Our car has now all but died, so we need a new one..........................

The very first place to start Dory is with a budget. How much can you afford to spend? You already know the rough type of car that you want. But do you want something sporty, or "Mumsy". I will presume that you want a small family car. I have to say that you can do a lot worse than the Ford Focus or the Volkswagen Polo or Golf. Toyotas are good and the Skoda Octavia is as good as the Volkswagen and cheaper. Go to www.whatcar.com for a better feel. There is also stuff there about financing too. So you have the make in mind. Now you have to find the spondooliks! Some garages might take your existing car as part exchange. Don't expect much for it. You might be better selling it privately, but that can take some time. Garages will also often expect a deposit if the value of your car is insufficient - but not always. Now you have a number of options. The bank/Building Society will nearly always be the cheapest place to borrow money. I would suggest not borrowing from a car dealer unless you have no other option. However, there are car purchase plans provided by manufacturers usually, where you pay a deposit and then borrow money over a set period, typically three years, effectively paying the interest back. At the end of the period you still owe the capital price. You can pay this and the car is yours. Or, subject to a mileage agreement, they will take the car back, often as part exchange against a new one. If you don't part exchange then you have effectively "rented" the car for the three years. This method of purchase is popular with many but unless you come into money you are effectively tied to one manufacturer. You can, under certain circumstances lease your car under a private plan. These are not so common for private buyers, but do exist. The best advice that I can give you is to look at the What Car website or buy a copy of the magazine. What is often worth considering is a dealer's low mileage second hand car, or dealer's demonstration car. These will have been well maintained and still have most of their guarantee period left. I am sure that there is loads more that I haven't said. Good luck.

I have never bought a brand new car either dorypanda and I am not too up on the car financing apart from sometimes it is far better to go to the bank for a loan as the car financing with the garages can be far more expensive! Our car is falling apart but we can't afford to replace it I am afraid! xxx