• Buying a used car is not without risks. There are plenty of scam artists and unethical dealers willing to roll back odometers and gloss over a vehicle's true history. Fortunately, there are ways to protect yourself. With some preliminary research, a critical eye and a commitment to getting what you want, you can get the best possible deal on a reliable used vehicle.

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• When budgeting to buy a car, remember that the cost of the vehicle isn't the only cost you'll encounter. Take the following into consideration when deciding whether or not you can afford to purchase a car:

1. Insurance: Different cars. Different cities. Difference insurance premiums. Talk to an insurance agent about how to lower your potential premium. There may be breaks for installing an alarm system or driving only a certain number of miles per month.
2. Cost of the Car: Use The Motley Fool's "What vehicle can I afford?" online calculator to figure out how much you can spend on a vehicle without breaking the bank.
3. Maintenance and Repairs: Unless you're a bit of a mechanic yourself, expect to spend anywhere from $25-$100 every 3,000 miles for basic maintenance and $400-$1,5000 every other year for more substantial tune-ups.
4. Fuel: With the rising costs of fuel, you can expect to spend a minimum of $100 per month on gas.
5. Licensing and Registration: Before you can drive off in your new set of wheels, you'll have to pay for its license and registration. The cost of registering a vehicle varies from state to state, but the cost per year will decline as your car's value depreciates.
6. Parking: If you live in a crowded, urban area or commute to one, you'll need to take the costs of parking into consideration.

• If you don't have enough money for a new car, but are afraid of driving off the lot with a warranty-less used car, consider a certified pre-owned vehicle. A certified pre-owned car is a used car that comes with a dealer guarantee and an extended warranty of 3 or more years. A certified pre-owned car will cost you more than a used car, but considerably less than a new one.

• There are several different ways to search for a used car.

1. Private Owner: You can find owners selling cars through websites like Craigslist or eBay Motors. Privately sold cars are typically less expensive than those sold by dealers. However, you are buying the car "as is," and there's a great chance of the car being stolen or poorly maintained.
2. New Car Dealers: While new car dealers will have the highest asking price on used vehicles, they are your best source for certified pre-owned cars. They may also offer financing deals and warranties.
3. Used Car Dealers: While used car dealers rarely offer warranties, they typically price their inventory lower than a new car dealer selling a trade-in.
4. Rental Car Companies: National rental car companies like Enterprise and Hertz sell used cars. They are typically basic cars with few options. However, they are inspected regularly.
5. Car Superstores: The used cars sold by companies like CarMax and AutoNation have undergone extensive inspections and come with warranties. However, their prices reflect the care put into the automobile and cannot be negotiated.

• Once you've identified a used car in your area that you'd like to check out, call the seller and set up a time to pay a visit.

1. Setting Up the Appointment: When you speak with the seller be sure to ask why he or she is selling the car, how many miles are on it and whether or not he or she has the car's maintenance records. The seller probably won't have all of the vehicle's records, but by asking questions, you've already put him or her on the defensive, which will help when it comes time to negotiate.
2. Inspect the Car: Be sure to examine both the car's interior and exterior. You are looking for rust, imperfections, cracks in the glass, leaks, that the locks and windows work, the odometer reading, etc. The car's wear and tear should reflect what the seller has told you about the car.
3. Inspect the Engine: Look for any surface flaws. Pull out the dipstick. The oil should not contain any solid particles. Look for cracks or looseness in any of the belts, hoses or wiring.
4. Inspect the Driveway: While someone can conceal a car's physical imperfections, it's much harder to conceal a driveway's. Look for evidence of leaks and spillage.
5. Test Drive the Car: Start your test drive slowly. Ask the seller about any unusual sounds. Run the A/C, the stereo, the power windows, the wipers, the brakes, the steering, etc.
6. Do Not Buy the Car: Now is not the time to pull out a cash deposit. You still need to check into the car's history and have it inspected by a mechanic. Do not lay down any money no matter what.

• It's plain and simple. Do not buy a used car without getting a vehicle history report. A vehicle history report will tell you:

1. The most recent official odometer reading
2. If the car was flooded, sold at auction or in an accident
3. The number of owners and the dates each owner took possession
4. When the dealer received the car

• Having this information will let you know whether or not the odometer has been rolled back, if a succession of owners dumped the car quickly, if you are being misled by the seller and, if you're buying from a dealer, how long the car has been on the lot.

• One of the best ways to figure out whether you're buying from an honest seller is to have an independent mechanic inspect the car.

1. The inspection should take an hour and cost $50-75.
2. If the seller is hesitant to let a mechanic inspect the car, invite the seller to observe the inspection. If the seller is still hesitant, do not buy the car.
3. Let the mechanic know about the car's history and any issues you found while doing your own inspection. If the seller has the maintenance records, give those to the mechanic as well.
4. Ask the mechanic to rate the car's condition as excellent, good, fair or poor. Having an impartial, expert opinion will be useful when it comes time to negotiate a price.

• Now that you have the car's history report and the mechanic has given it the thumbs up, it's time to figure out how much the car is actually worth.

1. Disregard the Seller's Price: You need to start with your own objective research not the seller's asking price.
2. Consult the Kelley Blue Book: The Kelley Blue Book will tell you what a car's trade-in, private party and suggested retail value is based on its make, model, mileage, years and options. Use these as a starting point for your negotiations.
3. Find the Median Asking Price: Research the same car's asking price on various used car websites including eBay Motors, UsedCars.com, Cars.com and CarsDirect. Find the median price. If this is lower than the seller's asking price, use this paperwork to negotiate a fair price.
4. Consider All the Factors: Take your median asking price and factor in the car's mileage, condition and the seller's eagerness to get rid of the car into consideration as you determine what you're willing to pay for the car.

• Now that you've done your research, you're ready to negotiate a price for the car.

1. Show Your Research: If you think the car's value is less than the seller's asking price, bring proof. Bring all the listings you printed out online to show the seller.
2. Bring a Friend: Your friend's job is to touch all of the car's dings and flaws and suggest you leave when you're not getting what you want.
3. Be Fair: You're trying to get a deal - but a fair one. Be honest with the seller. If your research and calculations just don't support what the seller is asking for, than the car's not worth it. But, don't be a jerk about pressuring someone to sell their car for considerably less than it's worth.

• Once you're ready to hand over your card hard cash and take possession of the car, keep the following in mind:

1. Get It In Writing: You and the seller should complete at itemized bill of sale, which details the transaction amount. A free downloadable bill of sale is available from CarBuyingTips.com.
2. Get the Title: When you pay for a car, you receive its title. This is the document issued by the state that includes the car's VIN number and ownership information. The seller will sign the title over to you. You must possess the title to own the car. Do NOT buy a car or put any money down without it.

• While a used car will never be as reliable as a new car, it can be pretty darn close. A few extra precautions can ensure that you know exactly what you're getting for your money. The best part? You'll have a little money left over to pimp your ride.