Look around before buying a new car and you can save money. Manufacturers are keen to sell and there are some bargains to be had, writes Malcolm Baylis, motoring editor.

JANUARY's car price-slashing war is likely to go on for a few more months. So desperate are manufacturers to clear the decks of cars standing around earning absolutely nothing that there are some extremely good savings to be made by customers.

Take Hyundai's new Accent 1.3-litre GSI. It's a three-door and comes in at £6,995, £1,000 off the normal list price.

An added bonus is that the Accent was recently placed third overall in a warranty survey for its low running costs.

The 1.3-litre used a four -cylinder 1,341cc engine and delivers 84.5bhp at 5,500rpm, and there is also plenty of power available at 3,000rpm, taking it from 0-62mph in 12.9 seconds. It can bomb along at motorway speed with ease. Economy is 40mpg at the combined rate.

Despite being the starting point of the range, the standard specification is good, including five-speed manual gearbox, driver and passenger airbags, anti-lock brakes, central locking, electric front windows, power steering, stereo-radio with CD player and three-point seat belts for five occupants.

There is £1,000 off and three years' free servicing with every Matrix GSI and SE models, as well as a year's free insurance and three years' free servicing on many other Hyundai models. All the cars have a five-year unlimited mileage warrant that is transferable.

Also coming up with money-saving deals is Mitsubishi. One of the most attractive offers is with the Colt Supermini. Buy one and get a £700 Smartnav navigation system thrown in and fitted for nothing.

The Smartnav package also includes a safe speed alert system and a push-button connection to reach UK roadside assistance.

Even Mitsubishi's much lusted after Lancer Evolution VIII is on the market with the offer of free servicing for three years (or 27,000 miles). This valuable deal was originally available only on the 260 model, but now includes the high performance MR FQ-300, FQ-320 and FQ-340 models. The 260, incidentally, is on offer until the end of March for £22,999, a saving of £1,000.

Others from the Mitsubishi stable on offer with £1,000 off include the Space Star, the roomy five-door hatchback, with the entry-level Mirage now £7,999 on the road.

The free servicing package is also being offered with the off-roaders, including the Outlander crossover 4x4 and compact Shogun Pinin range.

Suzuki, which has enjoyed record sales here for the 13th consecutive year, has also joined the ever-growing list of manufacturers eager to capture new customers.

Among the bargain offers is the new nought per cent finance deal on the Ignis 4Grip, a unique supermini offering five-door hatchback comfort with the practicality of a sports utility. This model is available for £9,699, and provides full-time four-wheel drive powered by a 1.5-litre engine.

Free servicing for three years is another new customer incentive, and is being offered on the £9,999 Liana saloon and hatchback models as well as with the £7,999 compact Wagon R+. There are also £1,000 discounts on the Alto city car, now £4,999, and there is a similar saving to be had on the high-performance three-door Ignis Sport, now £8,999 and the Grand Vitara three-door which starts at £10,999.

Finally, Kia is offering £1,000 cash-back deals on its Rio, Cerato, Carens or Sedona models, also until the end of March. It has also decided to freeze prices of many cars within its growing range: for example the Picanto stays at £5,495, while the price of the new Cerato 2.0-litre saloon remains at £11,990.

Dealers: Hyundai - York Hyundai, Great Northway, Nether Poppleton, York (01904 600600); Suzuki - Glen Garage, 12-14 Hawthorne Grove, Heworth, York (01904 425800); Mitsubishi - York Mitsubishi, Great North Way, York Business Park, Nether Poppleton (01904 600600); Kia - Ryedale Garages, Piercy End, Kirkbymoorside (01751 431343).

Updated: 13:00 Friday, January 28, 2005