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Introduction
1. Should You Buy New or Used?
2. Find Out How Much You Can Afford
3. Finding your Car
4. Communicate with the Seller
5. Conduct a Through Walk-Around
6. Take It For A Test Drive
7. Need to bother with the paperwork?
8. Negotiating for a used car
9. Transferring Ownership
10. Closing the Deal
11. Inspection CheckList
12. Test Drive
 
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  10 Steps to Buy a Used Car  
Step 2: Find Out How Much You Can Afford
  It's easy to overspend your budget on a car. Here's how to avoid getting in over your head.  
Decide what you want to spend
It's always a good idea to start the car-buying process with a preliminary budget planning session to help you determine how much car or truck your money can buy—and how much money you feel comfortable about spending—on what is typically the largest consumer purchase after a house. Make sure you’ve accounted for insurance and other running costs. If buying on finance, work out your monthly outgoings and factor in the car’s running costs into the payments you’ll be making.
Research the Right Car
 

At the beginning of the car-buying process, many people already have in mind the car they want. But it's a good idea to stop right now and ask yourself: Figuring out the how much you want to spend was the easy part; now you have to find the vehicle that's right for you. The problem is you're not really sure what's out there or even what you want. Here is what we suggest.

Be flexible. If you're set on one model, in a specific color, with a certain mileage or specification you may find it hard to get a bargain as you're focusing on a narrow market. If you're prepared to consider something similar to what you want, you'll find a much wider choice available and it becomes easier to negotiate.

It's possible that you need to expand your horizons when considering what to buy. You might want to think of other vehicles in the same class. For example, if you are considering a Maruti Zen you should also look at the Santro, Indica or Corsa. These cars were built for the same market, but they often have different features at lower prices. Be certain the car you desire can accommodate your daily needs.

First, make a list of all the things you need your vehicle to do (haul kids, go off road, get good mileage) and then make a second list of all the things you admire in a vehicle (body style, colors, luxury options). You should end up with a list of qualities from which to eliminate models that won't work for you.

 
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