The European commission dealt a blow to UK car buyers today as it revealed that in the UK we are paying up to 60% more for new cars than car buyers on the continent.

Not only this but, although prices are cheaper here than they were two years ago, the Alliance & Leicester car price index that car prices are now rising again, albeit slowly.

So, if you are in the market for a new or used car - and many say now is the time to buy - how do you make sure you get a great deal?

1. Get surfing

Websites are proving to be the consumers' champion, driving down prices and raising awareness of bad practices, such as the high prices charged by some local dealerships. Check out what's on offer online at sites such as Jamjar or Oneswoop.

2. Investigate imports

Buying abroad can still be cheaper and again the web can help you do your research. The Consumers Association produces a fact sheet called Importing a New Car on its website. For sales, check VirginCarbusters, and Carimportuk.com.

3. Get the right finance deal

If you don't have credit problems make sure you don't pay over the odds of finance. There is a range of options on offer but it is crucial to always be aware of the total cost of credit. Get quotes from several providers and beware of costly loan protection insurance - this is often riddled with exclusions and not worth buying.

4. Don't write off write-offs

If you are an experienced car buyer, you could pick a real bargain as some write-offs can safely be made roadworthy again. These are categorised by the Association of British Insurers from A - where the vehicle needs to be crushed to D - where damage is relatively minor.

5. Go under the hammer

Consider car auctions for some of the keenest prices. Again, you need to know what you are doing, so consider going for a dummy run and check out the small print on areas such as warranties. Daytime auctions are considered to offer the best bargains. Evening and weekend sales tend to be the haunt of private buyers rather than dealers and so prices are pushed up.

6. Check out a used car's history

A full check is available from companies such as HPI or the AA. These cost about £30 and will tell you if the vehicle is stolen, has outstanding finance owing or has been written off by an insurer.

7. Quality counts

If you want a reliable used family car, be prepared to spend more on a quality make. Estate cars don't cost any more to run than the hatchback or saloon models but have far more storage space.

8. Watch the clock

Beware of high mileage cars, particularly those without much service history. Replacing the engine or gearbox could cost more than the car is worth. Some cars are far better bets if they have a lot of miles on the clock. These include Audi, BMW, Saab and Volvo.

9. Do your homework

There is a wealth of information available to help both novice and experienced car buyers. One of the latest guides produced is from Yell.com, which provides information on car servicing and maintenance and advice from TV guru Quentin Wilson.

10. Be aware of hidden costs

Before buying, always take into account areas such as petrol, oil, servicing, repairs and depreciation.

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23.07.2001: UK car prices highest in Europe