on the car. Sievers said that it may be worth checking into what extended warranties are offered and how much they cost.