Sometimes buying a new vehicle doesn’t make sense for your family. Thanks to the drastic depreciation of new cars when they are removed from the lot, used cars are often a cheaper option. But how can you know that you are getting a good deal? And how can you be sure that the vehicle is reliable? This checklist will help you buy with confidence.

1. Make a budget.

Decide what you can afford, whether you’re buying the vehicle outright or looking to finance it. Keep in mind that used cars are generally financed at a higher rate, and factor that into the final price. Stick to your budget and don’t buy impulsively. Walk away and keep looking if a car isn’t priced right. And this is the perfect time to practice your negotiation skills! Even if it makes you uncomfortable, most sellers expect to haggle a bit and this can save you a lot of money.

2. Do your research.

Before going to a car lot or meeting a private seller, you should research the best models within your price range. Find out what prices people in your area pay to see if you’ve found a good deal. Also, research the most common problems with popular models and find out what warning signs to look for. Then take your time shopping.

3. Give it a try.

Once you’ve found something you like and that fits your budget, it’s time for your test drive. Are you comfortable getting in and out of the vehicle? Do you have enough room for your head, elbows, and legs? You will likely spend a lot of time in the car, so make sure you are comfortable. Also, take the time to inspect the vehicle carefully. Look for any signs of an accident, check the tires, and make sure the lights, signals, and air conditioning are in good working order.

4. Get a mechanical inspection.

Even if the service engine light is not on, used cars can have serious problems lurking under the hood that you may not be able to detect during a routine test drive. A salesperson must be willing to allow your mechanic to check the vehicle; otherwise, beware of a shady deal. If your mechanic finds a minor problem, the seller can lower your asking price. But if the problem is severe, you should probably look for another option.

5. Get the paperwork.

You should never buy a car that does not have a clean title. Ask to see the title and registration before submitting your payment, especially if it is from a private seller. For your protection, you should also request a bill of sale. Once you own the vehicle, be sure to sign the title and update the labels and registration. Then drive your new vehicle all over town!