Another misconception with air compressors is that the size of the tank doesn't matter as much as the CFM output of the compressor. If you're using an air hog tool like a cut off wheel or sandblaster it'll burn through the stored air in the tank really quickly. If the CFM for the motor doesn't meet or exceed the demands of the tool then you'll still run out of air albeit it'll take longer with the larger tank.
When buying an air compressor assess the tools you plan to use with it. Look at the CFM ratings for each one, find the one that consumes the most air, and then find an air compressor that meets, exceeds, or is darn close to that rating.
As stated by the others, a wet sump compressor will be quieter and ultimately last longer between rebuilds than a dry sump compressor. 2-Stage compressors also yield more efficiency and, often, less condensation. not always though.
The rule that I stand by is buy the biggest (cfm) you can afford when it comes time to get your end all be all air compressor. I also live by "buy once, cry once" so when I bought mine I bought a Quincy 2stage. It's rated at 50k hours and has a CFM rating of like 17 cfm @ 90 psi which is more than i'll probably ever need.
Eventually you'll also want to think about "treating" the air. Dryer, purification, regulators, etc.
Now this all may be over kill for what you're initially wanting to do. When i started working on cars I had a little 3hp craftsman that ran 6 cfm @90 psi. It left a lot to be desired when doing automotive work...however it ran 2 nailers great when i reroofed my garage.