1. List your criteria for a car

The recommendations for buying a new car also apply to used cars. When thinking about used cars, begin by writing down your wants, your needs, and your budget.

Budget may be a big consideration, but don’t assume you can’t afford the kind of car you need. With used cars, you have a lot of flexibility. To save money, you can look at an older car or one with more mileage.

Advantages of buying a used car:

• New cars “depreciate” rapidly. They often lose a quarter of their value in the first year. When you’re buying a used car, this works to your advantage.
• Say you can’t afford to buy a certain new convertible. The same car may fit your budget when it’s two years old.