How do I use Bluetooth to sync my iPhone to my car radio?

I am in the process of getting an iPhone, but I also want to buy a new radio for my car. I know that there is a way for me to use Bluetooth to sync my iPhone to my radio. However, I know absolutely nothing about this technology. I think this will allow me to play music from my iPhone on my radio, but I’m not sure, I’m also not sure if I will have to purchase any kind of plan to make my phone Bluetooth capable. If somebody could help me understand the basic requirements, and maybe how it works, I would really appriciate it.

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