Check you have considered what you can afford. Go to Planning to Buy Checklist

Research and understand what APR and other names for interest rates mean .

Cash: Useful Calculator

Good for negotiating with private buyers.

Bad for dealers who get commission (which you pay for) on finance.

Has security problems. You need receipts for deposit/final payment.

Bankers Draft:

All the advantages of cash but and more secure

Dealer Finance:

Check real interest rate against bank loan

Can be good, but don't sign up until you are sure the figures add up

Always examine written quotation

Bank or Building   Society loan:

Check interest rate bank proposes

Check for hidden costs like arrangement fees

Get written quote, take home and think about it, with a calculator

Personal Contract Plan:

Take time to study written details & understand exactly what this means

Hire Purchase:

Check interest rate, it will be higher than some other methods

Realise you don't own car until last payment is made

Check penalties for paying off early.

Always examine written quotation

Credit card:

Unless you are adept at changing cards or have special circumstances this could prove very expensive

Payment protection Insurance:

Be exceptionally cautious about PPI and research/get advice before buying