Superminis, city cars, hatchbacks, saloons, coupés and convertibles, all from a huge range of manufacturers. Petrols, diesels and hybrids, manual transmissions and autos. Just how do you home in on the car that’ll best fit your needs and budget when the choice is so overwhelming? The answer is to research any potential purchase thoroughly, and here’s how.

Getting started
Although there are masses of makes and models to choose from, it’s often easy to discount many of them as they’ll cost too much to buy or run, they’re not practical enough or you simply don’t like them. The key is to create a shortlist of models that fit your needs, then research each one in more detail. There are many websites out there where you can review every car from the past decade or longer.
In most cases, cars are bought according to budget. You’ve either got a lump sum to spend on an outright purchase (new or used) or you can afford monthly repayments on a finance scheme, either on a new car or a loan against a used vehicle. Most new cars are funded on a PCP (Personal Contract Plan). If you don’t understand car finance just check out our blogs on your car finance options and how car finance works.
Buying a new car doesn’t have to cost a lot more than buying a used one. While a 10-year old hatch on its last legs will cost much less to buy than a new car, the bills for repairs, road tax and fuel will be higher – probably a lot higher. Take the new route and you’ll also be getting a car that’s more highly equipped and safer too; great strides have been made in recent years, to improve safety, efficiency, comfort and convenience. Only you can decide whether you want no-frills bargain-basement motoring or something that’s safer, more efficient and more reliable.
If you’re buying a new car, for more help on how to spend your money read our blog on choosing the best options for your new car . If you’re buying a second-hand vehicle you need to study our used car buying guide in detail. Whether you’re buying new or used the first step is to pin down what type of car you want. Your options are:

• City car: small, cheap to buy and run, great for urban driving but small engines mean they’re less suited to motorway drives. Think Citroen C1, Kia Picanto, Toyota Aygo, Volkswagen Up.
• Supermini: part-way between a small family car and a city car, the supermini is still small but usually has bigger engine options that make lighter work of longer journeys. Think Ford Fiesta, Vauxhall Corsa, VW Polo.
• Small family car: the most popular type of car across Europe as it’s roomy enough for the family, small enough to park around town but copes with motorway drives too. Think Ford Focus, Vauxhall Astra, VW Golf.
• Large family car: becoming ever less popular, these are spacious so perfect for carting the family on long distances, but buyers want SUVs instead. Think Ford Mondeo, Vauxhall Insignia, Audi A4, BMW 3-Series.
• SUV (Sport Utility Vehicle): every year these are getting more popular thanks to their elevated seating position and perceived safety credentials, but they can be costly to run. Available in several sizes including micro (Renault Captur, Peugeot 2008), compact (Ford Kuga, VW Tiguan, Kia Sportage) and full-size (Audi Q7, Range Rover, Jeep Grand Cherokee, Volvo XC90).
• MPV (Multi-Purpose Vehicle): These have fallen out of favour thanks to the rise of the seven-seat SUV and improved versatility within family cars, but they’re superbly practical for family transport. Some have five seats while others have seven. Think Ford Galaxy, Seat Alhambra, Renault Scenic/Grand Scenic.
• Convertible: very popular in the UK but one of the least practical types of car thanks to limited boot space and often just two seats. Think Mazda MX-5, Audi A5, Porsche Boxster.
• Coupe: another dying breed but one that offers style with a certain amount of practicality. Often cramped for more than two but boot space is normally okay. Think BMW 4-Series, Audi TT, Toyota GT86.

Once you’ve worked out which configuration suits you best you need to pin down whether you want a petrol or diesel engine. The latter costs more to buy, the fuel is more expensive and there’s more to go wrong, especially if you’re a low-mileage driver, but they’re more economical and the road tax is often cheaper. But an anti-diesel backlash is likely to push up the running costs. Hybrids and electric cars are also worth a look but these tend to be costly and not always as efficient as you might think; we’ll cover these separately in a forthcoming blog.
You also need to decide whether you want an automatic gearbox or a manual. Autos used to be inefficient and often rather clunky with small engines, but they’re generally much better now which is why they’re becoming increasingly common. Autos cost more to buy though, tend to be less reliable and they often increase fuel consumption too – but they offer greater convenience in stop-start traffic.
Road tax is another consideration. If you buy a car registered after 1 March 2001, the amount of road tax you pay is dictated by your car’s CO2 emissions. There are 13 road tax bands which vary between free (below 100g/km of CO2) and a whopping £535 (over 255g/km). Buy a car registered before 1 March 2001 and you’ll pay £150 if the engine is smaller than 1549cc or £245 if it’s bigger. If you’re buying a new car, we’ve produced a whole blog on the road tax system introduced on 1 April 2017.
Having put together a shortlist of suitable candidates, get a rough idea of what the running costs will be for each one and get insurance quotes for each one to make sure you can afford the cover. If you’re buying something old and cheap and you’re a high-risk driver, don’t be surprised if the insurance costs more than the car itself.
While it’s easy to be daunted at the prospect of buying a new or used car, if you do your homework you should see it as an exciting opportunity to try something new. Cars have never been better value than they are now, and you’ve never had more choice. Just see that as a good thing rather than a bad one.
Richard Dredge