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The allure of driving a brand-new car with the most recent number plate is as undeniable as it is expensive. However even if you can't afford or justify the expense of buying a brand new registration vehicle, you can take advantage of the new number plate registrations to bag yourself an automotive bargain. Such is the pull of driving a new plate car that lots of people decide to trade in their old car in March and September when the new registrations are issued. This seasonal oversupply can temporarily drive prices down, enabling the savvy buyer to pick up a used car at a very competitive price. But what should you look for when buying a used car, and what are the perils and pitfalls?

As a prospective buyer the first thing you need to do is to decide what type of car best fits your needs: do you need a nippy little city car or an executive saloon for long motorway trips? Once you know what you're after, consider which models might represent the best value for money in the second-hand market. According to motoring website Autotrader, some cars are worth just 30% of their sale value after just three years. When buying second-hand, it's worth looking around for vehicles that while still only a few years old and mechanically sound, have lost much of their original value simply because they've gone out of fashion or aren't as big a status symbol as their nearest rivals.

The Jaguar S-Type, for example, is about to be replaced by the new XF model; as a result demand for nearly new S-Types has dropped, enabling bargain hunters to pick up a luxury car at a bargain price. Similarly VW's Phaeton has the same mechanicals as a Bentley, but the VW badge put off buyers who opted for more status-laden Mercedes or top-end BMWs instead; the subsequent tumble in prices mean these class-leading cars can be picked up at amazingly low cost. Conversely, cars such as BMW’s fashionable new Mini is the slowest depreciating car on sale in the UK, so they won't represent much of a bargain in the second-hand market.

Once you've decided which make and model best suits your budget and requirements, you're going to need to know where to buy. Unlike buying new, there are a wide variety of ways to buy a second-hand car, each with their advantages and drawbacks:

Franchised dealers
Franchised dealers are a good choice for the inexperienced buyer as they generally offer high quality cars, offer approved used car schemes and lots of legal 'comeback' in the event of any problems. On the minus side, car and labour prices may be comparatively expensive, and there may be a fairly limited range of makes and models.

Independent dealers
Independent dealers can offer good prices and are much more likely to offer a discount than a franchised dealer. However, while specialist independent dealers are likely to really care about their reputation and offer a good service, the quality of dealers may vary significantly. Research the dealer if you decide to go for an independent.

Car supermarkets
Car supermarkets are a good choice for inexperienced buyers, although prices aren't usually as good as those found at independent dealers and the choice of stock is usually fairly limited. Be aware that some car supermarkets may sell very low mileage cars as new, even if they have actually had a previous owner.

Private sales
If you have some automotive knowledge and you aren't afraid to haggle, the best prices can be found with private sales. However ensure that you take the time to fully research your potential purchase; ensure that you are fully aware of the any particular mechanical weaknesses the model you are interested in might have.

Regardless of what you decide to buy and where you decide to buy it, there are some basic technical tips that even the least mechanically-minded need to bear in mind when buying a car. When inspecting a potential purchase it's worth mentally dividing the inspection into five key areas:

1. The interior
   Check the carpeting, seat fabrics, controls, switches and displays. Make sure lights work and that nobody has tampered with the odometer (ie, that the car hasn’t been ‘clocked’), by comparing general wear and tear with what the mileage suggests.
2. The bodywork
   View the car in daylight and check the whole car for bumps, scratches or signs of repair work. Open the bonnet and boot and check for dents or changes in paint tone which might indicate repairs after an accident. Also check rubber seals along the windows.
3. The engine
   Is the exhaust smoke free when the engine is warm? Also check the coolant reservoir; if it is empty or brown, there may be a leak that needs further investigation.
4. The test drive
   Look for potential trouble areas - for example, if the car pulls to the side there may be a tracking problem. Also, does the car judder while decelerating and/or accelerating? If so, you may want to proceed with caution!
5. The documentation and vehicle history
   Make sure the car comes with all the required documentation, including the registration document or log book, service and insurance records, MoT certificate, and receipts for repair and maintenance.

If you've done your homework, you know about the model and make, and you are confident that the car is mechanically sound and hasn't been clocked or repaired following an accident, you should be ready to start talking money - but keep your emotion in check and let your head, not your heart drive the purchase. Build a rapport with the seller but don't settle for the first price offered. Bid low and build up, and make sure you know how much similar cars are selling for at other private sales, independent or franchised dealers. Have a good look around for the right car finance. Taking finance from the dealer is not always the best option, so make sure you've done your homework to save money.

And once your shiny, nearly new car is sitting gleaming in your drive continue to shop around - this time for the best insurance you can find. BeatThatQuote.com is a good place to start, as is our handy guide to car insurance.