Pre-owned cars can be great bargains. Cars that have been manufactured within the last five years offer newer technology, recently upgraded features, contemporary styling, good gas mileage and safety equipment at a vastly reduced cost when compared to buying a new car.  However, before you start shopping for a used car, you need to do some homework. Spending time now may save you serious money and headaches later. 

To begin your search, check out the repair record, maintenance costs, safety, and mileage ratings for the models that you are considering in consumer publications. Look up the "blue book" value to assist you in negotiating the price.  Use the information provided as a guide to understanding the process and narrowing your choices.   

If you are buying from a dealer, look for the Buyers Guide.   The Federal Trade Commission's (FTC) Used Car Rule requires dealers to post a Buyers Guide in every used vehicle they offer for sale.  The Buyers Guide must tell you:

• whether the vehicle is being sold "as is" or with a warranty;
• what percentage of the repair costs a dealer will pay under the warranty;
• that spoken promises are difficult to enforce;
• to get all promises in writing;
• to keep the Buyers Guide for reference after the sale;
• the major mechanical and electrical systems on the car, including some of the major problems you should look out for; and
• to ask to have the car inspected by an independent mechanic before you buy.

Individuals selling cars as a private party don't face many, if any, regulations. The vast majority of cars sold by individuals will be sold "as is" and the buyer will have little or no financial recourse should the car require repairs. If you buy a used car from a dealer, the vehicle may come with some type of warranty.  Some of the most common types of warranties and service programs include:

"As is" means that the dealer cannot be held accountable for any necessary repairs after the sale. You will be responsible for the cost of repairing anything that goes wrong after the sale. Some dealers may offer additional verbal warranties; those promises are not legally binding.  If a verbal warranty is offered, make sure it is written into the Buyers Guide.  The Guide must reflect any negotiated changes in warranty coverage. It also becomes part of your sales contract and overrides any contrary provisions. For example, if the Buyers Guide says the car comes with a warranty and the contract says the car is sold "as is," the dealer must give you the warranty described in the Guide.  

Warranty of Merchantability states only that the dealer guarantees that the vehicle will do as it is expected? In other words, run. It does not cover anything that could go wrong with the car.

Limited and Unlimited Warranties: Neither limited nor unlimited warranties necessarily cover the entire vehicle and all parts of the vehicle. The only warranty coverage that can be enforced is what is written on the car's Buyers Guide and included in the contracts.

An unlimited warranty means that any owner of the vehicle can call upon the coverage of the warranty within a certain time period and that the full price of repair is covered by the warranty.

Limited warranties may restrict the percentage of repair paid for by the dealer, limit the type or systems eligible for coverage, restrict coverage by either time or mileage, and in some cases, whether the car owner is required to pay a deductible.

Unexpired Manufacturer's Warranties are mostly available on later model cars where the original warranty is still in effect. Verify the coverage and extent of the existing warranty by calling the car manufacturer.

Extended Warranties technically don't exist because by definition, warranties are included in the selling price of a vehicle. The confusion comes when a dealer uses that phrase to describe service contracts. Like warranties, these contracts (car repair insurance) pay for repairs on the covered mechanical systems, but the level of service varies greatly depending on the terms of the contract and the honesty of the service provider. Service contracts cost extra and are sold separately. Be sure to do a lot of research on both the company offering the service contract and the terms of coverage before you decide to buy.

Certified Vehicles are a relatively new phenomenon in the car-selling arena. Dealers offer these cars with the assurance that the car is mechanically sound because the dealer's mechanics have verified that major systems are in good shape. Cars sold as certified are covered for the expense of repairs much like an original warranty does on a new car.

Test-drive the car on highways and in stop-and-go traffic.  Whether you shop for a used car through a dealer or a private party, you should get behind the wheel and take the car for a drive.  Take time to test-drive the vehicle in conditions similar to those in which you will regularly drive it.  By doing so, you will minimize the likelihood of undetected problems.   

Have the car inspected by a mechanic you hire.  It's best to have any used car inspected by an independent mechanic before you buy it. For a relatively nominal fee, you should be able to get a general indication of the mechanical condition of the vehicle. An inspection is a good idea even if the car has been "certified" and inspected by the dealer and is being sold with a warranty or service contract.

There are no standard operating procedures for pre-purchase inspections. Ask what the inspection includes, how long it takes, and how much it costs. Get this information in writing.

If the dealer won't let you take the car off the lot, perhaps because of insurance restrictions, ask the dealer to have the car inspected at a facility that you designate. You will have to pay the inspection fee.

Once the vehicle has been inspected, ask the mechanic for a written report with a cost estimate for all necessary repairs. Be sure the report includes the vehicle's make, model, and VIN. Make sure you understand every item. If you decide to make a purchase offer to the dealer after considering the inspection's results, you can use the estimated repair costs to negotiate the price of the vehicle. 

Check out the dealer with local consumer protection officials.  The Miami-Dade County Consumer Services Department (CSD) investigates complaints filed against businesses located in Miami-Dade County.  You can check a businesses complaint history by contacting the CSD via telephone at (305) 375-3677 or e-mail at consumer@miamidade.gov.

Shopping for a used car can take quite a bit of time and energy, but if you are committed to the process and follow the above stated guidelines, there is a reasonably good chance that you will make a deal with which you can be comfortable and satisfied.