How will the car be used? If you are going to use the car on a farm, a truck or vehicle with four-wheel drive may be better than a sports car. If you are going to use the car to transport a large family, a large vehicle would be important. If you're planning to use the car for commuting, gas mileage and comfort may be your biggest considerations. So, knowing the main uses is key to finding the right car.

What features do you have to have in a car? If there are features you simply must have such as power steering, air conditioning, or power locks, it is important that you make note of these so that you do not settle for less than you want, and so that you do not waste time looking at cars that do not fit your needs.

How much can you afford to spend? Think about how much you're willing to spend, how much of a down payment you can make, and how much you can afford per month, long before you start the process of buying a used car. There is no reason to even look at used cars that do not fit your budget. So, know what the upfront costs are, what the monthly payment will be, what the cost to maintain the car will be, as well as how much it will cost to operate it. Driving an SUV for example will be more expensive from week to week than a small car. The reason is they do not get as good of gas mileage.

Step two: Evaluate the cars.

Once you do the first step you will have a narrowed down list of cars you can choose from that will fit your needs. For example, you will know that certain makes and models are sure to be out of your price range, and that other model do not fit your needs for seat numbers, etc. So, make a list of makes and models that will fit your needs and then analyze the pros and cons of each. Use websites, dealership information, consumer reports, and look at things like the reliability, repair ratings, gas mileage, and other advice. You can look at pricing guides to in order to make sure you know what you should be paying.

Once you have done this it is time to look at actual cars. You will want to find individual used vehicles that meet your criteria, then take the time to gather as much information as you can on the car itself. Know what the retail value is, and then look at the history of the specific car. You can use CARFAX.com to check out the history of the used car you are considering. You will want to know a lot of things such as if it has been in any sort of accidents, ever failed safety or emissions, how many previous owner's it has had, whether anyone has tried to commit odometer fraud on it, and more. Take all of these things into consideration.

There are a lot of places to find actual used cars. You can purchase your new previously owned car from an independent used car lot, a new-car dealership, an auction, a used car superstore or a private seller. Whether you decide to go with an individual you found in the classifieds, or a dealership that has been around for ages, you need to always remember to do the following:

Once you have narrowed the choice down further you will want to be thorough enough to take your choices into a reliable mechanic that you have hired, not one hired by the seller. Have them check out the car, and see if there is anything that you should be concerned about. They can check out all major systems, and more. You will want to be sure they look for indications of past accidents, and that they do not short cut the check, as missing something can be costly to you.

You will want to make sure you take the car for a test drive and make sure everything works, including both the air conditioning and the heater. Other things you want to do while on your test drive include:

Take a close look at the car. Make sure the body parts line up, the paint matches, doors open and close easily, and the tires show even wear. Lift the hood, even if you intend to take the car to a mechanic it can't hurt to look for leaky hoses, worn belts, and dirty oil. Automatic transmission fluid should be clear and reddish, and not smell burned. Radiator water should have a light yellow or green color. Take time to see that all warning lights work, and that none stay lit on the dash. Make sure that the airbags have indicator lights, and that they are not lit after you start driving the car.

While driving the car you want to make sure that your body and build work comfortably with the car and that the head restraints, roof structures, and windshield designs do not interfere with your ability to see clearly. If possible, drive during early evening to make sure the headlamps provide sufficient light for safe driving.

Drive the car at least 35-40 MPH. Make sure shifting is smooth and steering is straight, especially when you brake. Take your speed up higher and make sure that the steering wheel does not shimmy.

Step three: Be prepared with financing.

Always know the market value of any car you're considering. You can use the following sites to help you find the car values.

• Edmunds.com, Inc. - http://www.edmunds.com


• Federal Consumer Information Center - http://www.pueblo.gsa.gov


• Kelly Blue Book - http://www.kbb.com


• National Automobile Dealers Association (NADA) Guides Online - http://www.nadaguides.com

Knowing the value of a car can really help you to not be taken advantage of when you are trying to find a good used car.

Also, part of finding a good used car is not paying more than you have to for it, including in interest. So, before you ever set foot on a car lot, or open a newspaper, or venture online to check out cars, get yourself a loan approval, and know what your interest rates will be. This way you have a good foot to stand on, and if you do end up buying a car through a dealership, and choose to have them finance it, you can be sure to get a good rate, and not be taken advantage of. This is especially important if you have good credit.

In addition to financing you want to make sure that you are in control of the price of the car. Basically you want to make your first offer low. You can always negotiate up, but it is hard and probably impossible to negotiate down.

Step four: Double check everything that is said.

Check the sources of information you are getting. This is important whether you are buying through the classifieds or at a dealership. If buying through the classifieds always check to make sure that the name on the title matches the name on the seller's driver's license. No matter what they say, even if they say it is their dad, brother, uncle, sister, or cousin's car, only purchase a car from the person on title.

Odometer fraud is real, so just because a car has low mileage does not mean it is in great shape, so be sure to check the history, and be sure that you use your gut feelings, senses, and common sense.

No matter what someone says you want to read contracts carefully. Often times dealerships will insert "AS IS" clauses in stacks of paperwork. This is not acceptable. Or they may try to disguise or justify "Damage Disclosure, Salvage & Rebuilt Titles." These titles are issued by states when the vehicle has sustained damage as a result of one or more incidents. Basically if a car has been issued one of these titles it generally means that it is not road worthy, and cannot be titled in that state again. So, watch for these, ask specifically if the title is clear, and if it is a typical title, or one of these. You will also want to make sure that the car does not have a Flood Damage Title. States issue flood titles when a vehicle has been in a flood or has received extensive water damage. It might be rebuilt, but it needs to be retitled to be a good used car. So check all of this.