Buying a car is exciting. It also requires some effort. Buying the right used car requires the most effort of all.

Just like with any big decision, the first questions in buying a car are questions you ask yourself.

• What do you need from your vehicle? Will you be using it to haul dirt? You probably want a truck. Do you have small children? A four-door model makes working with car seats a lot easier. Do you drive a lot? Look for a model that gets good gas mileage. Check the Consumer Reports Web site for a list of used cars that have done well in its reliability studies, as well.
• What can you afford? Use our loan calculator to see how much your monthly payments will be on various loans.
• How will you pay for it? If you’re going to need a used-car loan, choose your lender and apply for your loan before you shop for a car. A credit union may be your best loan source: auto loan rate surveys consistently show that credit unions have lower auto loan rates than banks or thrifts.

Where to Look

There is no one best place to buy a used car. Private sellers may be more willing to negotiate a lower price. Dealers have usually cleaned up the car a little more. Ask around. Often, the best cars are the ones you hear about because people know you’re looking.

Check the local paper’s classified ads. Learn how to read the ads. If the ad says the car is "dependable" or "runs great," you’re probably not going to see anything pretty. That’s OK if you don’t need a pretty car. There’s a lot to be said for dependable. "Needs work," is usually an understatement. And if the best thing the owner can think to say is "new tires," well, "needs work" is starting to look good.

Surf the Web. Sites like autotrader.com and autoweb.com offer online versions of the classified ads.

Visit the used car lots of local dealerships, especially if there’s one make or model you really want. They’ll have the biggest selection of the cars and they also sell new.

What to Look For

Ask questions before you see the car.

Before you even look at the car, ask the owner a few questions, either on the phone or person. Keep in mind that the owner may downplay any problems the car has or, more likely, not be aware of problems. None of these questions are deal makers or deal breakers, but all of them will give you some idea of what to expect and look for.

• Are you the first owner? The first owner will have a better idea of the car’s repair history.
• What's the mileage? Mileage is only one indicator, but it is still a factor.
• Why are you selling the car?
• What kind of condition is it in?
• Has it been in an accident? Depending on the accident, this can be a big hidden problem, even if it looks like the damage has been repaired. Front-end damage should raise a warning flag.
• Has it been having any problems? A series of repairs could indicate that a problem has been guessed at and may still not be fixed. Other problems may be minor by themselves, but indicate bigger troubles on the way.

Inspect the Car

Take a flashlight, a rag, this list, and a pencil. It helps to have a friend along to help you check the lights and exhaust.

Get a first impression.

Does the car appear to be well cared for? Does it look like the owner has taken pride in keeping it maintained?

Look for rust. Beware of newly painted cars. A paint job can be a cover-up for both rust and accident damage.

Are there big dents, mismatched paint areas, or poorly fitting parts? Again, these are all signs of accident damage.

Look inside the car at the seats and pedals. An owner who takes care of the car’s interior is more likely to be an owner who takes care of the car’s other maintenance needs.

Walk around the outside of the car.

Look under the car and around the street or driveway where it is parked. Are there any dark patches on the ground? Look under the car to see if you can see any wet areas or drips. If so, study the fluids. Don’t run away if you do see a minor leak, especially of water. Just make a note of it for discussion with your mechanic.

• Oil and manual transmission fluid are black.
• Automatic transmission fluid and power steering fluid are red.
• Antifreeze is usually green but can be almost any color.
• Gas and water are clear and mostly colorless.

Look for any loose parts hanging from the body.

If the tailpipe is cool, wipe the inner surface of the tailpipe with a rag. White or gray dust is normal. Thick, greasy soot means the car burns a lot of oil.

Look at the tires. Do they have good tread or will they need replacing? A tread that's uneven to one side is a sign of poor alignment or balance.

Look at the spare. Make sure there’s a decent spare and that all the necessary tire changing tools are in the trunk. More than one recent car buyer has gotten a nasty surprise on this one.

Walk around to each corner of the car and push on the fender to bounce the car up and down several times. When you release it, you should feel the car bounce back twice. If it bounces more, you might be looking at replacing the shock absorbers or even the struts.

Test all the lights: brake lights, headlights, reverse lights, and turn signals.

Test the horn.

Open and shut all the doors, the hood, and the trunk. Do they all work smoothly? Do they lock and unlock easily?

Sit in the car.

What kind of shape are the seats, door panels, headliner, rugs, and mats in?

Do the seat belts work, both front and rear?

If the car has power locks, power windows, and power seats, do they all work?

Do the windshield wipers work? Does the wiper fluid squirt?

Check the dash lights and interior lights.

Test the radio.

Open the hood.

Look around:

• Mismatched bolts or offset paint may mean a front-end accident.

• A sprayed black film on the underside of the hood usually means oil leaks or oil pressure problems.

Examine the engine belts for wear. Old ones show white, frayed strands on their edges. Look for cracks, as well.

Look for leaks.

Check all fluid levels and their colors.

• Oil should be light brown. It’s okay if it’s dark, but it shouldn’t be thick and goopy. If there’s old oil buildup or sludge inside the valve cover where the oil filler cap is, the owner has probably been neglecting oil changes.

• Power steering fluid should be clear.

The hoses should be firm - not too soft and not too hard.

Is the battery relatively new? Do the connections look clean?

Take a deep breath. Is there a strong odor of any kind? Fuel? Oil? Antifreeze? A burnt smell?

Start the car

Turn the key to the on position. The oil pressure, brake pressure and alternator (battery) lights on the dashboard should light up. If the car has gauges for these systems, they may not light up. Start the car. The lights should all go off.

Does it start right away? Depress the accelerator pedal and hold it for a few seconds. 

Let off the accelerator pedal. Does the engine stay at that high level for a moment or two, then settle back down to an idle once you've released the pedal? Or does it stay at the high, loud level?

Listen for loud chatter. Consistent ticking at idle is normal and some knocking or pinging might mean the car needs only a tune-up or higher octane gas. Loud chatter or other strange noises may be signs of major problems.

Watch the tailpipe while depressing the accelerator, looking for the color of the exhaust. (This is where a friend comes in handy.)

• White is OK when the engine is cold.
• Heavy, white smoke when the engine is warm indicates a blown head gasket or cracked head.
• Black means the engine is running too rich. This requires only a minor adjustment.
• Blue means the car is burning oil and probably needs engine work.

Check the transmission fluid while the car is running. It should be red. Sniff the dipstick. Transmission fluid that smells burnt is a sign of transmission trouble. Thick, greasy fluid here is also a sign of trouble.

Drive the car.

Put on the seatbelt. Drive extra carefully in any unfamiliar car.

Check for play in the steering wheel. It should turn a little bit before it turns the car wheels, but not too much.

Check the brakes. The pedal should feel firm, not spongy, and not go too close to the floor. Press the brake pedal firmly and hold it for 45 seconds. The brakes should hold firm. If they don’t there may be a leak, and you probably shouldn’t drive the car.

If the car has a manual transmission, see how far the clutch comes back up before the car moves. If it comes all the way back up first, you’re probably looking at an expensive clutch replacement. Is it difficult to get the car in gear when shifting up or down? If you hear a grinding sound, there may be transmission or clutch problems. Does the transmission pop out or jump out of gear?

If the car has an automatic transmission: Is the transition between gears smooth? It shouldn’t jerk, slip, or hesitate on the up-shift. It should not bang on the downshift.

Put the car in reverse. Accelerate and stop a few times. If you hear a clunking sound, it may have a bad differential.

Test the brakes at 15 mph. They shouldn’t pull to one side, make a screeching sound, shudder, or stick. Pulling may only mean an easy adjustment. Screeching and fading could mean the brake shoes are worn. A shuddering movement may indicate an uneven brake rotor, which is an expensive repair. If the brakes don’t do any of these things at 15 mph, test them again at 30 mph.

Let go of the wheel to see if the car pulls to one side or the other. This could mean it needs an alignment. Steering wheel vibration might mean the same thing.

Find some rough pavement, go over a few bumps, and listen for rattles, squeaks, and loose suspension.

If the car is front wheel drive, find an empty parking lot; turn sharply to the right and left and listen for knocking sounds. Knocking is a sign of bad CV joints.

Try the air conditioner and the heater to make sure they work.

Take the car up to highway speed. Listen to the engine. It should run smoothly and quietly. Listen for pings, rattles, knocks, grinds, vibration, squeals, or hesitation.

Consult your mechanic.

Don’t be pressured into buying a car on the spot. It’s better to lose a good car than buy a bad one. If you’re interested in the car, take it to your mechanic with the notes you’ve made during your inspection.

Ask your mechanic to list any repairs the car needs and how much it will cost to make the repairs.

Negotiate.

Once you have your mechanic’s okay, it’s time to bargain. Some owners are firm on their price. That’s fine, if the price is fair.

If the owner says the price is negotiable, or if the ad says, "Or best offer," make an offer of 20% less than the asking price. Use your mechanic’s list of necessary repairs to argue for a lower price.

If the price is listed as firm and the car needs repairs, use the repair list to ask for a reduction, as well.