Assessing your Budget and Needs

• If you just need a car to get to and from work, you will have different criteria than someone who does a lot of long-distance driving, or another person who hauls cargo or does a great deal of towing in a car. You should also draw up a realistic budget. While you don't want to buy a heap, flashy bells and whistles may add cost to a car that can be better applied to updated safety features or a newer model.
  
  

Research the Market

• Buying used cars has changed a lot since the days of the fast-talking dealer stereotyped in movies and on TV. One important change is that many used cars are pre-certified and come with warranties. This takes away much of the risk of buying a used car. Especially if you are in the market for a late-model used car, you may be able to find many, if not all, of the newest features available on new cars. Kelley Blue Book and Edmunds, among other services, provide comprehensive reviews of cars by make and model. Check out what's available thoroughly--compared with what you are seeking and your budget--to help you narrow down your choices.
  
  

Choosing a Used Car

• If you've found a particular car you like, you should research its history to determine whether there have been major repair problems or if it has been involved in a serious accident. Many car dealers perform their own inspections on their cars. Check out what is included in their inspections, but don't rely on them alone. CARFAX provides a vehicle history service for a very reasonable price. You will need the VIN number, which can be often found in the vehicle title or under the windshield. You should also have a mechanic inspect the car if it is not certified or does not carry a warranty. Nearly all reputable dealers will agree to this. Of course, you'll want to take the car out for a test drive.
  
  

Getting the Best Deal

• Run a price comparison for the make and model car you have chosen to buy, to get a range of prices. You can use this range to negotiate your final price with the dealer. If you are trading in a car, get the Kelley Blue Book value of your car and use that to negotiate a fair trade-in price.
  
  Loans are available through a bank or credit union, through online lenders or directly through the dealer. Obtain loan approval before you begin shopping for your car if you plan to seek financing from a bank, credit union or online lender. Your credit rating will also influence the financing you will be able to receive; especially the way you have handled car financing in the past.