THERE'S never been a better time to own a classic car, according to Classic Cars magazine.

"The wide choice of good quality classics and the financial advantages make them irresistible," said editor Martyn Moore.

There are big financial incentives to running a classic.

Cars built before the end of 1972 are exempt from road tax (you still have to display a disc, but it doesn't cost anything), and if you insure your car with a specialist and agree a low annual mileage, premiums can be surprisingly low.

Even cash-for-car company vehicle drivers should consider the classic option because the tax penalty is based on the purchase price of the car when it was new.

And, unlike a modern motor, a classic bought for £7,000 today will still be worth at least that in three years if it is well maintained.

If you are thinking of buying a classic but don't know how to go about it, here's some useful advice.

Set your budget. Fun classics start at a lot less than £5,000, but hold back some money as a running fund for parts and servicing.

Decide how you will use the car. Will it be driven every day and do you need room for kids and a bootful of shopping, or is it summer Sunday fun for one or two?

Where will the car be kept? A convertible will be happiest in a warm, dry garage. Saloons are better able to cope with living outside, but consider a protective cover.

Seek the advice of an expert. A local classic car club will have lots of enthusiasts to help you narrow down your choice.

Go into each model in more detail, once you have settled on three or four likely candidates. Magazines can be very useful, especially if they have websites and can offer copies of reviews and tests from back issues.

Next, approach the owners' club. Find out what spares availability is like. Thanks to the efforts of organisations such as the MG Owners club, entire cars can be assembled from the spares stock. Make sure your marque has a good support network.

Consider how much work you want to do on the car yourself. Older cars are often quite simple and home servicing can be rewarding and fun. If you are leaving the mechanics to somebody else, think about who can do the work in your area.

Do not rush into it. Take your time, see several cars and be prepared to travel. Planning a trip to look at a car or two can be a pleasant way of spending a weekend as long as you do not let the distance pressure you into buying the wrong one.