I agree with everyone's advice to get a nice used car. I looked around and did a lot of research before buying my first car ('97 VW Jetta GLX). I had saved $2000 and used that as a down payment and got a loan for the remaining $5000. My monthly payments are $146/month + $50/month insurance (full coverage (my dad is listed as primary driver)). $200/month for both insurance and loan payments is VERY reasonable. My car isnt a piece of junk either.
I'm very happy with the decision I made, especially after seeing a lot of my friends who make monthly car payments of $500 (incl. insurance).
The most important piece of advice I can give you is to do research before you buy a car. Google the specific make/model/year of the car you are considering and look for reviews. You may see that the specific year or model has a costly reoccurring problem, or something along those lines.
If you are buying a used car, be sure to have the car checked out by a mechanic YOU choose. Try to take it to a mechanic who specializes in that make of car. If the person is not willing to let you get the car checked out, then do not buy from them. I would also suggest buying an unlimited Carfax report account (
www.carfax.com - $24 for unlimited or $20 for one time use). The report will tell you if the car has been in an accident, if it had any flood damage, body work, etc. The $24 is well worth it, in my opinion. Again, don't *only* go by the Carfax report, also have it checked out by a mechanic.
Good luck with your first vehicle purchase!
If you have any more questions, don't hesitate to ask.