Since it's a large investment, there are a few things that you can get right to getting closer to the 'best deal' for yourself. Read on to find out more.

Make sure you need a used car

Given the falling prices of cars and friendly EMI's for vehicle loans, a new car might be well within your reach.

But the utility of a used car goes beyond just the cost front. A used car might be ideal for someone who has recently learnt to drive. Being that bit cheaper than a new car, you could buy a used car that makes a statement although your pockets were never deep enough to buy the new one.

That's the benefit; half price, full status! At times, used cars might be a good deal if you go for a model that's just a year or so old. The deprecation is high on vehicles, so the price dip is considerable while the car is as good as new. Used cars also make for great family vehicles, especially when you need a common car at home for common use (read: liable to misuse).

Says Sumitra Babu, 47, a housewife: "My son needed conveyance to get to college and was insisting on a motorcycle. We did not buy him one as we thought it to be unsafe in city traffic. In a few months though, our mechanic suggested a good used car for almost the same price as the motorcycle. My son's overjoyed now and we are relieved about his safety."