Buying a used vehicle comes with its fair share of problems, but by far the biggest issue is paying too much. There are ways to prevent getting taken to the cleaners the next time you buy a used vehicle. By following five simple tips you can avoid the following:

• Future collection worries.
• Not getting your moneys worth.
• Buying a "lemon."
• Getting hassled by salespeople.
• Giving in to the desperation of needing a vehicle now.

Tip #1 Always pay with cash.

Buying a used vehicle with cash works for a few reasons:

1. The life of a used vehicle is an undetermined variable. If you've ever owned a vehicle before you know that after it gets some miles on it things start going wrong. With that fact in mind, it is quite reasonable to just pay with cash upfront so that if something goes wrong with the vehicle and you need to buy a new one you won't end up having to worry about that old vehicle payment. Plus you lose the fees and interest associated with financing. In the end the vehicle is cheaper and if it dies on you then there is no risk of dealing with trying to pay for a new vehicle in addition to the old one.
2. Salespeople love cash payments. That is why anywhere you go that offers financing also offers an incentive to pay cash. The company gets their money without a hassle meaning the salesperson gets their money without a hassle. Gone are financing worries or worse, court battles over collections.
3. You have the piece of mind knowing that you own the vehicle outright. There are no worries of the repo man making a stop at your door or trying to scrap up money to make the monthly payment. It is yours - free and clear.

The bottom line here is that it just makes more sense to buy with cash.

Tip #2 Know what your money is worth.

If you go into a vehicle buying experience knowing nothing about vehicles you are going to have some problems. Research is essential to being able to get a vehicle for the price you want. You must have an idea of what you want and its average selling price. Go online and browse for sites that can give you pricing information. Figure out exactly what you are looking for and how much is being asked for that particular vehicle. Do not limit yourself to one certain make and model. For example, if you want a compact vehicle then look at four or five different models. Also go to dealerships and check out what they have available. You are most likely to get the best deal on something that seems to be easily available. Be thorough in your searching.

Most dealers base pricing on the Kelley Blue Book. This is basically a handbook that lists the fair market value of a vehicle. These values are listed based upon different factors regarding its condition. This is available online at www.kbb.com. They have a special section that will tell you what a dealer in your area will or should be asking. This is an invaluable tool when pricing a vehicle.

Figuring out what a fair price is for the type of vehicle you are looking for is important. Having this knowledge prevents you from paying too much.

Tip #3 Inspect the vehicle before speaking with a salesperson.

It is common knowledge that before buying a vehicle you should test drive it, but many people rely on the test drive alone and that is not wise. Looking over the vehicle is just as important. There are some certain things that can prove to be quite costly if they end up needing work or replaced. Some minor problems are to be expected with a used vehicle, but it doesn't hurt to make a mental note and try to get the price lowered based upon repairs you will have to do if you make the purchase. The following list are things you should check before the test drive:

Windows - There should be no chips or cracks and all should work properly.

Body- There should not be any major damage or excessive rust.

Tires- This is basically a negotiation point as most used vehicles will need new tires soon after you buy them, so just inspect the tread left on all four and the spare.

Trunk- It should open and close properly. Also make sure the dealer has the key.

Interior- There should be no major rips or stains. Knobs and such should not be missing. Especially look at all the seatbelts to make sure they work properly.

Mirrors- All should be there and work properly.

Doors- They should open and close easily. Also check that the locks work properly.

Radio- This is another negotiating point. It should work properly and all speakers should work.

Now you should take a look at the mechanics of the vehicle. If the vehicle has a record of its maintenance history that is a big plus and well worth taking a look at. Check for repeat repairs as this could point to a problem. Most used vehicles, however, will not have these records, so you have to rely on what you can figure out. Take a look under the hood for the following:

New parts: If there seems to be a lot of new parts this can mean one of two things - either the previous owner decided to dump the thing before it ate up any more money or the previous owner couldn't find the real problem. Rely on what you experience during the test drive and

Oil: If there is oil all over the place under the hood then there could be a major problem brewing. You can expect some oil around the engine, but if there is oil on the belts and hoses -- beware. An oil leak can lead to major issues down the road.

Worn belts or hoses: If you see tears in belts or holes in hoses know that repairs will be needed soon to keep the vehicle in working order.

These are just three of the major things to check out. The test drive will let you know about the condition of the transmission, breaks, and other possible issues. Be cautious if you experience anything on the list below during your test drive:

Loud muffler or fume smells inside: This can point to an exhaust problem.

Spongy, stiff or noisy breaks: This could be a minor problem, like the breaks are new or need the air bled out of the lines. It could also point to major break problems. Definitely be worried if you hear any grinding sounds.

Steering wheel shaking or noises when turning: This could point to numerous problems from wheel bearings to steering column issues.

Shifting hard or at the wrong time: This could signal a transmission problem.

Any other noise: Your test drive should be fairly quiet. You should only hear quiet humming from the fan or heater, not any loud noises.

Ask the salesperson directly about anything that bothered you during your inspection of the vehicle. If for some reason the dealer refuses to let you inspect the vehicle and test drive it, take that as a sign you do not want to do business with this dealership. The two main points of inspecting the vehicle are to make sure there are no major problems and to gather some information that you can use when negotiating the price.

Tip #4 Be firm with the salesperson.

Sometimes it is hard to be firm , but when speaking of salespeople it is a necessity. They have some very specific tricks they use to get you to buy what they are selling. The following list includes some information about salespeople and their selling techniques.

1. The goal of any salesperson is to sell so they make their commission. This is the way they earn their living and while some claim to have your best interests in mind, most are just wanting that paycheck. Not everything that a salesperson says can be completely believed. If you sense hesitation or vagueness in responses then either the salesperson knows nothing about the vehicle you are asking about or is trying to hide something that would stop you from buying.
2. They always have a positive attitude. No matter what shape the vehicle is in the salesperson will find something to rave about. They also have a way of turning bad things into positives. They will continue to talk until they convince you to believe in what they are saying. Watch out for too much emphasis on one particular feature as this may end up being the only good thing about the vehicle. Don't let then side-step the issues you are bringing up. Make them directly address anything you say. Don't start using the word "yes" either. It is a proven fact that once a salesperson gets you saying yes and agreeing with them on any point, that getting you to say yes to buy will be that much easier. Try to respond in a neutral manner and disagree when you feel it is necessary.
3. They try to be your friend. The salesperson tries to make you very comfortable with them and make you feel a connection with them. The philosophy of this move is that if you start to like them you will be less likely to say no to them. Don't buy into it. Never feel obligated to buy a vehicle. It is your choice to buy or not. Remember that you have brought the amount of money you are willing to spend with you and let the salesperson know that. If they start talking about financing just say you are not interested that you would like to pay with cash. Do not let them talk you into spending more. Be firm and stick to the amount you have in cash.

Keep these three points in mind and you will have a better chance of handling the salesperson and not getting pulled in by their little tricks.

Tip #5 Be willing to walk away.

When you are negotiating the price of a vehicle you need to be in control at all times. You need to command the negotiations and, basically, run the show. Let the salesperson know you will walk away if they can not meet your price. In any given town you can find three or more dealerships that all would love your business and the salesperson knows this. If you feel like you are losing control of the conversation or being dominated by the salesperson then simply walk away. This is the strongest tool you have in the vehicle buying process, so always keep it on the table.

If you go into a dealership with the proper attitude and information you will succeed in buying a vehicle for the price you want. Learn these five tips and use them.

1. Always pay with cash.
2. Know what your money is worth.
3. Inspect the vehicle before speaking with a salesperson.
4. Be firm with the salesperson.
5. Be willing to walk away.

Now go out there and buy!