When it costs upwards of $10,000 a year to own and operate your vehicle, you want to be sure you have your hands on the right wheel for you. Annual ownership and operating costs for a new mid-sized vehicle are 52 cents per kilometre according to the Canadian Automobile Association (CAA). So going from point A to point B is an expensive journey.

The car buying experience received a much needed boost thanks to the arrival of the Internet. You can now save many of the hours involved in researching a car purchase. In minutes you can compare car prices and model features, get information on a vehicle's repair history, find insurance and more. The process has moved out of dealer showrooms and into your livingroom.

Some key steps to follow in the buying process are:

Prepare a list of the features you want from your vehicle and think about how you'll use it. Once you know what you need from a vehicle, you can research and study the different models available.

Take each model that you're interested in for a test drive. Make note of the safety features, design, comfort, braking, handling, acceleration, ride quality, ease of entry and exit, etc.

Find out the insurance rates for the models you like.

Once you've decided on a specific make and model, visit several dealerships that carry the same car. Compare the prices of the car you want to buy and the amount of your trade-in.

The first decision for most people to consider at car buying time is whether to go new or used. If money or credit history is an issue, the used car route might be a better choice. Reliability with cars is also improving. A used four year-old vehicle can still deliver years of reliability and performance. You'll also avoid the steep depreciation costs that new vehicles experience. The downside to used comes from repairs and maintenance. You'll spend more to maintain and run used vehicles than new ones.

When you buy new, you're likely moving into worry-free driving for the most part. Under normal driving conditions, your new vehicle should be dependable and keep you from fixing or replacing tires, exhaust system, air, suspension, brakes and other costly repairs during your initial years of ownership. Major repair bills should not be an issue either as most new car warranties provide at least three years protection. Late-model used cars also have warranty programs, but coverage is usually below that of new cars. You could purchase an extended warranty or service contract if you're prepared to spend a few hundred dollars more. The best time to buy new and save money is at the end of a model year. Dealerships and manufacturers want to clear out stock in preparation for new arrivals. This would allow you to take advantage of rebates, financing incentives and other price cuts.

Most people, says the CAA, use price as their main buying factor. Two out of three persons said the most important factor in their next car purchase would be price. Many of us would like to be behind the wheel of a luxury vehicle. But remember - once the novelty of buying a fancy car has worn-off, you're still left with the hefty monthly payment.

Decide if you can get by with a car that is less expensive and more practical. Several manufacturers produce mid-priced vehicles that approximate the styling of luxury cars. These vehicles will usually save you a considerable amount of money in terms of financing and repair costs.

Repair history, reliability and insurance are part of the vehicle's overall operating costs, so consider these in your decision, too.

The Insurance Bureau of Canada (http://www.ibc.ca/vehinfo.asp) produces various pamphlets that offer insight into these other "unseen" car operating costs.

Before Buying A Car - provides a good overview of the factors that impact a vehicle's rating.

Choosing Your Vehicle - is a comprehensive listing of safety and security features as well as comparative insurance rankings by vehicle type.

How Cars Measure Up - presents a comprehensive look at the insurance claims experience of the most popular Canadian models of cars, passenger vans, sport utility vehicles and pickup trucks. Claims experience of the vehicle you drive is one of three factors in determining the cost of insuring your car. The other two are your driving record and where you live.

Getting the right vehicle depends on your budget and lifestyle. Click on the Planning Tools button to determine the best route for you.