So, you’re finally on your own with a new job. If you’re like most Americans, a car is a necessary item—88 percent of Americans use their car to get to work. The path to getting an auto loan is full of pitfalls that can extract extra money over the course of the loan. And with the price of gas at record levels, getting a car that will serve your needs and fit into your budget may require some planning.

Here are a few tips to keep in mind before you visit the car dealer. Avoiding these landmines could mean saving thousands of dollars over the course of your loan payments and can help you get a car that’s right for your budget.

Know the complete cost of owning your car over the next five years. Make sure that you include room in your budget for insurance, repairs, parking, and of course, gasoline. Online calculators like the one at edmunds.com can help you calculate costs over the long run. A recent analysis showed that if gas stays near $4 per gallon, a large vehicle like a Ford F-250 will cost about $100,000 over five years, which includes the costs of gasoline, insurance, and repairs. Compare this to a Ford Focus, which will cost only $40,000 over five years, and you can see how knowing the long-term costs of driving can make a big difference to your budget.

Follow the 20/4/10 rule for car loans. Make at least a 20 percent down payment, don’t borrow for more than 4 years, and keep your monthly payment below 10 percent of your income. A 20 percent down payment will mean that there will be plenty of equity in your car, which is important if your vehicle is totaled or stolen. Limiting the loan term to 4 years and monthly payment to 10 percent of your income will keep you from spending more on interest over the life of your loan or from devoting too much of your income to transportation. Calculators like the one at bankrate.com can tell you how much your payments will be—and how much extra interest you will pay—under different payment plans. Make sure to fit any rebates and incentives from the dealer into your calculation.

Know your credit score and get pre-approved. Negative items in your credit history may cause a lender to raise the interest rate of a loan, so it’s a good idea to know your score in advance of visiting the dealer. If you check it well enough in advance, you may even be able to improve your credit before it’s time to get a loan. It’s also wise to get pre-approved by a lender—a bank or credit union—before visiting the dealer. Car loans can be obtained from any number of sources, including banks, credit unions, and auto finance companies located on the dealer’s premises, so be sure to check multiple lenders to see which can give you the best deal.

Find a car that fits your budget. It’s okay not to have the flashiest car. Sam Walton, founder of Wal-Mart, continued to drive an old pickup truck to work when he could have afforded a limousine. Choosing the size of car that will serve your needs for the next 8 to 10 years will help you get your money’s worth. Resources like Kelley Blue Book can help you find the types of cars that are best at keeping their value over time.

Watch out for extras. Dealers will often push products like extended warranties and theft protection just before closing the deal with you. Make sure you consider them carefully before you agree—many of these products cost the dealer very little, but add a considerable amount to your price tag.