The easiest way to save a stack of cash every year is to choose carefully when buying your next car.
First, make sure you don't pay over the odds for the car you want by picking up a Parkers Used Car Price Guide from your local newsagent - or check Parkers online.
Next, save hundreds even before parking your next car on your drive by carefully considering where you buy it. Prices of similar cars can vary hugely from dealer to dealer - some add a bigger premium to a car's book price than others. So shopping around dealers in your area could net you a serious saving. Compare prices at your local dealers by viewing their up-to-date stock direct on their websites, using our Car Dealer Directory.
Don't rule out buying privately. You're likely to save at least several hundred on dealer prices and be able to get a better idea of a car's history by talking to its previous owner.
If you're concerned about buying a lemon (even after reading our KwikGuide to buying a used car), get the car professionally inspected. Organisations like AimVI and the RAC offer expert inspection services costing from around £100.
Even if the inspection shows up a minor problem, you can use it to haggle a discount off the price. So it's possible the inspection will more than pay for itself. If a more serious problem is discovered causing you to decide against the car, you could potentially afford to have several cars inspected with the money you're saving over dealer prices.
On the downside, buying privately will mean you won't have a dealer's warranty. Although if you'd prefer the peace of mind, warranty packages can be bought separately. The professional inspection should show up anything really serious before you buy, but if anything does go wrong, you'll have already saved on the price.
Click to read more about where to buy a used car.
But what should you buy to cut your costs? Due to more people buying cars new, used car prices are crashing. Anything around 8 years old or more is now considered virtually worthless and so won't hit you too badly with the biggest car-ownership cost of all - depreciation. Yet choosing carefully from cars like this can still net you a tidy, reliable car. See our page on avoiding depreciation.
Good deals can also be found by looking for un-loved, often saloon, versions of popular hatchback models. For example, a used Volkswagen Bora can be around £1,000 cheaper than a same spec Golf or a Ford Focus saloon around £500 cheaper than the hatchback. For particular bargains, look at long-replaced models that, even if still low mileage, due to their age or outdated style can rarely be priced highly. For example, the Peugeot 405, Citroen Saxo or Ford Escort - think ideally of high volume models, of which there'll still be plenty around.
Or for similar quality cars at a lower price, look at the cheaper-brand cousins of the premium makes from the big car groups. For example, from the Volkswagen Group, the Skoda Superb is an almost identical car to the VW Passat, and the Seat Alhambra MPV basically the same car as the VW Sharan. Yet neither command the premium price of the VW model, new or used.
Finally, don't be irrationally afraid of high miles. If regularly serviced, most car engines will comfortably do well over 100,000 miles these days. A high mileage car that has spent most of its life on the motorway is likely to be far more reliable than a low mileage car that's been maintained on the cheap or only been used on short journeys. So don't run from high numbers - look at the circumstances.
