Get as much compressor as your electrical service will accomodate. I've NEVER EVER heard anyone complain about having too much compressor. If COST is your limiting factor - then treat your compressor purchase like buying a Hot Rod - get something USED - preferably an Inudstrial/commercial one. All the HP ratings are virtually worthless nowadays - boarders advertising fraud - so IGNORE all that ****. Instead look at the CURRENT DRAW. You aren't gonna get a true 5hp compressor with a 10 amp 110 volt motor - it don't work that way. It's far more difficult for the unscruplous manufacturers to exaggerate the current ratings. Low Pump speed (about 900 rmp or less) Plus Low Motor speed (1750 rpm) Plus Iron cylinders will usually add up to a compressor that will last you a while. Avoid the Sum Flung Dung compressors - they ain't worth hauling home. Direct drive compressors seem to eat couplings - so I'd avoid those as well. Look at the CFM rating - and bee sure to know what pressure they are rating it at. 20 CFM @ 80 psi ain't worth spit to me (some guys only seem to hear the 20cfm part. Sooner or later you're likely to end up with a blast cabinet - size your compressor for THAT you'll never regret it - trust me. I just bought an Industrial USED 5 HP compressor in near new condition for 200 bucks. Only downside was it was 3 phase - for that price I sunk another 225 into it for a single phase motor - so for under 500 bucks - I have a compressor I couldn't touch NEW for less than 1800. Shake them tree branches - you never know what you'll find. FWIW - My "old" compressor was a 1946 Ingersol Rand - it is still working perfectly today - only reason I got rid of it was this "new" one was so cheap and had more capacity. Food for thought - anyways.
My experience is similar to Jacin's. I had an old DeVilbiss (1937 vintage) that I bought used 35 years ago, so it was old when I bought it. I realized that it was time for a newer (better condition) compressor, so I bought an IR type 30; 5hp 3phase 80 gallon tank off of Craigslist for $300. Purchased a new 5HP single phase motor for $250 and the new compressor works great. Anyway buy the biggest most expense air compressor that you can afford. Don't be afraid to buy an used one, as long as you can see it run first. Look around, there are some good deals out there.
stay away from the oilless models. next, type to skip would be the cast aluminum pumps. definitely bu ythe compressor you think is overkill for what you need. i have an 20 gallon IR that is every bit of 15yrs old, my dad bought it and gave it to me a few years ago when he couldnt really work on stuff anymore. it is definitely too small for the stuff i do. the aluminum compressor is kind of noisy. in reality the light duty IR are made by other companies and sold to home owners and such. it is a good compressor though. my dad used it as a fleet mechanic , he worked on fleet vehicles in a ware house and could wheel it around and pulg it into an outlet on the closest column, he used the **** out of it. i have used the **** out of it and have not had a single problem with it. my only complaint is, it just doesnt keep up with my needs. my brother has a 60 gallon husky from home depot. it is slightly better than mine but not much. takes for ever to fill when you drain it, the pump is cast iron, but it still is pretty noisey. stil lgood for a home owner working in thier garage though. i didnt want to spend big cash on a real good compressor, my bud gave me an 80 gallon SMITH that needed work, it is still a work in progress though. it had 2 pumps and 2 motors. but 3 phase, i thought no big deal, buy 2 new motors. one pump looked fresh. i tested the pumps with a motor i had and was toast. cant buy smith stuff any more. so then i basically had an 80 gallon tank, with one fresh pup that was too small and no motors, i thought about buying one motor and sticking the IR setup on it. but my bud found a huge devillbiss single stage. its amonster, so i bought a new baldor and motor for it. mounted everything still have to plumb the lines and wire it.