With the beginning of a university term, the prospect of buying a new car strikes the minds of parents and students alike.

Style and accessories aside, students going to university or colleges are being advised to buy cars which promise them fuel economy, lower taxes and lower premiums on car insurance.

According to a price comparison website, the car market today is rife with cars that offer these features.

Among the better choices are the Ford Ka, on the road (OTR), The Fiat Panda 2004 (OTR) and the Peugeot 206, 2003 (OTR). These cars are priced at £2,491, £2,995 and £3,245 respectively.

According to the marketing director for the website, whether you are a student looking for a vehicle for within the limits of a specific budget, or a concerned parent, looking for the right car is no mean task.

It is hard to find a car that satisfies all three prerequisites of lowered taxes, cheap insurance and fuel economy.

In the related market of used cars, there is news that the prices for used cars have gone up drastically over the last six months. The price of used cars has gone up by an average of 30 percent.