Car shoppers know that a new car depreciates by as much as 20-percent the moment it leaves the dealer's lot. Buying "pre-owned" can mean big savings because the first owner took that initial depreciation hit. That is why so many bargain hunters prefer used vehicles, but for some, buying a used car can feel like a bit of a gamble. Here are some steps you can take to help even the odds.

• Do Your Homework - Check all available resources and data, including consumer reports and automotive magazines, about the car you are planning to buy.
  
  
• Take a Look - Make sure the body parts line up, the paint matches, doors open and close easily and the tires show even wear.
  
  
• Lift the Hood - Check under the hood for leaky hoses, worn belts, and dirty oil. Automatic transmission fluid should be clear and reddish, and not smell burned. Radiator water should have a light yellow or green color.
  
  
• Take a Seat - Turn the ignition key to accessory and make sure all of the warning lights and gauges work. Start the car and check all lights and accessories and make sure no warning lights remain lit on the dashboard. Pay close attention to airbag warning lights.

• Listen - Race the engine for a few quick bursts and listen for knocks, look for smoke and make sure the idle runs smooth.
  
  
• Hit the Road - Take the vehicle up to 35-40 MPH. Make sure shifting is smooth and steering is straight. When braking, a pull to the left or the right could indicate a brake problem. The steering wheel should not shimmy at high speeds, and cornering should be smooth.
  
  
• Check the Sources - Buying through the classifieds? Check the name on the title and match it to the name on the seller's driver's license. Many unlicensed, unregulated dealers are disguised as private sellers.
  
  
• Go to a Pro - Always get a pre-purchase vehicle inspection from a qualified and trustworthy mechanic.
  
  
• Look for Certified Pre-Owned Vehicles - Dealers will typically perform comprehensive inspections and provide a limited warranty in addition to any remaining on the original for Certified Pre-Owned cars.
  
  
• Ask for a CARFAX Vehicle History Report - Most used car dealers should provide a vehicle history report. If the seller doesn't offer a vehicle history report, order one online.
  
  
• Sign Up for CARFAX Hot Listings - Used car shoppers can receive free email updates and view listings based on specific search criteria. All CARFAX Hot Listings include a free CARFAX Vehicle History Report.

Because new vehicles lose so much of their value as soon as they're purchased, used cars are a smart financial alternative. Thanks to manufacturing and maintenance advances, they are better than ever and still a great value...just so long as you remember the old adage: "buyer beware."