Shopping for a used car may seem like an insurmountable task, but it does not have to be. The following tips will help you purchase the right car, arrange a payment plan you can afford and establish a business relationship with a trustworthy and respectable used car dealer.

▪Research dealerships before you shop. This may involve an internet search for used car dealers in your city as well as phone conversations with reputable candidates. Finding a used car dealership with true in-house financing who reports to the credit bureau will benefit you beyond the joy of driving your new used vehicle. In house financing means that rather than outsourcing to a bank, the dealer is your lender. This type of loan can prevent the damage that could be caused by having a major bank make multiple inquiries on your credit. Make sure your lender reports to a credit bureau, which will allow you to improve your credit score as you make timely payments on your loan.

▪Know how much to spend. Realistically analyze your budget and determine how much you can afford to spend for a monthly payment. Do not push your payment to the maximum, as you may have increases in insurance payments to consider as well. Use the internet to obtain the generalized resale value of any used car you are considering, which will give you a good idea of a fair price before you start any pricing discussion at the dealership.

▪Do your homework. You likely have a few ideas in mind for the type of car you are seeking. Research how certain makes and models stack up against competitors and read accounts of owners' experiences with certain vehicles on the internet and in consumer journals. Develop an educated opinion about the benefits and shortfalls of different vehicles, and evaluate them against your personal vehicle requirements.

▪Perform a background check. Thanks to CARFAX, consumers can now find out the history of a particular vehicle and avoid purchasing one with hidden problems. Reputable dealerships will provide a CARFAX report to potential buyers on all of their vehicles at no cost. But you can obtain a report on any vehicle yourself for a fee if necessary. The CARFAX report will advise you whether a car has been salvaged, flooded, seriously wrecked, used as a rental, or stolen among other things.

▪Get a second opinion. Even highly praised vehicles with a reported perfect history can have problems under the hood, and you never know why previous owners replaced them. Before finalizing your purchase, have the car lifted and inspected by a trusted mechanic who can advise you about problems the car may have. If a car requires major repair and you feel the dealer has concealed important information from you, take the hint and take your business elsewhere.

When shopping for a used car, seeking instant gratification may translate to settling for a vehicle that will not provide you with enduring satisfaction. Remember that a car is a long term investment and you must consider your long term intentions when making the purchase. Take your time, and use common sense about the background of the vehicle you want and the dealership you are working with. Whether you find the perfect vehicle on your first try or spend months searching, the ultimate goal is to end up with a reliable vehicle you love and a financial situation you can manage for the long haul.