The auto industry is preparing for gains in the 2012 market, according to Forbes. A healthy combination of tax refunds and escalated levels of consumer confidence has already resulted in a selling rate that exceeded expectations this February.

While the market may be good for budget-strapped consumers who have been holding out on purchasing a car, there are a few things to consider before shopping around:

• How in demand is the car? Smaller, fuel efficient cars have significantly contributed to gains earned by General Motors and Ford last month. As gas prices continue to rise, so too does the demand for vehicles that will help save some money at the pump. If you're in the market for a car that uses less gas, it may be best to not put off the purchase.
• Know your trade-in value: Selling your car for a reasonable price will be best facilitated by knowing how much your car is worth and where you stand in terms of your car loan.
• Consider payment options: Getting pre-approved by your bank before visiting the dealership may help you negotiate lower rates.

If you're considering a new coverage plan in conjunction with buying a new car, the good news is that insurance rates are not dependent on rising gas prices. According to CBS Money Watch, the average auto insurance rate in Virginia is $1,297, making it one of the least expensive states in the country to purchase auto insurance.