Buying cars can be tricky business. And not just new cars, used cars as well. With the economy being as it is, depreciation values of new cars being what they are, and more budget conscious consumers, used car buying is becoming a vastly attractive venture.

Ask almost anyone in the auto business and they'll tell you that the used car business is where the money is. Buying used is a great way to buy a car but like most things it has it's ups and downs and any buyer pursuing this route should proceed with caution.

Unlike buying a new car with zero mileage, first owner privileges, and a freshly painted exterior, used cars are reflective of their previous owners and usage. The used car you seek to buy is only as good as it's last and previous owner. Therein, lies the cautionary warning. When buying used, the first thing you must consider is the car's history. The extent to which you are able to get accurate and valid information has a lot to do with where you shop for your used vehicles. When buying used you have several options:

1. Dealerships
2. Auctions
3. Private Party

Buying used from a dealership may provide some comfort. Often dealerships will back up their used cars by certifying them with the title “Pre-Owned Certified”. These are cars that the dealership has acquired from various sources that have been inspected by the dealership. Pre-Owned Certified vehicles usually come with a warranty that will cover various problems that might occur. While this option is reassuring, you will often pay more at the dealership for a used car and might miss out on the additional savings from other sources.

Auctions are fun and interesting and are often open to the public on scheduled days. Other times are exclusive to dealerships. That's right. Dealerships obtain many of their used cars from auctions, often getting the first look and thus the best pick of the litter. Not to be dismayed though, there are still good finds on the auction lot if you take the time to look at the inventory and have some knowledge of vehicle maintenance.

Often the best historian of a vehicle is the previous owner, especially if you're fortunate enough to buy a car that has had only one owner. You've heard the stories of the wonderfully kept vehicles, driven by the little older ladies that only drive 1,000 miles a year. Although a vehicle of this sort is much harder to find, what you will often find is an owner that has a tried and true understanding of his or her car. If you're fortunate enough to be dealing with someone that's organized, the likelihood of maintenance records is even more feasible. When buying from an individual you're likely to get a much better deal than from a dealership. Presumably, they're selling their own car to get a better deal and more money and you're buying from them to save money and to get a good deal. If you can find an honest and forthright seller, with a car in decent condition, each party wins overall.

Here are a few characteristics of someone that might benefit from buying used:

•  Looking to save money on the overall cost of the car

•  Interested in no car note or small, shorter-term payments

•  Want options outside of a dealership for purchasing a car

•  Not interested in dealing with corporate financing

•  Have a limited budget in which to purchase their car

•  New or inexperienced driver

Some things to keep in mind when buying used:

•  Used cars, like new cars must be maintained so consider the gas, insurance and upkeep

•  Used cars are often purchased “as is” without warranties

•  You'll probably spend more on maintenance so having a good mechanic is essential

•  Make sure you have the car checked out prior to purchasing. Always take a test drive and always have a mechanic or someone knowledgeable look at the car.

• Pay attention to the mileage on the car.

QUICK SUMMARY

	NEW	USED
Where to buy	Dealership or through an auto broker	Dealerships, Auctions, Private Party
Financing	Based on credit scores, will need to use finance companies, banks and/or credit unions unless paying cash	cash purchases are common, but financing is available
Cost	Varies, but approximately $9,000 & up	Varies, but approximately $2,500 & up
Considerations	Manufacturer rebates and incentive, cost of maintenance, depreciation, and how long you plan to keep the car	Cost of maintenance, vehicle history, previous owners, current mileage