Research the market thoroughly by reading a wide range of reviews online and in magazines, and by talking to friends and family about the cars they own.

Think about what you can afford. Don’t just consider the sale price but also take into account running costs such as fuel, tax and insurance. The type of car you buy will affect your Churchill Car Insurance. For example, a car with a smaller engine will be cheaper to insure.

Also, remember that cars are now taxed according to their carbon emissions. You can find out more about this at Car Fuel Data.

Don’t forget to think about how you will use your car. If you have a family, for example, don’t start looking at souped-up sports cars; don’t pay a premium for a diesel engine if you have a very low annual mileage.

Don’t be afraid to haggle over the price. It is a competitive market and you don't have to pay the full asking price, see if you can get something free thrown in – even if it’s just a full tank of petrol.

Once you have agreed a price, don't automatically accept the finance deal offered by the seller. Instead, shop around online to see if you can get a better one.