As with any other type of major purchase buying a car needs careful consideration and all the best options researched before you make a final decision. The amount you pay for a new car will be dependant on a number of different factors.

1. The make and models of cars vary considerably in price, with the luxury and executive models commanding the highest prices. Therefore it is imperative to be realistic and look for cars which are within your price range and budget.

2. There are few people who but a new car outright, most opt for a finance arrangement in order for them to replace their cars approximately every two or three years. There are a number of different finance options available from a number of different sources. These too should be given careful consideration.

* Avoid borrowing money from non-reputable places or companies as their interests can be extortionate.

* Look into taking out a personal loan from your bank, but be careful with the amount of Annual Interest Rates, this if usually simply referred to as APR, as this can also be very high. However, having a loan from a bank if far better than entering into a deal with a loan shark.

* Look for dealerships who are offering 0% finance deals. These can potentially save you hundreds of pounds and are a ideal way of getting the car you want straight away.

3. It is important to have a fixed amount of money you can realistically afford decided upon before entering a car showroom, as it is easy to be swayed into buying a car which you find you are unable to keep up the repayments on. If this is the case the car can be reposed and/or court proceedings taken out against you to reclaim any monies outstanding.

4. Don’t be shy about bargaining! Remember it is a buyer’s market at the moment however you also need to be realistic in what you ask for and expect to be offered.

5. Look for dealerships who are offering incentives such as ‘cash back’ or ‘cash off’ offers which can potentially save you hundreds of pounds off particular makes and models of cars, sometimes this can actually be more cost effective than 0% finance offers.

6. Take time to understand the details of any financial agreement before signing the paperwork. 0% finance is an excellent way to save money however, you may have to pay quite a large deposit and generally the repayment terms are for short durations only.

7. If you have an old car which meets the criteria of the government’s new scrappage scheme you could save two thousand pounds off the price of a new car.

8. Look for dealerships who offer the scrappage scheme and are offering 0% finance to get an excellent deal on a brand new car.

9. You should be aware that no-one automatically qualifies for 0% finance offers. There will be credit checks carried out and if you have a poor rating, this is usually under seven hundred points, you will most probably not be given the option of 0% finance.

10. As with any major purchase weigh up all the options before committing to a 0% car finance agreement.