However, buying a used car is still a bit of a gamble - there is no guarantee that the car is accident-free, has real mileage, and was properly maintained. There may be some hidden problems like a worn out automatic transmission, or engine problems that may not have been obvious when you test-drove the car. So, next you must ask yourself: Will I save money when buying a used car? How do I eliminate the risk of potential problems and is this actually possible to do? Read on to find out more information.

First, be prepared. Do as much research as you can. Read reviews, consumer reports, ask colleagues and friends, compare options, gather gas consumption data on the make and model you're interested in. Examine reliability ratings. Try to determine maintenance costs and upkeep, etc. Your goal should be to narrow your search to one or two models. Why? Because if you just enter a dealership without knowing what you want, chances are more likely than not that you won't be happy with your purchase. Later you may find out that it's simply not exactly what you wanted or what you can afford. Someone I know bought a used BMW wagon for quite a reasonable price. When he went for servicing, they discovered that the rear shock absorber was leaking. The price for the part alone was close to $1000! Finally, he sold his BMW and bought a used Camry that proved less expensive to maintain.
Another purpose to narrow your choice down to only one or two models is because when you test-drive a few different cars of the same model, it will be much easier for you to compare their condition and pick the best one. Recognizing a transmission problem during your test drive would be easier to do if you were to try a few vehicles of the same model instead of becoming confused by testing out different models.

Second, without a doubt, you should check a car's history records. This will help you to eliminate half of the vehicles from your list with potential problems. Vehicles that have been flooded or restored after serious accidents, those with rolled back odometers, heavily abused vehicles (e.g., ex-rentals), those with outstanding liens, etc., can be eliminated after simply checking the history record of the vehicle. In fact, it is not even a good idea to look into a car until you check its history.

Third, Don't buy based on what you've been told because it may not always be the truth. Check out the car yourself very carefully. Ask a knowledgeable person who knows about cars to help you.
As a final step, bring the car to the mechanic you trust for an inspection. A word of caution, NEVER give a deposit or sign a contract before the car is inspected.

Fourth, Be extremely careful when doing the paperwork. For example, if you buy from a private owner, make sure there are no registered liens against the vehicle and that the person who signs the Bill of Sale is the actual owner of the car. Check with the Vehicle Registration Authorities to make sure the car has not been stolen.
If buying from a dealer, read the warranty policy and all the papers including the fine print very carefully. If it's a "Certified" used car, you'd be wise to check exactly what items were checked off and approved because sometimes the car might have a history of an accident in the past, come with a poorly maintained engine and still be Certifiable. Do not rely on a salesperson's verbal promises. Whatever is promised, get it in details in writing. Find out if the remaining original warranty will be transferred into your name. Different manufacturers have different warranty policies.

Don't look for cheapest car. When it comes to used cars, "best deal" doesn't mean the cheapest one. Your goal is to look for a car in good condition for reasonable price. If you choosing between relatively cheap car that might have an accident in the past or was poorly maintained, needs some repair, etc. and more expensive one that is in excellent condition, I'd without a doubt choose the more expensive one. You will simply save on repairs and will have less troubles driving it. Don't think they sell it cheap because they don't know the price or they simply want to clear their inventory. If they sell it cheap, definitely there is something wrong with it. Remember, proper price for a certain used vehicle is not the one indicated in blue or black book - they give you just an average price. The actual vehicle value big time depends on a car condition. Two cars may only look the same. One may have been maintained so poorly and the engine won't last long after you buy it. Previous owner of another vehicle may have been religious about maintenance, was using only synthetic oil, has done the rustproof and so on. Without a doubt, I'd rather pay $2000 more for this second car just to have peace of mind driving it.
So, how to determine how much you will have to pay for a certain model?
Just to show you as an example, I search Ontario used cars for sale website Autotrader.ca for a three years old Honda Accord. The search result gives me more than 200 vehicles with the price ranging from 12,000 to 22,000 CAD. To be realistic, I know that for 12,000 I will not be able to buy something really good. 22,000 CAD seems to me too high. But there are quite a few cars for 17,000 - 18,000 price range - this looks more realistic to me. I also know that most new car dealers will be able to give me a discount from 1,000 to 3,000 CAD if I use proper negotiation strategy (read below). So, in our case with three years old Honda Accord, I'd probably will be able to get the one in a good condition for 15,000 - 16,000 CAD depending on mileage, options, etc. You can use the same strategy everywhere; whether is Miami Florida or Winnipeg Canada.

Set yourself a firm limit of how much money you want and can afford to pay for a car. The process of buying a used car can be time-consuming and stressful and it might be difficult to resist the urge to buy more expensive vehicle, especially when higher total price is hidden under "low" monthly payments. Often dealers could try to push you into buying more expensive vehicle to increase their commission. In fact, this is very common situation when people rush into buying a car or a truck only to realize later that they cannot afford paying for it. Thousands of people are searching the Internet for an answer to "How to get out of a car deal?" You want to buy something that you can afford, something that will not put excessive financial strain on your family budget, so you need to set yourself a firm limit.

Let's take a look at some prices:
$10,000-$18,000 - This is the average minimum amount of money one would need to spend on a 'decent' car 3 to 4 years old. This would be a typical car (not a luxury car) sold from a new car dealership. They usually have, what would I recommend as a perfect choice, traded in one-owner certified vehicles that were sold new and serviced at the same dealership. Sometimes you may find such a car from a private owner. Usually such a car may last for another few years relatively trouble-free if properly maintained.

For $5000-$9000 you may be able to find a 6 to 9 year old used car with relatively high mileage which still might be in good shape. However, it may take a lot more time to find a good condition used car in this price range. Typically, independent used car dealers sell cars within this price range.

For $1000-$2000 you may be able to buy something that can serve as simple transportation to get from point A to point B. More than likely it may be a car with high mileage sold by a private owner. Dealers usually do not spend time selling cars or trucks in this price range. However, be prepared to spend much more money to keep such vehicle running.

I can tell you, you won't get a good deal if you just browse from dealer to dealer without knowing what kind of car you are looking for. The first step - You need to decide what exactly you want. Do you need simple transportation to drive to work and back? If so, a small Sedan would suit this purpose. Do you want a car to be very economical? If so, you would want to select a car with a small engine. Don't expect to find a V6 or V8 engine or 4WD truck if you are looking for something really affordable. Are icy roads common in your area? If this is the case, then you need a car with ABS. If you want to use your car to tow a trailer, then you will have to consider a car with more powerful engine. Once you've decided on what type of car is best suited for you or your family members, and you know what you want, check out the market, see what models are available, and see what fits into the price you can afford. Following this you will be able to narrow your search to just a few models. Then compare the reliability rating and read more reviews. Don't forget to check insurance rates, get the quote before buying a car.

The cost of insurance varies a lot depending on the make, year and model of the car, driver's experience and many other factors. I definitely recommend to get insurance quotes before buying a car.
Follow these links for auto insurance quotes:

For US:
GEICO Geico is third-largest private passenger auto insurer in the United States as reported by A.M. Best 2008 market share data. You can get an insurance quote online.
Travelers - Travelers is one of the largest providers of property and casualty insurance products in the United States - according to the company website.
21st Century Insurance Company - online quote.

For Canada:
TD Insurance
RBC Insurance
PC Financial Insurance

In general, I would not recommend purchasing a car with a very high mileage, for example, 250,000 km (155,000 miles) and higher would be considered very high. However, "low mileage" does not necessarily mean it's going to be a "good car". Be aware of cars that may have undergone restoration after a serious accident or cars that haven't been property maintained, or cars that may have had their odometer rolled back - nowadays they can easily 'fix' even electronic odometers. Again, checking a car history records will certainly help to avoid those lemons with "fixed" odometer.
When considering the 'mileage' count, it simply means that when choosing a car whether it has 60,000 or 80,000, it is not as important as the fact that it was well maintained and accident-free.

I would not recommend buying an old car even at "bargain" price; no matter how many new parts you put into it, it will be still an old car that will need more and more repair later. Simply scratch out from your list anything older than ten - twelve years. Perfect choice will be three - five years old car because the price is greatly reduced and you will still have few trouble-free years.
One important detail: 2000 is a model year, not the production year. The car produced in august 1999 may carry 2000 model year as well as the one produced in July of 2000. This is related to all cars and model years. To know exactly, look for the first registration date in the car history report.

New Car Dealers, Used Car Dealers and Private Owners will have used cars or "re-sale" cars. Personally, I would suggest that the best buy for you would be to purchase a car that has been very well maintained (preferably at a dealership) and has never gone through an accident or other major problems. Most likely you'll be able to find such a car sold privately by the original owner or at a new car dealership where it was traded in. The price for a used vehicle is usually higher at a new car dealership. However, paying a higher price may provide you with all the service records for the car. Most likely, the previous owner may have taken the car specifically to the dealership because he/she felt it was maintained very well, instead of taking it somewhere else to be traded in. You're more likely to find a well maintained car through a dealership because previous owners have taken care of their car very well because they value it, and the dealership is more than likely to be particularly about the condition the car is in to ensure it has a high quality.
Now let's discuss other places to buy a used car. Independent used car dealers will offer used cars at a less expensive cost but more often than not, you'll find a cheaper car but it will have been less maintained. A word of advice: try to avoid dealing with curbsiders. Here's what happened to someone who contacted me and then went on his own to buy from a curbsider: A person contacted me and in an effort to save on taxes, arranged the deal as a private sale. Later the buyer checked the history and found the car was written off in a different State in the USA due to an accident and the mileage was noted to be a lot higher than the curbsider stated to him. After repeated attempts this person cannot even locate this "dealer".
On to the private owner… Quite often you can find a good car for a reasonable price from a private individual, and usually they will be more flexible in terms of price but keep in mind that they do not offer any warranties.

It may be a good idea to take the time to make phone calls and enquire to confirm all vehicle information that is important to you: mileage, color, transmission, Air conditioning, ABS or for any other options that may be in your interest. You may find a car to suit your purpose but it may not have all the essentials you really need. For example, you may find a car without air conditioning (A/C) but it will meet your needs in all other aspects. Similarly, you may find a car that is a two-door but you have a family of four and it would be much more suitable if your purchase was a four-door.
Who is the Owner? How long has she/he owned this car, and how many owners were there before of this same car?
Answers like: 'This is a friend of mine's car', or 'I bought it a couple of months ago' may indicate something suspicious. You need to deal with the actual vehicle owners and he/she has to sign the bill of sale. If one sells the car after just a few months, this may indicate that this car has a problem or the seller is in the 'curbsider' business.
Did the car have any accidents, major repairs done? Where has it been serviced and are there any records available for you to review?
Don't expect the seller to provide you with complete information. He/she may be unaware about previous accidents or other problems. Refer to the vehicle history report and the result of mechanical inspection. I wouldn't recommend buying a car after an accident or after a major repair, e.g., a re-built engine or transmission.
Is the car drivable now? Does it have any problems or concerns that need to be solved? The car may not have valid license plates or insurance or have some mechanical problem at the time you are conducting your search. Therefore you won't be able to test-drive it.
Here is the short list of questions to ask:
- When did you buy the car? How many previous owners? Current mileage?
- Any previous accidents? Major repairs? Any repair needed now?
- What's the mechanical condition? Any concerns?
- General condition of the car? Interior? Exterior?
- Any rust? Scratches? Any other damages?
- Where the car has been serviced? Are the service records available?
- What is the reason for selling the car?
- Any liens?

Often when you use a proper negotiation technique you can get a reasonable discount. Here are a few proven tips:
1. Start negotiating from the beginning. Try to get a discount from the very first time you phone about the car. If they ask for $15,000, ask them if it's worth to come if the $14,000 is your bottom line, considering that you are the real buyer. Usually they won't say "No", which means that when you come, you can start negotiating down from $14,000, not from $15,000
2. Negotiate the total price. Dealers always like to add some additional fees on the top of the sticker price. Ask to calculate a total price "on the road" and use it for a negotiation.
3. Make a lower offer. Don't be afraid to make a lower offer. If they are asking $15,000, offer $13,000. If the salesperson believes you will really buy a car, he/she will go down in price, and maybe you will then get the car for $13,800 or thereabouts.
4. Be ready to leave if you feel any pressure or if you have any hesitations about the car - there are so many other cars available. You don't have to decide immediately. Do not give a deposit or sign anything until you are absolutely satisfied with the car and conditions.
5. Nothing works better than competition. Let's say you have two cars on your list that you're interested in. Show it to the salesperson and say you will buy a car from whomever gives you the better price. For example, if one of the salespersons offers you a $500 discount, phone to another dealer on your list and ask them if they can match it.
6. Whatever is promised by a dealer, ask to confirm in writing. Negotiate all the details of the deal. If the dealer promises to install new tires, make sure you agree on what kind of tires - cheapest available or of a well known brand like Michelin or Goodyear. If there is some kind of warranty that comes with the car, make sure you understand all terms and condition. If the dealer promises to show you all service records, make sure you check them before paying for a car.

Do Check a used car history report. This does not give you a 100% warranty that the car is OK, but may save you some money if it will show you some bad records, for example, if the car was written off after an accident or has had an odometer rolled back.
Do ask someone knowledgeable to inspect the car for you; it may save you a lot of money.
Don't buy a car after a serious accident - especially following a frontal collision. You wouldn't believe how many possible problems may arise later as a result of an accident.
Don't buy a car as soon as you see it. Take your time, test drive the car as long as you can. For example, some problems may only be caught when the engine is cold while other problems may only be discovered when cruising at highway speeds, etc.
Don't base your decision on what you have been told. "One Owner, highway driven" in fact, may be an ex-rental, heavily abused vehicle.
Don't buy a car if you have reservations or hesitate for one reason or another…if you don't have a good 'gut' feeling about it. If the engine seems too noisy or works as if it is in rough shape and sounds heavy, the transmission shifts harshly, some works needs to be done, something seems to be wrong with the papers, etc. - move on.
Don't buy a car if it needs some "minor" repairs. Often this results in spending big bucks for repairs that never seem to end.
Don't buy a flooded car; it may look good and still be drivable but later a flooded car may develop many expensive to fix problems: corrosion, electrical, electronics, wheel bearings, transmission, etc.
Don't be rude to a salesperson at the dealership. Regardless of the many stereotypes we share, many salespersons are genuinely nice people. Be persistent but not rude; treat them well and they will be willing to help you...