• comparison shopping
• putting as much down as possible
• weighing your long-term ability to make payments
• being scrupulously honest on your application

Additionally, prospective car buyers need to be aware of and take advantage of incentives offered by car manufacturers. The Chevrolet Aveo and Cobalt are two of the most affordable GM cars on the market. Each has a 36-month / 36,000-mile comprehensive warranty and a five-year / 100,000 mile power train warranty for the engine, transmission, transfer case, and axle assembly.

During January 2010, all new Aveo and Aveo5 models are eligible for dealer cash totaling $1,500 regardless of the buyer’s credit score. On a car with a price already under $12,000 MSRP, that’s a hefty break for a budget-strapped buyer worried about qualifying for a loan. The Cobalt is an even better deal, qualifying for as much as $3,000 cash back with no FICO score limitation.

Car buyers have to be smarter and more disciplined during a recession, paying attention to all the traditional things that help them to qualify for financing, but also making vehicle selections based more on affordability than desire.That probably means going with the trend and buying small. Consumer preference is propelling a resurgence of small, fuel-efficient vehicles on dealer lots and compacts are leading the way. Ford’s signature model at the Detroit auto show is the Focus, with the once-dominant Ford F-150 line of trucks receding into the background. The good news for drivers, however, is that small also means cheaper.

By leveraging manufacturer incentive deals that lower the sticker price, more would-be buyers can qualify for financing, a win/win situation for both carmakers and car owners.