If you are looking to buy a car then the chances are you will have considered the second hand or used car market. By shopping around you can make some great savings and in the "nearly new" car market in particular you can often slash the cost that the original owner will have paid for the car when new.

Buying a car of any age is not a decision that should be rushed. Aside from buying your own home, the purchase of a car is likely to be one of the most expensive purchases you will make and if you get it wrong it can prove costly.

There are two major factors to consider. Firstly, the type of car you are looking to buy and secondly where you will but the car from. Buying the car from a private individual can save money but comes with less security than buying from a recognised car dealer.

Once you have decided to buy a used car then you should consider the following points and try and stick to them:

Budget
What can you afford to pay? Do you have a deposit or a car to part exchange? What monthly financial outgoings can you realistically commit to? Bear in mind the additional costs of running a car such as tyres, fuel, servicing, MOTs and depreciation. Be sensible about the budget. There is little point buying a car that you cannot realistically afford to keep or run.

Payment
How will you pay for the car? It is likely that you will be paying a significant amount of money. Many car dealers have finance schemes in place but check the APR % rates as they can be high and compare them with bank loans. Also, check the loan type. Will the deal offer complete ownership of the car after the specified payment period or does the loan have a balloon payment at the end, where you can either pay off the loan in full or simply hand the car back? Shop around for finance deals in order to get the very best interest rate.

Car type
What will you be using the car for? Does it suit your needs? If you need to transport a family, perhaps with a pram and car seat then a super-mini may not be ideal. Look at what you will actually need the car for. You need a car to work for you, not against you.

Distance
Will you regularly use the car to travel long distances? If the answer is "yes" then pay close attention to the fuel consumption. Also, arrange a test drive prior to purchase to see if the car feels comfortable and relaxing. If you are driving it for long periods of time then it needs to offer you a pleasant driving experience. You should also consider the fuel type, as diesel engines are widely recognised as being more fuel efficient than petrol cars and are therefore an attractive option if you drive long distances.

Shop Around
Always do your homework, especially in the second hand market. Get a feel for the prices of your target used car so you know when you have found a good deal or when you should haggle the price down. Use resources such as Auto Trader, Glass' Guide and WhatCar magazine. Don't be afraid to visit a variety of dealerships. There are independent and franchised dealers in many of the major towns and cities within the UK offering a variety of deals.

Test Drive
Always drive the car prior to purchase. You can get a good feel for its mechanical state through a test drive and also discover if the car physically suits you.

Haggle
The used car market is competitive so don't be afraid to offer the seller less than the advertised price. Your offer may be rejected but you can then make a counter offer. It is likely that you will reach a price that both you and the seller are happy with.

Safeguards
If you are buying from a private individual in particular then there are a number of things you should remember. Firstly, always view the car in the daylight, never at night. Secondly, try and avoid going to view the car on your own - two pairs of eyes are better than one and you are less likely to feel intimidated or forced into buying. Thirdly, you should insist on checking all the car's relevant paperwork such as the V5 logbook, MOT certificates, service history etc. If the V5 logbook cannot be provided WALK AWAY - it's not worth the risk.

For additional peace of mind you can pay for a private HPI check. This will tell you if the car has been declared as stolen, or been involved in a total write off claim. You can also organise an independent inspection of the car, using a body such as the RAC who for a fee will check the vehicle over and identify any problems.