Buying a used car can be a very rewarding experience if you are vigilant and seek as much information as possible to avoid potential headaches in the future. Regardless of whether you buy a used car from a dealer, a co-worker, or a neighbor, there are certain tips you should follow to learn as much as you can about the car. You should examine the car yourself using an inspection checklist. You can find templates for checklists in many of the magazine articles and Internet sites that deal with buying a used car.

Try to test drive the car under a variety of road conditions; on hills, highways, and in stop-and-go traffic. Be sure to ask for the car's maintenance record. If the owner doesn't have copies, contact the dealership or repair shop where most of the work was done. They may share their files with you. Talk to the previous owner, especially if the present owner is unfamiliar with the car's history. Have the car inspected by a mechanic you hire.

Research the frequency of repair and maintenance costs on the models in auto-related consumer magazines. The U.S. Department of Transportation's Vehicle Safety Hotline and website gives information on recalls.
The National Insurance Crime Bureau maintains a free database that includes flood damage and other information so people can investigate a car's history by its vehicle identification number (VIN).

Check a trusted database service that gathers information from state and local authorities, salvage yards, and insurance companies for an independent and efficient review of a vehicle's history. For example, the Department of Justice's National Motor Vehicle Title Information System,is an online system that offers accurate information about a vehicle's title, odometer data, and certain damage history. Expect to pay up to $4 per report.

If You Encounter Problems

In the event you have a problem that you think is covered by a warranty or service contract, there are certain steps you should follow to get service.The first thing you should try is to obviously try to work it out with the dealer. Talk with the salesperson or, if necessary, the owner of the dealership. Many problems can be resolved at this level. However, if you believe you are entitled to service, but the dealer disagrees, you can take other steps.

If your warranty is backed by a car manufacturer, get in contact with the local representative of the manufacturer. The local or zone representative is authorized to adjust and decide about warranty service and repairs to satisfy customers. Some manufacturers also are willing to repair certain problems in specific models for free, even if the manufacturer's warranty does not cover the problem. Ask the manufacturer's zone representative or the service department of a franchised dealership that sells your car model whether there is such a policy.

Get in contact with your local Better Business Bureau, state Attorney General, or state Department of Motor Vehicles. You also might consider using a dispute resolution organization to arbitrate your disagreement if you and the dealer are willing. Under the terms of many warranties, this may be a required first step before you can sue the dealer or manufacturer. Check your warranty to see if this is the case. If you bought your car from a franchised dealer, you may be able to seek mediation through the Automotive Consumer Action Program (AUTOCAP), a dispute resolution program coordinated nationally by the National Automobile Dealers Association and sponsored through state and local dealer associations in many cities. Check with the dealer association in your area to see if they operate a mediation program.

If none of these steps is successful, small claims court is an option. Here, you can resolve disputes involving small amounts of money, often without an attorney. The clerk of your local small claims court can tell you how to file a suit and what the dollar limit is in your state.

The Magnuson-Moss Warranty Act also may be helpful. Under this federal law, you can sue based on breach of express warranties, implied warranties, or a service contract. If successful, consumers can recover reasonable attorneys' fees and other court costs. A lawyer can advise you if this law applies.