• Start at Your Credit Union
  
• Before you Buy
  
• When You're Shopping
  
• When You're Test Driving
  
• Having the Car Inspected
  
• Once You've Purchased

Purchasing a used car sometimes requires more time and energy than buying a new one; however, pre-purchase diligence can save both money and headaches. To make sure the second hand car you drive home isn't a lemon, consider the following hints when you go car shopping.

Start at Your Credit Union

If you plan on financing your used car purchase, it's a good idea to contact your credit union for pre approval of your loan before you get started. Typically, pre-approvals are valid for 60 to 90 days. Be sure to ask about the term and monthly payments for your pre-approved loan amount. If the payment is higher than you like, find out what loan amount translates into a comfortable monthly payment for you. A realistic idea of how much you can afford will help you choose what cars to consider.

When you get pre-approved for your loan, get to know your credit union loan officer. He or she can be a very valuable information resource. Your loan officer can tell you the average selling price for a particular make, model and year of a car using the "Blue Book," a resource widely used by insurance companies and car dealers for assigning values to used cars. Knowing the generally accepted value of a car can greatly improve your negotiating position. Your loan officer can also tell you how much certain features, such as automatic transmission, air conditioning, or a stereo, will add to the price of the car, and perhaps more importantly, how much of a discount to expect for things like minor body damage and high mileage.

Before you Buy

Laws governing the purchase of a used car vary from state to state. Find out if your state offers any protection to buyers of used cars, such as a "cooling off period" (a period of time after the purchase when you can return the car for a full refund). Also find out what kind of inspections you will need to register the car, such a mechanical inspection or an emissions test, and who is responsible for making sure the vehicle passes. In most states, the seller of the car is responsible for making sure the vehicle passes necessary inspections before the transfer of ownership. This means that the seller must either provide you with a valid inspection certificate or pay to have the car inspected and repaired, if necessary.

When You're Shopping

If possible, bring a friend - one who knows something about auto mechanics if you don't. He or she can play devil's advocate by going out of the way to look for problems with the car, as well as providing a buffer against sales pressure from the seller. As disinterested third party can also be a good negotiator. The strategy can keep you from buying a car you aren't certain about, or paying too much for the car you like.

You are about to make a major purchase, so don't hesitate to ask as many questions as necessary to make the decision. Find out if the car has been in any accidents and how badly it was damaged. Ask if any original equipment has been repaired or replaced, and factor this into the price you are willing to pay. For example, a stick shift car with more than 60,000 miles on the original clutch will need a new clutch (a $600-$1000 repair) sometime soon. Request receipts that demonstrate proper maintenance. Ask to see the certificate of title. If the title names a lienholder, this means that someone else may have a lien against the vehicle. The seller should have a lien release; a document, which states that he or she owns the vehicle outright, and is, authorized to sell it. Make sure the vehicle identification number on the car matches the one on the title.

Check the following features on the car:

1. Odometer: Is the mileage appropriate for the car's age and condition? Was the car used for commuting on the highway or driving in stop-and-go traffic? Highway driving taxes the car less than city driving.


2. Check all of the accessories: Windshield wipers, heater/air conditioning, head lights, running lamps, backup lights, interior lights, turn signals, radio, cassette deck or CD player, speakers, windows, rear window defogger, and all power accessories (sun roof, windows, door locks, etc.)


3. Chassis: Look for signs of an accident by searching for rust, dents, paint discoloration, and problems with the molding and bumpers, wheel wells, windows and doors. Are the bumpers on straight and tight? Be sure to look underneath the car as well-repaired damage is sometimes more noticeable on the undercarriage.


4. Engine compartment: Does it appear clean and well-maintained? Check belts, hoses, and battery posts for corrosion.


5. Oil , coolant and transmission fluid: Are they full and clean? Look for oil leaks around the engine block and timing belt. Do you smell coolant or burnt oil?


6. Carburetor: Is the air filter reasonably clean?


7. Tires: Are they in decent condition? Is the tread evenly worn on all four tires? Uneven tread wear can indicate suspension or alignment problems.


8. Interior: Look for stains, wear, and rips in the upholstery and interior molding. Is anything coming apart?

When You're Test Driving

When you start the car it should respond effortlessly. Check the exhaust, which should be invisible. Both black and blue smoke indicate problems; however, white steam on a cool, humid day is normal.

With a 20-to 30-minute test drive, ensure the car operates well at all speeds, including highway driving. Listen for unusual noises, especially when you hit bumps, a situation that also will allow you to test the car's steering suspension. Avoid cars that whine, rattle, squeak, vibrate, groan, smoke, etc.

Having the Car Inspected

Even if a car has passed a state inspection, you should never buy a used car without having it thoroughly inspected by a mechanic that you trust. According to the American Automobile Association (AAA), an effective used-car inspection costs anywhere from $40 to $120, depending on the amount of the investigation required. You should consider this cost when negotiating the price of the car, however, if you have the car inspected and choose not to buy it, you should be prepared to bear this cost yourself. The seller is not likely to offer to pay for an inspection for everyone who looks at the car, particularly if they decide not to buy.

In some areas, AAA and CAA (California Automobile Association) offer their comprehensive used car inspections at a reasonable cost. If you are not a member, or your chapter does not offer this service, make sure that the technician you choose to examine the car is certified by the National Institute for Automotive Service Excellence (ASE). Ask for the following tests:

1. Electronic diagnostic routine. This checks the car's computer memory for recent problems and the engine's electric controls.


2. Four-gas analyzer emission check. This ensures the car meets federal and other emissions requirements.


3. CV boot inspection. Verifies that constant velocity (CV) boots are damage-free and not oozing grease.


4. Air conditioning inspection. Checks for operational problems and leaks.


5. Four-wheel inspection. Examines condition of brakes and tires for proper tread wear. All wheels, not just one, must be checked.

Once You've Purchased

If you are buying the used car from a dealer, obtain a copy of the buyer's guide that appeared in the window. This is part of the sales agreement and overrides the sales contract in disputes over warranty coverage and other problems.