The excitement of purchasing your first used car can be felt up until the moment there's a problem. The engine light is on 3 days after buying. The title is found to have a lien on it. The seller that seems to be completely reasonable refuses to accept calls after the sale.

There is nothing abnormal about any of these. Car scams and bad deals occur all the time and first-time buyers are always the ones being targeted. Not because they're naive, but because they'd just like to find out what to look for and what questions to ask.

The following checklist will guide you through all the steps. If you do stick to it you'll be in a much better position than most people who walk into a used car deal without preparation.

Don't wait until you start looking to determine your budget

People who are buying their homes for the first time often have an incorrect idea of what they are spending. They choose a number that they can afford to fund monthly payments for, and end up with a financing option which can cost them much more than the vehicle is worth.

Don't focus on the monthly payment, concentrate first on what you can realistically afford for the car, and then add insurance, registration, sales tax and a small cushion for the first few months of any problems, just like the $10,000 car budget and $10,000 car are not the same thing.

Determine in advance if you'll be purchasing from a private party or dealership. Private sales are typically less expensive, but provide no warranty protection. Dealerships will charge a premium, but may provide some kind of guarantee or have a certified pre-owned vehicle warranty. There are darned up scams embedded in both routes. Both are covered by the checklist.

Step 1: Research the Vehicle Before You See It in Person

After you have identified a listing that you are interested in, DO NOT contact the seller first. Research about the car.

Check owner forums and reliability databases for the make, model and year. There are known transmission issues for some vehicles at specific mileage points. Others experience electrical gremlins, timing chain problems or rust issues that occur regularly. If you know this before you examine the car, then you will know what to look out for when you arrive.

Use at least two sources to check the market value. Kelley Blue Book, and Edmunds will offer you a realistic range of value for the car based on the mileage, the trim, the condition and your zip code. If it's much higher, you know what you're getting into. If it is significantly below, learn the reasons first and don't be too excited.

Prepare a list of a few questions to ask the seller before their phone call or message. For how long has it been their home? What's prompting them to sell? Have there been any accidents? Has it had any major repairs? How many miles does it get on it every year? The answers are not as important as the way in which they answer. When a person hesitates, is vague or is irritated at simple questions, this is a sign.

Step 2: Run a Vehicle History Report

Do this prior to visiting the car. Not after. Before.

The price of a vehicle history report ranges from $20 to $40, depending on the type of report. One can be obtained from the Cheap Carfax Report, which draws from the same underlying data. You only have to have the VIN, and any seller should provide it to you..

The report will display to you:

• Accident history and severity.
• The number of previous owners is not considered in this case.
• Title (clean, salvage, rebuilt, flood or lemon law buyback)
• Different odometer readings for various times in the car's history
• Records service when vehicle was serviced at reporting shops
• If the car was used as a rental, taxi or fleet vehicle, state if it was or wasn't.If the car was used as a rental, taxi or fleet vehicle, indicate yes or no.

A single accident on a vehicle history report will not exclude a car. The extent of the damage and type of repair is a major factor. The things you look for are a mismatch in history, an odometer or salvage/bulled title the seller didn't tell you about, or odometer readings that indicate tampering.

Don't contact the seller if they don't give you the VIN or if they discourage you from running a report.

Step 3: Carefully examine the exterior

Before opening the door upon arrival to inspect the car, perform an exterior inspection. Making a good impression is nice, but a slow walk around the car offers a lot more information.

Inspect body panels for discrepancies. Walk from one end to the other end of the car, and view the vehicle at an angle from the ground. If panels do not match in color, surface texture, or if there is visible overspray around body seams, then there are signs of past collision repair. Check the walls of the engine compartment; if they are raw metal or factory-painted, the paint has been smoking.Check the engine compartment walls; if the walls are raw metal or factory-coated, the paint smoke.

Check door jambs. Original factory paint should be on the inside edge of each door and on the door frame. Sometimes repainted panels only extend to the edge of the door, creating a noticeable seam.

Look for gaps between panels. There should be even and consistent gaps from hood to fender, door to quarter, trunk lid to rear quarter. If there are gaps that are uneven, the car was involved in a collision that had an impact on the body structure.

If possible, get under cover. Use a flashlight to inspect frame rails, subframe and floor pan. Brake rotors may have rust on the surface. Structural rust of frame components is not.

Step 4: Check Interior

The interior will tell you how the car has been used and treated, and will not always be reflected in the listing pictures.

Pressing down on the outside edge of the seat cushion (the seat bolster), sit in the driver's seat. The foam and fabric there deteriorates with high mileage vehicles. The difference between a 150,000 mile old seat and a 40,000 mile old seat is quite noticeable. If the seat is new, but the odometer indicates a high mileage, this will be indicated.

Check the steering wheel leather or material. The odometer may tell a story of actual use when excessive wear, cracking, or a shiny spot where hands are most often is a story.

Raise all floor mats and push down on carpet underneath. Smells usually persist even after the carpet has dried out completely after a flood. If there is mildew, mustiness, or a slight chemical smell in the car that doesn't stem from anything else, it's a big problem. Look under the mats for rust stains on the floor pan or moisture stains around the sides.

Examine the headliner. Any water stains from a leaking sunroof, windshield seal or roof are visible there. Check into the lower corners of the windshield from the inside; if there is a hairline crack or if the seal has lifted, then the windshield has been improperly replaced and may be structural and safety related.

Step 5: Under the hood

As a non-mechanic I don't think you will need to take apart anything to perform a useful under-hood inspection. It takes only a little knowledge of what to look for.

Check the oil. Take out the dipstick and clean on a white cloth or paper. Amber or light brown oil is clean oil. Black grimey oil indicates that the car has not been changed in a while. A foamy, milky oil is very serious and it means that the oil has mixed with the coolant, which suggests a cracked head or a failing head gasket.

Inspect coolant reservoir. The coolant is supposed to be green, orange, or pink in color, depending on the type of coolant. If the coolant is brown, oily or rusty, there are problems. If there is no apparent cause for a low coolant level, it should also be investigated.

Look for leaks. Inspect the valve cover, oil pan and hose connections.

Check the belts and hoses. All broken or glazed serpentine belts, soft or swollen hoses and leaking or deteriorating rubber anywhere beneath the hood imply upcoming repair expenses.

Step 6: Test Drive Checklist

Don't miss test driving. Don't allow a seller to restrict it to a quick turnaround around the corner. Highway speeds are required, full braking is required and adequate warm-up time is required.

When driving, here are some things to look for:

Cold start behavior. If possible, start the car up from a cold start. Check for ticking, knocking or rattling noises that go away after warm up. It's fine if there is some noise when the engine is cold. It's not that persistent post-warm up knocking.

Brakes. Squeeze the pedal down and observe the pressure. A healthy pedal should be firm and engage readily. If the pedal feel is soft, spongy or sinks under foot when stepping on it, it is a hydraulic issue. Both sides pulling towards each other indicates uneven braking, which can be due to a stuck caliper or suspension issue.

Transmission behavior. If an automatic transmission hesitates or hesitates and fails, you are probably having a problem. Any of these are warning signs: slipping, delay in acceleration, clunking between gears or shuddering. That the clutch or gear shift is clean and fluid should be done without grinding or trouble in engaging the clutch or gears.

Steering. Hands on steering wheel (lightly) with the car straight. Ruddering, wandering or vibration at highway speeds is a sign of alignment, tire or suspension issues.

Warning lights. All of the dashboard warning lights should turn on for a short period of time during start-up and then turn off. If the light is on during driving, there is an active fault code. If any light that is not lit at start up is not lit at all, it may be tampered with.

Unusual smells. Any of these smells are a sign of a problem and should be investigated: burning oil smell, burning rubber or a sweet coolant smell while driving. Don't shrug them off.

Step 7: Get a Pre-Purchase Inspection

It's an absolute must for a first home buyer.

Get a mechanic to take a look at the car before you make the purchase, but not the same mechanic the owner has recommended. Budget $100 to $200 for this. The mechanic will examine the car's suspension, inspect for leaks, and will scan the OBD-II port for trouble codes, inspect the brakes and tires, and provide you with a written report of what issues and repairs they expect they will find.

Avoid purchasing a home from a homeowner who does not allow their home to be inspected prior to purchase. This is more information than the inspection would provide.

A good mechanic will also be able to provide you with an idea of what maintenance will be required in the future (when the timing belt needs to be replaced, the brakes need to be changed, or the tires need replacement, for example).

Step 8: Check the Title and Paperwork

This is where many first time buyers relax, as they are thrilled about the car and want to be done with the process.

Be careful to read the title before you sign:

The name of the seller and the title must have the same name. If it doesn't, then you are not purchasing from the legal owner. Do not proceed.

Check the title status. Clean title: No big problems. Salvage Title – This indicates that the vehicle was totaled by an insurance company at some time. A rebuilt/reconstructed title indicates that the salvage vehicle has been repaired and retested. Salvage and rebuilt titles are not necessarily a deal killer but they should be priced accordingly and be a clear part of the transaction. That would be a big violation of trust if you noticed those without being told about them.

Check for liens. A lien is a financial stake in a vehicle by a lender. At the time of purchase, if you are purchasing an undisclosed car with a lien, then the lender can legally take the car away from you even after you own it. Look up the VIN at your state's DMV or verify with your bank before you make a payment.

Step 9: Negotiate Without Pressure

At this stage, you are at the stage of doing your homework. You know the value of the car, the history of the car, you have a mechanic's assessment of the status of the car.

All of that information you will use when you negotiate. If you determine that there are $600 in necessary repairs, request $600 off of the price. If it has been involved in an accident that was minimized in the vehicle history, it can impact value. Similar listings work as a leverage as well.

Don't rush the negotiations. “This is only going to be available until tonight” or “Another buyer is on the way” are pressure tactics designed to keep you from having time to think. A nice car that is worth a purchase will still be worth a purchase tomorrow.

Be prepared to get out. It is the position a buyer can be in that is the single most powerful position.

Common scams and how to identify them

The title washing scheme. A vehicle that has an “as is” salvage or flood title is registered in a state with more relaxed regulations, and it gets a clean title. It is then sold as a clean title vehicle. Your greatest safety is a detailed cheap carfax report and physical examination.

The curbstoner. A party who purchases a number of vehicles and resells them without a license as private sales to evade dealer requirements and disclosures. The following are indications: if there are several cars being sold under the same licence plate, if the seller has a “few” cars for sale, or if the seller doesn't tell you how he or she got the car.

Online deposit scams. A listing is listed at a very low price and may have nice looking pictures. The "seller" requires you to pay a deposit or the entire cost of the car before picking it up in person, claiming that he or she is away on military duty, working out of state, or similar reason. Do NOT wire money to purchase a car that has not seen your eyes.

VIN cloning. VIN is changed for a stolen vehicle to that of a real vehicle of the same car brand and model. The car will show up in history checks as "clean" because the VIN number is of another car. Check to make sure that the Vehicle Identification Number (VIN) is the same on the title, door jamb, and dash.

The Short Checklist Version

To use as a quick reference before your next car visit:

• Do some research before calling the seller to see how reliable the vehicle is and how much it is worth in the market.
• Before going to see the car, obtain the VIN and perform a vehicle history check!
• Check door jambs, body gaps and paint for collision repair damage
• Inspect the car for structural rust under the vehicle.
• Moisture and mildew smell can be prevented by pressing under the floor mats.
• Check Oil and Coolant Condition Beneath Hood
• Test drive at highway speeds with full braking capabilities
• Have an independent inspection before buying
• Ensure the title is correct and doesn't have any liens.
• Complete a written bill of sale.

Final Thoughts

The used car market may not seem like a minefield, but it can be navigated with the proper approach. The majority of those selling are not in active scams. But, not many of them are doing their utmost to let you know if there are issues — they're hoping you don't.

As the buyer, all you have to do is observe. Take your time. Don't be afraid to ask awkward questions. Pay the $150 to the mechanic. Execute history report. If something doesn't feel right, get away from it.

There is a right car waiting out there! When you locate it, you will know because the inspection is clean, the documents are correct and nothing about the deal would make you need to ignore your instincts.