(This is the 6^th post of the 8-part series An investing-friendly car buying guide.)

You have short listed 4-5 used cars in your neighborhood that you are ready to check out and test drive. Give yourself a weekend to complete this process (unlike most of our work places, car dealers are not only open on weekends, these are some of their busiest days).

Visit the dealership (or the private seller), and inspect the car inch-by-inch, both outside and inside, for any visible dent, scratch, or damage. Take a friend along with you - four eyes will miss less than two. Samarins gives a detailed checklist of the items you should look for in the car. Tell the salesman if you see anything that bothers you. Such cosmetic problems will help later in negotiating the price down.

Important: (Skip this paragraph if you are buying from a private seller.) Check the buyer’s warranty form (you need Acrobat Reader installed on your computer to see it) that should be pasted on the car window (dealers are required by law to display it). If the “As Is” box is checked, tell the salesman that you are interested only if he gives you at least 2-3 months of dealer warranty (under “As Is” deal, the dealer takes no responsibility for any trouble with the car the moment you pay him - you do not want that kind of deal for a used car). If he does not listen, leave.

It is now time to go for a test drive (”the feel of the wheel will seal the deal”). Settle into the driver’s seat and shut out all distractions so you can listen in to every possible noise: turn down the A/C, switch off the music, and politely ask the chatty salesman to pipe down. Use a route that includes a significant stretch of highway so you can test both accelerator and brake. Make hard turns to test the steering wheel. Try all possible maneuvers short of giving the salesman a heart attack (you may use this checklist).

By the time you reach the end of your list, you should know the one car you want. Ask the seller if you can take it to your own mechanic for a “pre-purchase inspection”. If he objects, leave. You do not want a used car without getting the approval of your trusted mechanic. They have an exhaustive list of items to check for in the car, and will charge between $50-$100 that is well worth paying. You should get a report of possible problems, which you can use to bargain the price further down. If you do not know any mechanic, look for an AAA-approved one in your area.

It is time to Seal the deal »

See related posts:

1. Making a list
2. Wrapping it up
3. Researching your car
4. A note on extended warranty