Before you start, have a clear idea about your budget. How much can you pay? You will have to pay not only for the car itself. Repairs, taxes, insurance and registration fees all will typically have to be paid for. Estimate all these items and compute the price that you can pay for the car itself (by deducting the other items from your total budget).

Now look at the offers within your range. Newspaper ads and used car price listings maintained by banks and loan institutions can give you an idea of the cars available at your budget.

Start your car checking with a look at the mileage. It is better to buy a car that has run lesser numbers of miles. Running takes a toll on the car, however well maintained it might be. You might get bargains on cars with extremely high mileages. However, what you save here might all be gone on the repair bills you will have to incur. As a general rule, it is better to buy a used car in good shape at a higher price than buy one in bad shape at a low price and hope to fix it up. Check the maintenance records. If none is available, it is quite likely that the maintenance has been neglected.

Now look at the interior and exterior. What impression do you get from the examination about the way the car has been maintained? Do they indicate a careful owner or a sloppy one? Every small thing can tell a tale. Look for the story the condition of the car tells.

Finally, you take a test drive. Drive over a variety of terrains and traffic conditions. Check the following:

• Does the engine make unusual noises?
• Is the acceleration good or does it lack power?
• Does the transmission shift smoothly? Or do you hear grinding noises while shifting gears?
• Does the car brake well?

If you notice problems and the owner says that the engine needs just a little tune-up, be wary. Tuning up the engine is a required procedure during the regular maintenance procedures. If it still needs a tune-up it can only mean that the car has not been maintained properly. The problems you notice can signal a worn out engine.

Also check engine oil, automatic transmission fluid and suspension. Do all these tell a tale of a well maintained car?

Your best option is to get professional mechanic take a look at the car. The few extra dollars you pay can be saved in the repair bills you will pay later.

Provided you proceed in a systematic manner as above, buying a used car is not likely to be all that big an issue.