How do you buy a car for half the original price or less? Simple- buy a previously owned automobile, better known as a used car. The problem is, many fear that a used car is not a good deal. Cars, like other machinery, wear out. Thus, the value of a car decreases with age, mileage, and use.

But, buyer beware. Ask yourself these questions before buying a used car.

How Much Can I Afford to Spend?

First, figure out how much your budget will allow you to spend on a car. Newspaper ads can then give you an idea of the year and model of cars that fall into your price range. In some countries, banks, loan institutions, and some libraries have monthly guides listing the prices of used cars. And of course you can go online where there are lots of sites showing used car prices. Be sure to calculate not only the price of a car but also the expense of taxes, registration, and insurance. Also plan to have some money for unexpected repairs the car may require after you buy it.

What Kind of Car Do I Need?

When deciding what you need, determine what is important to you. Consider your family size and what activities the car will be used for, such as driving to work, transporting your children to school, and going on vacation. Will the car be used for local trips or long-distance ones? Don't limit yourself to a specific make and model; rather, look for a car that has been maintained well and is in good shape. Get a car that is easy to service. All cars will need parts eventually. In your area is there a supplier for the appropriate parts? Parts for cars over ten years of age can be hard to obtain. If you are on a limited budget, steer clear of luxury or imported specialty cars, as parts and service will no doubt be more expensive. Although such cars may be very reliable, they can also be very expensive to own.

Is It a Good Car?

A good car is one that has been serviced well. Generally, it is best to avoid cars with extremely high mileage--especially if this is the result of driving in the city rather than on highways. What constitutes high mileage may vary from place to place. No used car will be perfect. However, will you be able to afford the repairs the car needs? Usually the repairs will not increase the value of the car. For example, if you buy a car for $5,000 and then spend $1,000 on needed repairs, the car will not necessarily be worth $6,000. Usually, it is less expensive to buy a car in good shape than it is to buy a car in bad shape and fix it up.

With the current credit crunch there are some really great deals to be had out there. Just make sure you give careful thought to the above points and likely you could end up with a good second hand car at a good price.