How to buy a used car

We all know by now that buying a new car is the second most expensive purchase most of us will make. Year after year auto makers churn out better looking cars with the latest and greatest gadgets. It gets very tempting to buy a new car especially during the fall when dealers reduce their prices to make room for next year's inventory. We have a love/hate relationship when it comes to cars.

The bad news is that new cars keep getting more expensive to buy with each passing year. The good news is that we don't have to buy new. It's a buyers market for those looking to buy used cars. You can get great deals from dealers since they are always eager to free up their inventory. You can get even better deals if you buy directly from an owner.

So what kind of cars can you purchase that are cheap? There are many cars out there that can be bought for relatively little money. On top of my list is the Nissan Maxima. A fully loaded 1998 Maxima with Bose stereo and leather can be bought for a few grand. I used to own a fully loaded 1998 Maxima and I can tell you they are great cars for anyone. The car has plenty of room for passengers and yet is a very fun car to drive. The Bose stereo and speakers are top notch and provides plenty of kick. Even after a quarter million miles on the engine the car was in great shape. I sold it for $1800 and I'm sure the new owner is still happy with the car.

My second favorite car in the $3000 range is the mid-90s Honda Civic two door with manual transmission. You really can't go wrong with Honda. It delivers impressive fuel economy and is a blast to drive. Although there are many Hondas for sale in the used car market, it's hard to find one that is completely stock. Most older Civics are modified one way or another. I would recommend buying a completely stock car.

Don't be afraid of cars with high mileage. I know most people think the lower the mileage the better, but I've seen cars with less than 50K miles needing a new transmission. It all depends on how the owner maintained the vehicle.

I recommend buying from eBay only if the seller is near you. It's hard to believe many people are willing to pay thousands of dollars for a car they haven't looked at in person. Local newspaper ads are also a good way to find cheap cars. I would avoid car auctions. Most cars can't be test driven in an auction so it's really risky.

Once you've located a car it's time to do some history digging. Get a CarFax report and make sure the car doesn't have any history of accidents or water damage. This will save you a lot of headaches down the road. No matter how nice and clean a car may look, one will truly never know about the history of a car unless you get a CarFax report.

If the CarFax report doesn't come back with any history of accidents or water flooding it's time to contact the seller and arrange for a test drive. Meet early in the morning when the weather is cool. Make sure you tell the owner not to start the car before you arrive. A car with problems will be harder to start when the engine is cold.

When you arrive at the seller's location do not start the engine just yet. Pop the hood and check the engine and transmission oil. The engine oil should have a translucent brown color while the transmission oil should be a translucent pink color. If the engine oil is black then this should raise a red flag. If the owner doesn't change basic things like the engine oil you have to wonder what else is being neglected. If the transmission oil is black then just walk away from the car. The car could possibly have a lot of problems down the road.

Take the car for a test drive. Check for any shaking or vibrations in the car and listen for any unusual sounds coming from the engine or wheel wells. The brakes should not make any metallic or squealing noises. Check all interior and exterior lights and make sure they are all functional. With the car running, check for any smoke coming out of the exhaust system. Black smoke indicates the car is running rich and a simple tune-up is all that it may need. White smoke is water condensation and it's nothing to be concerned about. Blue smoke is what you have to watch out for. Blue smoke means that engine oil is being burned along with gas indicating a leak in the engine seals. This could be very costly to repair. Remember, if you see blue smoke coming out of the exhaust pipe then walk away from the car. There are plenty of other cars out there.

If everything checks out fine, take the car to a trusted mechanic and get a thorough inspection. A complete inspection usually costs around $125 but it truly is money well spent. A mechanic will be able to put the car on a lift and inspect the cv boots, axles and muffler for leaks or rust. If the mechanic does find something that needs fixing you should be able to negotiate even further with the seller.

Remember, it's a buyers market out there. Be patient and use common sense and the right car will no doubt come into your path.

For more information on buying used cars please go to Cheap Cars.