Many buyers, whether using cash or car finance, might be surprised to learn how much they could be saving on both new and used cars, by taking a few simple steps.

Firstly, do you need a new vehicle? Cars typically devalue by 20% as they are driven from the showroom. Meanwhile, new vehicles attract a 15% VAT charge. Nearly new cars are everywhere, including demo models and rental cars. Pre-registered vehicles may also cut costs.

Haggling, whether new or used, should always be attempted. The motoring editor of Which? Richard Headland has been reported as saying: 'Don't ever pay the listed price. The biggest discounts tend to be on new cars because dealers are often subsidised by the manufacturers. You should get 10 per cent plus off new cars and at least 5 per cent off second-hand models.'

Choosing the right motor finance means considering the total cost for comparison. Car dealers quote a flat rate of interest, buyers need to consider APR. Some car companies are still offering 0 per cent motor finance deals.