Buy Cheap Used Car

Second hand cars are sold "as-is" which means there are no guarantees, no warranties, and no right to return the car after the sale, even if you find out the seller lied to you about the car's condition. There is no 3-day return right, as is commonly thought, and Lemon Laws don't apply to used cars.

Do not rely on a seller's assurance that his car is in good condition. It might not be. A seller might not be aware of hidden problems or he might "forget" to mention them.

A pre-purchase inspection is very important when buying a used car. A professional inspection might cost $75-$150 but can prevent costly mistakes.

While you wouldn't need to check a relatively new car's engine compression or timing belt, for example, these should be on the "must check" list for an older car. Otherwise, you could be replacing the engine in a short time — at great expense.

Other important items on your inspection checklist should be tires, bearings, brakes, seals, hoses, belts, timing chain, transmission, differential, shocks, radiator, alternator, and fuel injectors (or carburetor). Has the car ever been wrecked and repaired? Are the air bags intact? Has the car been properly maintained and serviced?

Check for oil leaks, oil sludge, rust under the wheel wells, uneven tire wear, windshield chips or cracks, missing parts, signs of having been repainted, and dent repairs. Will the car pass emission and safety inspection required in your state and county?