by Bobby Coles

Created on: July 07, 2010   Last Updated: July 19, 2010

Used cars are a lucrative business, but only for those on the selling end. When buying a used car, it is essential to heed careful notice of some of the biggest mistakes that people tend to make. Foraying out into the unknown is a scary proposition, and as such, many folks tend to trust the used car salesman that is desparately trying to put food on his own table.

Not knowing enough about cars is another point of contention, because people can be easily duped when they lack the necessary knowledge of a certain topic. Before you head off to buy a used car, take some time and do your homework, as this will save you untold money in the long run.

People often delve into the realm of buying a used car without having done the requisite research. Many dive headlong into a deal without negotiating for a better deal, without having read up on Consumer Reports, without test driving vehicles, or without securing the best possible method of payment once a suitable used car has been found. These are some of the biggest mistakes made when buying a used car. Take the time and do a little bit of leg work, as this will save you a thousand tiny headaches down the road.

The biggest mistakes made when buying a used car tend to involve the actual cost of the vehicle, and the financing that you sign up for. Auto loans can be a nightmare for the unsuspecting customer that seems to think they got themselves a great deal. The truth about long-term auto loans will scare you into making extra payments in order to pay off the car early.

Used cars have depreciated immensely, and even when you drive them off of the lot, they will no longer be worth nearly what you just paid. The mark-up on used cars is horrific, making it one of the worst possible transactions possible. Cars are poor investments to begin with, since they constantly depreciate in value, but a good used car can last you a long time, and might be at just the right price for your particular financial situation. You may need to figure out the best way for you to consolidate your debt before acquiring a used car.

Don't forge the negotiation factor. Used cars come with a hefty price tag, considering what you are going to get for a trade-in. The sticker price is just an arbitrary sum, so be sure to haggle as much as possible, because there is a ton of wiggle room with used cars. Do not ever pay the price listed, as this is a very big mistake people make when buying a used car. Salesmen will try any old song and dance routine to

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