Anyone have any tips for new (used) car shopping? I have no idea how to even go about this. Here is the scenario I am working with:

1. I'm currently pregnant, but we already bought the "mom" car last November. We have a sizable car payment each month for this car ($300+)

2. Our second car was paid off, but my BIL just totalled it accidentally. The insurance company is giving us $5,500 for it.

3. DH and I have a relatively long (30+ miles), traffic-filled commute each day, so we probably need to get something with good gas mileage and small, like a commuter car.

4. We'd like to avoid having to make two large car payments at the same time, so I guess I am looking for something reliable that is as close to the settlement check from the insurance company as possible. I don't think we can get something that will last a long time without problems for $5,500, so I'm thinking we need to go up to around $10k and finance the rest for a very small monthly payment.

5. I'd rather buy from a dealership as opposed to an independent seller, just so we have some recourse if the car winds up being a piece of crap. But I'm guessing that means it will also be more expensive.

I'm not sure what kind of car to even look at. I've heard Toyota and Honda are good and hold their value. There's nothing fancy about them, but I guess it isn't really worth it to worry about that at this point. I feel bad that DH has to get stuck with yet another cruddy car while I get to drive exactly what I want, but he doesn't seem to really care either way. The only thing that would excite him would be if we could get him a truck, but that doesn't really make sense with needing to commute back and forth to work.

Any tips/tricks/ideas/car suggestions?