You have three options for lodging at Bonnaroo.
The cheapest and most popular is camping out. This is included in the price of your ticket. Load up the car with all the goodies you'll need, bring a tent and few sleeping bags and you are ready to go.
If you aren't quite camping 'material' then you can rent and RV and 'camp out' in that. I believe there is an extra few to park RVs but you certainly won't be the only one doing it. You'll be just as close to the music and the main festival grounds as those that decided to camp.
Your last option is to get a hotel in nearby Manchester. The main downfall to this is you have to commute to the festival every day and then commute back at night. After a day of festival going many peope are in no 'condition' to drive back to their hotel.
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