Here I have given 10 steps to guide you in buying a car. In these steps I have discussed that how to locate, price and negotiate to buy the used car that best suits you.
Step # 1: Why to buy used cars?
By deciding to buy a used car you have taken a good decision as there is not much difference between a used car and brand new car. You can also find a car that is 1 year old but its price is 20-30% cheaper than the new one. There are several other reasons why you should buy a used car.
You save money on insurance, can get big bargains, used cars are more reliable, are able to find a car that still has factory warranty, you can trace the car history by vehicle identification number (VIN), the negotiation process is less stressful if you buy from a private part.
Step#2: How to decide which car to buy?
Mostly when people shop around to buy a car they know what they want. But you have to think again that the car that you are going top buy is affordable for you and can you adjust that car in your budget. You should shop around and choose the car that best suits your needs and also won’t become a burden on your budget.
Step#3: Don’t choose the car on the basis of its popularity
The factors that contribute in making used car’s worth are its condition, mileage, reliability, performance and popularity. If you choose a car on the basis of its popularity then you might have to pay high prices. There are several cars that are not as much popular but they have same condition, mileage, reliability, performance as the popular cars have. So you should decide a car not on the basis of popularity. But rather that, you should compare the rates and performance of popular cars with the other cars that are not that much popular.
Step#4: Do some research on the used car that you choose to buy
You should do a little research for the used cars that you are willing to buy. Internet is a good source to find the prices, standard features, specs and safety, warranties, consumer discussions, photos and video and resale values of cars.
You also have to inspect the working condition of car. If you buy a certified used car, then the process is simple as those cars are backed by a manufacturer’s warranty and are already passed thorough inspection. A car which is 1-3 years old with less than 36,000 miles on the odometer is still under factory warranty.
Step#5: Analyze that how much you are able to afford
Before buying a car a smart shopper will always keep its budget in front. He or she will then decide that which car they should buy that best adjust in their budget.
If in case you have to get a loan to buy a new car, then you have to decide that what monthly payment you can afford and also you need to see that how much you can put as a down payment to lower your monthly payment. After deciding the above mentioned thing you will now be able to determine the price of the car that you can afford to buy. So while buying a car keep this figure in your mind and choose the car that comes in your price range.
Step#6: Arrange Finance for your used car
You can pay for your car by either cash, taking loans from bank, online lender or credit union or you can also get financing through the car dealership. Cash is though the best option but this is for those who have that much money. Financing through dealership are also good in some cases. But this depends on the credit score and interest charged by the car dealerships. 
Step#7: Where to go to buy used car?
You can get a used car from private parties, used car section of new dealership or independent used cars lot. With the private parties you can get the most reasonable prices. You feel more relaxed to negotiate with a private party then to talk with a salesman at a car dealership. Also it is a fact that we cannot deny that there are several advantages of buying used cars from the old car section of new dealerships. You can get some great deals from there. Moreover there are several car dealerships that offer certified used cars already thoroughly inspected and they are also backed by strong warranties.
Step#8: Test Drive the car that you choose to Buy
Now after choosing a car you should take it for test drive. With test drive you can check the car condition and performance thoroughly. Try to test a car when its engine is completely cold because few cars starts with a difficulty if their engine is cold and so when you test a car with cold engine it will reveal chronic problems if it has any problem.Before starting test drive turn off the radio and listen the sound of engine and put all your attention towards the driving experience.
Step#9: Negotiating the price of used car
If you have good information about a car then only you can have successful negotiations. Salesmen at car dealership are very keen in negotiating a car. There are few tips to have successful negotiations.
• You should negotiate on a car with the salesmen you can easily talk.
• You should start with the lower but reasonable price offer.
• Decide your price ahead of negotiation and should leave the negotiation when your point is reached.
• Walk out from the dealership; this is your strongest tool of making your negotiation successful.
• Be patient while negotiating with the salesmen.
• Remember that a closer salesman will try to make a good deal before you reach the final price.
After having a deal you have to make sure that the transaction is completed properly.
Step#10: Close the deal
While buying a car from a dealership you have to complete the finance and insurance (F&I) process. If you are buying a car from private party you just have to make payment and check that the title and registration are properly transferred to your name. In any of the two cases you have to make sure that you have the insurance for the car you just bought before that you take it away.
Once that the contract is prepared you have to read each clause very carefully and as that contract also contain the the cost of the vehicle, a documentation fee, a smog fee, a small charge for a smog certificate, sales tax and license fees (also known as DMV fees), so check these also. If in case you notice any additional charges then, you should ask questions about that why this addition has been made to the contract?
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