LeBron eyeing return from injury

CLEVELAND (AP) -- LeBron James' injured finger passed the required practice test. It's game time.

James, who has missed Cleveland's past five games -- all losses _ with a sprained left index finger, is expected to be back in the lineup on Tuesday night when the Cavaliers host the Indiana Pacers.

Following practice on Monday, James said the finger has improved and that he didn't have any problems with it after two days of contact. The Cavaliers' megastar sounded confident that he would dress for the Pacers.

"We're going to leave it as a game-time decision," he said. "I've been through two contact practices OK. We'll see what happens."

James has been wearing a protective glove over the knuckle on his finger, which was injured on Nov. 28 when Detroit forward Nazr Mohammed whacked his hand while he was driving for a shot in a loss to the Pistons.

"It's better than it was a week and half ago," James said. "The pain is going away little by little. It's not 100 percent at all right now and it probably won't be until the offseason, and I don't have an offseason until 2009."

He will play for the United States in the Beijing Olympics this summer.

James, the NBA's leading scorer who was playing some of the best ball of his career when he got hurt, was surprised the Cavs played so poorly without him.

"Offensively not as much, but defensively we struggled," he said. "You have mental lapses offensively, but you can't have those defensively no matter who is playing. We had a couple games where we just didn't give effort."

Along with James, the Cavaliers may welcome back forward Anderson Varejao on Tuesday. Varejao, who ended a contract holdout by signing a three-year, $17 million deal last week, was in Canada getting his work visa.

If the Brazilian gets back in time, Cavs coach Mike Brown said he would likely play him against the Pacers.

Anderson's return, along with guard Larry Hughes being back after missing time with a leg bruise, has renewed confidence for the Cavaliers, the defending Eastern Conference champions who are off to a 9-12 start.

"It's starting to feel good around here, especially the last couple days of practice," James said. "Everyone is back now so we're ready to start playing winning basketball again."

James, who had never missed more than four games in a season, said not being able to play has been excruciating.

"It's not good for me," he said. "It's not like I'm learning anything from watching. I don't learn nothing from watching. It's tiring. I could really fall asleep on the bench if I wanted to."

The hottest mortgages? They pay you

Lenders have rolled out reverse mortgages with larger payouts and lower fees, giving older Americans new ways to take advantage of their home equity. But the options can be confusing.

It may sound hard to believe, but one part of the mortgage market is hot: reverse mortgages. That's giving older homeowners more options to tap the equity in their homes but also opening the door to more confusion and mistakes.

Only a year ago, homeowners interested in reverse mortgages had little to choose from beyond the plain-vanilla government-backed products that have long dominated the market. Such mortgages essentially allow homeowners at least 62 years old to sell a large chunk of their home equity back to a bank or another lender in exchange for a lump sum, monthly payments or a line of credit.

Now, nearly a dozen large banks and mortgage lenders have launched reverse-mortgage products with lower fees and larger payouts. One lender has reduced the minimum age requirement to 60; others are making loans on second homes and vacation rentals. "Jumbo" reverse mortgages, for houses valued at as much as $10 million, are becoming more common.

With a reverse mortgage, instead of the borrower making payments to the lender, the lender makes a payment or payments to the borrower. The borrower keeps control of the house and doesn't have to repay the money as long as he or she lives there. When the homeowner dies or moves out, the loan is typically paid off by selling the house, and any money left over goes to the homeowner or the homeowner's estate.

A better life in retirement

The product is evolving from meeting basic needs to fulfilling the desires of a new generation of retirees, from funding a vacation getaway or recreational vehicle to renting a Paris pied-à-terre. The new options, though, mean more potential for confusion among consumers and a bigger chance that they could miss out on getting the best loans for their situations.

And as home prices fall around the country, some homeowners stand to be disappointed. "We're seeing people apply for a reverse mortgage and find out their home is worth 5% less than they thought," says Jeff Taylor, the vice president of Wells Fargo's senior products group in Greensboro, N.C.

With so many competing offers to choose from, homeowners could easily wind up paying more in fees and interest rates than they should. Fees are typically steep -- more than 5% of the home's value -- and most borrowing limits are capped based on where the homeowner lives. Fees are paid upfront or financed, while interest rates affect how much of your equity the lender ultimately takes.

Reverse-mortgage lenders traditionally have charged variable interest rates. Now, fixed rates are available, but they may cost you more, says Barbara Stucki, the director of the National Council on Aging's home-equity initiative.

Because of all the choices, homeowners need to be "a lot more strategic" in how they shop for reverse mortgages, Stucki says, factoring in how they want to take the payments and how much money they want to take upfront.

The boom in reverse mortgages helped Ronald Prast, a 74-year-old Phoenix retiree. When he first applied two years ago, he was told by a loan officer that he wasn't a good candidate; government rules would have allowed him to cash out only a small portion of the value of his half-million-dollar home. But last November, when Bank of America introduced a reverse mortgage that allows homeowners to borrow as much as 65% of a property's value, up to $10 million, Prast and his wife, Carolann, quickly signed up.

The couple's house, for which they paid $105,000 in 1981, was appraised at $540,000, Prast says. They used an initial draw of $208,000 to pay off their outstanding mortgage, a home-equity loan, one year's property tax and loan fees, freeing $21,000 a year formerly used to make mortgage payments for travel and indulgences such as paying for a granddaughter's semester in Australia. They also have a credit line worth $75,000 that they are setting aside for medical expenses.

Protect Your Home

Some ideas:

GET REAPPRAISED. If the house has tumbled in value, your property taxes should, too. So get your house reappraised by your municipal assessor. You may even be able to petition, or sue if you must, to get back some taxes you overpaid in past months.

HOME OFFICE. Got a room you use to make a living? Dust off your receipts. You might be able to deduct some depreciation and a pro rata share of utilities and maintenance. The depreciation lowers your cost basis, which can come back to bite you when you sell at a profit. But if the property has lost value, this is not an issue.

Many caveats apply, since the Internal Revenue Service closely scrutinizes home-office deductions, warns Mark Nash, a partner at PricewaterhouseCoopers' private company services. If you are an employee, (a) the home office has to be not just permitted by but useful to your employer, and (b) only the amount exceeding 2% of adjusted gross income can be claimed (as "miscellaneous" items). If you are self- employed, the home office can only reduce your taxable income; it cannot create a loss. For both categories of worker, the room in question has to be used regularly and exclusively for work; a den where you occasionally write software won't cut it.

SALE-LEASEBACK WITH RELATIVE. Suppose the $1 million home you and your spouse bought five years ago in Washington, D.C. has been appraised at $1.8 million, but you're convinced your neighborhood is in for a 20% correction. Sell now and you'll pocket $500,000 of the $800,000 gain tax free, thanks to the exemption on profits from the sales of personal residences. You'll pay a 15% federal tax on the rest.

Sell the property to a wealthy relative you can trust, ideally a parent or grandparent who's got a few million tied up in safe yet stingy Treasury bonds. Then become a tenant. Your rent, which covers your property taxes and insurance but not utilities: less than $6,000 per month.

Have outsiders certify that the sale of the house and the rent are done at market rates so the IRS can't argue that the arrangement is a sweetheart deal designed to disguise a gift from the parents and thus keep their estate taxes low.

BUY IT BACK, POSTCORRECTION. If your parents had planned to pass along an inheritance to you worth more than $2 million, it faces a 45% estate tax on anything above that amount. Continuing the example from above, suppose in three years the housing market has corrected 20% and stabilized.

Your parents can sell the real estate to you now at the diminished value of $1.44 million. The $360,000 loss they've endured on your behalf is not, if the price was fair at the time of the transaction, a taxable gift.

This clever strategy can go wrong, though, notes PricewaterhouseCoopers' Nash. If the housing market surprises you and booms instead of tanks, you may have to buy back your house from your parents at the inflated value. They get stuck paying a 15% tax on the gain in their investment property.

Let's say they sell it on the open market instead of back to you. The $360,000 loss in value on the home is a capital loss because it was a commercial venture and they were landlords, so it can be used to offset gains on your parents' other investments.

FUTURES CONTRACTS. A year and a half ago the Chicago Mercantile Exchange (nyse: CME - news - people ) launched investment instruments that trade based on house price indexes for each of the ten largest U.S. cities. The indexes are managed by Case Shiller Weiss, a Cambridge, Mass. consultancy cofounded by Yale law professor Robert Shiller.

You can sell futures, buy puts or sell calls on this market to hedge losses in the value of your home. Example: You have a $3 million home in Los Angeles, and you're confident that it will shed 30% of its value by November 2009. You can have a broker sell futures contracts on your behalf in Chicago, where traders have lately been betting that the house-price index in Los Angeles will fall only 11.5% over the next two years.

Two-year L.A. futures contracts were trading recently for about $57,000 each. Selling 52 of them would cover a $3 million house. You'll need to put up $120,000 in a margin account to cover your trade, and a round-trip trade on a single contract with a discount broker will cost you $50 in fees.

For you to be right and earn a profit on your contracts, prices in Los Angeles must fall more than 11.5%. Thus a 20% drop in the L.A. housing index, say, would generate a $255,000 profit on your contracts, partly compensating you for the $600,000 loss in value on your home in L.A. A 30% fall in the index would generate $555,000 in profits on your contracts, making up a goodly portion of the $900,000 loss in value on your house.

But if housing prices in L.A. fall less than 11.5%, you'll pay the holder of your contracts out of pocket. So if, say, housing falls only 5% in L.A. in two years, you'll owe $190,000 on your contracts. (Plus you're out $150,000 in value on your home.) You face a high risk with this trade nowadays, explains New York housing derivatives broker Fritz Siebel, who trades the contracts daily for institutional clients, because "the market is already anticipating a correction in L.A."

PARTIAL SALE. A simple way to limit your downside is to sell a chunk of the equity in your house to an investor. Suppose you've paid off your $3 million Chicago home's mortgage and you have firm plans to sell it when you retire in three years and move to Palm Springs. Your neighbor covets your home and has a more optimistic view of its future worth than you do.

Offer to sell him 49% of the equity and the right of first refusal when you want to sell the whole thing. This is a way for him to lock in a partial price now and set himself up for a private (no brokers, no fees) purchase of the rest from you later. If the market surprises you and rises, you'll get only half the appreciation. But you've limited your downside.

The problem is that neighbors like this are hard to come by. A San Francisco firm called Rex & Co., backed by American International Group (nyse: AIG - news - people ), offers an intriguing alternative. Rex will buy 50% of the future change in value in your home over its current fair market value, paying you around 15% of the cash value of your home now (tax free) and taking back those funds plus half the appreciation--above what the house is worth now--when you sell your home after five years.

The deal is unappealing in a rising market but a good hedge when prices tumble. If Rex gives you $180,000 for the future appreciation of your $1.2 million home in Seattle and the house sheds 15% in value in the next five years, you pay back zero. Fees for title, escrow and other closing costs due at the outset are typically covered by Rex.

"It's ingenious," says New York financial adviser Michael Cohn, who has counseled some clients to consider taking the deal. (Most of Cohn's clients don't qualify because they own cooperative apartments in New York, and Rex won't purchase interests in co-ops.) Cohn says a deal with Rex is especially attractive in a falling market for homeowners who plan to sell in not much more than five years.

LEVERAGE UP, RENT OUT. Banks are still lending up to 95% of value to homeowners with the highest credit scores. California's Frank, a Realtor, is taking advantage of that. She has loaded $1.5 million in mortgage debt onto her three properties, eliminating higher-interest loans, and that leaves plenty of equity on the properties even if values sink considerably.

She's been charging $63,600 in yearly rent on two of the houses--she lives in the third--enough to cover the mortgage interest on those two at an aggregate of 6.1%, or $57,600 a year. She has $150,000 in leftover mortgage proceeds in bank certificates of deposit, yielding 5.5%. That provides valuable liquidity if the market gets even worse. "If I need the money, it's safe," she figures. That's more than can be said for the value of a house in Los Angeles these days.

VALUE DROPS

How much will your home values fall? Housing futures contracts data from the Chicago Mercantile Exchange offer a clue. Here's the expected decreases over the next two years, according to folks with money on the line, the traders.

Boston --11.6%

Chicago --6.9%

Denver --13.2%

Los Angeles --11.5%

New York --12.7%

Miami --16.1%

World's Most Expensive Estate

Along Australia's Gold Coast and across the French Riviera, they sit above the beach offering extraordinary views of the sea. In the U.K. they are palaces that humble the Queen's Belgravia mansions.

Others range from landed estates throughout continental Europe to nature preserves in Zambia.

These are some of the world's most expensive properties, and the prices are as unique as the homes. Saudi Prince Bandar bin Sultan's Aspen ski lodge lists for $135 million, while 6,000 miles away, a 64-room Istanbul waterfront mansion asks $100 million.

Dream Homes

Though it hasn't yet been built, Tim Blixseth is asking $155 million for his planned Montana lodge. He says that several members of the Forbes 400 have already expressed interest in what will be a 53,000-square-foot stone-and-wood mansion in the billionaire's members-only Yellowstone Club.

But until Blixseth finishes construction in 2008, this year's top property can be found in Beverly Hills, Calif. For $165 million, a buyer gets a 75,000-square-foot villa once owned by William Randolph Hearst.

$165 million
Beverly Hills, Calif.

Once owned by newspaper magnate William Randolph Hearst, this expansive villa sits on six and a half acres in Beverly Hills.

The home was built in 1926 in the style of a Mediterranean villa and was featured in the 1972 film The Godfather. The compound comprises six buildings, three swimming pools and a movie theater.

A massive 75,000 square feet of living space is spread across three stories. The home boasts 29 bedrooms and 40 bathrooms.

Bran Castle
$140 million
Brasov, Romania

Once inhabited by Romanian prince Vlad the Impaler, the inspiration for Count Dracula, this castle, built in 1212, sits on 20 acres.

he 17-bedroom castle rests on the top of a cliff and offers views across the countryside and surrounding mountains.
The current owner, Dominic von Hapsburg, is running the home as a museum. For more information, contact Baytree Capital.

Tips for buying a house

Top things to know

1. Don't buy if you can't stay put.

If you can't commit to remaining in one place for at least a few years, then owning is probably not for you, at least not yet. With the transaction costs of buying and selling a home, you may end up losing money if you sell any sooner.

2. Start by shoring up your credit.

Since you most likely will need to get a mortgage to buy a house, you must make sure your credit history is as clean as possible. A few months before you start house hunting, get copies of your credit report. Make sure the facts are correct, and fix any problems you discover.

3. Aim for a home you can really afford.

The rule of thumb is that you can buy housing that runs about two-and-one-half times your annual salary. But you'll do better to use one of many calculators available online to get a better handle on how your income, debts, and expenses affect what you can afford.

4. Don't worry if you can't put down the usual 20 percent.

There are a variety of public and private lenders who, if you qualify, offer low-interest mortgages that require a down payment as small as 3 percent of the purchase price.

5. Buy in a district with good schools.

In most areas, this advice applies even if you don't have school-age children. Reason: When it comes time to sell, you'll learn that strong school districts are a top priority for many home buyers, thus helping to boost property values.

6. Get professional help.

Even though the Internet gives buyers unprecedented access to home listings, most new buyers (and many more experienced ones) are better off using a professional agent. Look for an exclusive buyer agent, if possible, who will have your interests at heart and can help you with strategies during the bidding process.

7. Choose carefully between points and rate.

When picking a mortgage, you usually have the option of paying additional points -- a portion of the interest that you pay at closing -- in exchange for a lower interest rate. If you stay in the house for a long time -- say five to seven years or more -- it's usually a better deal to take the points. The lower interest rate will save you more in the long run.

8. Before house hunting, get pre-approved.

Getting pre-approved will you save yourself the grief of looking at houses you can't afford and put you in a better position to make a serious offer when you do find the right house. Not to be confused with pre-qualification, which is based on a cursory review of your finances, pre-approval from a lender is based on your actual income, debt and credit history.

9. Do your homework before bidding.

Your opening bid should be based on the sales trend of similar homes in the neighborhood. So before making it, consider sales of similar homes in the last three months. If homes have recently sold at 5 percent less than the asking price, you should make a bid that's about eight to 10 percent lower than what the seller is asking.

10. Hire a home inspector.

Sure, your lender will require a home appraisal anyway. But that's just the bank's way of determining whether the house is worth the price you've agreed to pay. Separately, you should hire your own home inspector, preferably an engineer with experience in doing home surveys in the area where you are buying. His or her job will be to point out potential problems that could require costly repairs down the road.

Oil Crisis

Most serious analysts do not contest that the peaking of world conventional oil production will occur within the relatively near future, which means sometime between now and 2020. The term “near future” applies to this seemingly long time horizon because preparation may require at least 20 years if the world is to avoid serious economic damage.

More than 60% of the oil used in the USA is imported. In the USA, about 25 barrels of oil per person are consumed each year, and 16 of those barrels are imported. At an average cost of $90 per barrel, imported oil costs the average person in the USA about $1,400 per year. The USA has just 3% of the known world oil reserves, yet we currently use about 25% of the world's annual oil production. In order to end our country's addiction to oil and combat global warming, we must focus on real solutions like increasing the energy efficiency of our homes, increasing vehicle fuel efficiency and increasing our sources of clean, renewable energy.

OIL price will be extremly expensive

Johannesburg - Geopolitical tensions pushed New York crude contracts for November delivery to a record high of US$89 a barrel on Tuesday night.
This prompted market watchers to revise their price forecasts, and some are even predicting a leap to US$300 a barrel should the US invade Iran.
Gary White, who writes a column published by Fleet Street Publications in the UK, said while he doesn't believe that US$300 a barrel was likely in the short- or even medium-term, he said that he does not think that oil is particularly expensive at the moment, despite it being at historic nominal highs.
"I expect the price to rise - we should easily see US$100 a barrel next year... maybe even this year should the White House warmongers hit the red Iran button," White wrote.
He added that if one adjusted for inflation, the oil price peak at the start of 1981 was in excess of US$100. 
"We are still below that figure. But this is not why I believe that the current oil price is cheap," he said. 
To demonstrate, he started with the question: how much crude is there in a barrel of oil? One barrel of oil officially contains 42 US gallons...this converts into 35 imperial gallons...and there are 8 pints in a gallon.
That means one barrel of oil contains 280 pints. With crude futures at, say, about US$87 a barrel that means one pint of crude oil costs 31UScents, or 15pence in real money, White said.
"The truth is that oil is NOT extortionately priced and it is almost inevitable that the price is going to rise," White warned.
He said it was also worth noting that in 1981, when oil hit its peak price because of the Iran-Iraq war, a pint of milk cost 17p - which is more expensive than a pint of crude costs today, and that is without even taking inflation into consideration.
According to US government forecasts, world petroleum liquids consumption is expected to increases from 83 million barrels per day in 2004 to 118 million barrels per day in 2030. 
That's an increase of almost 30% and there are not enough new oil reserves to meet this demand. 
"The price of oil has to increase otherwise it would be betraying the laws of economics," said White. 
"I bet that in 10 year's time after the Asian population has boomed and gentrified and peak oil has hit home hard, you will have to agree with me that oil at US$87 a barrel was cheap, cheap, cheap," he said.

Best- And Worst-Selling Vehicles Of 2007

Best selling

1. Ford F-Series

January to October '07 Sales: 588,952
Vs. January to October '06: Down 12.5%

If you simply take a look at the vast array of models, cab styles, bed lengths and styles and powertrains available for Ford's F-Series, you'll understand why it's been a bestseller for so long. The F-Series has a long-earned reputation for being a durable and long-lasting work truck.

2. Chevrolet Silverado

January to October '07 Sales: 526,575
Vs. January to October '06: Down 2.4%

The Silverado, which was redesigned for 2006, comes in a not-so-distant second place in sales. Like the F-Series, it's available with a wide range of engines, cab and bed styles to suit most work and recreational needs. Some V-8 models come with Active Fuel Management (its engine shifts from eight cylinders to four in situations where extra power is not necessary), which will help sideline worries about pump prices.

Worse Selling

1. Cadillac XLR

January to October '07 sales: 1,525
Vs. January to October '06: down 42.7%

The XLR roadster is a home-grown, elegant grand tourer, based on the Chevy Corvette, and assembled alongside it, yet with luxury and high-tech features to draw sales from buyers who might consider the Mercedes-Benz SL or BMW 6-Series. Unfortunately, the XLR isn't coming close to those models in sales, especially after this year's decline.

2. Mazda B-Series

January to October '07 sales: 2,363

Vs. January to October '06: Down 35.3%

The B-Series pickup, essentially a Mazda-badged version of the Ranger, one of Ford's most outdated products, doesn't necessarily keep with the "Zoom Zoom" image of the rest of the brand's car and SUV lines. Enough said.

Tips for Used Car Buyers

1 Decide how much you can afford
nclude the cost of insurance, MOT, road tax, petrol, repairs and servicing. Bear in mind that older prestige and sports cars may look cheap to buy, but that the maintenance, repair, insurance and fuel costs may be a lot higher. Ask dealers for estimates of typical repairs to get an idea. Don't rush into a decision - shop around, and compare prices from different sources.

2) View the car in clear daylight

Dark or wet conditions will easily hide a car's faults. Take a friend or relative as a second opinion (two pairs of eyes are better than one). Do not arrange a seller at a service station or lay-by – you need a place where you can safely make a thorough inspection. Don’t let the seller bring the car to you: you want to see where he (or she) is based and get a better idea of the person’s trustworthiness. Why would they not want you to come to them? In the case of private sellers, check that the seller's address is the same as that recorded in the logbook and seek additional reassurance that the seller lives where they claim to - are they in the 'phone book'?

3.Check all documentation

Make sure all the documentation you would expect to find is available. This will normally include the Registration Document or log book (V5), service and insurance records, MoT certificate (on vehicles over 3 years old) and receipts for repairs, maintenance, etc – as well as receipt or invoice that shows that the seller owns the car.

Then make sure everything tallies: check VIN numbers, registrations, dates, names and addresses and any other details you can cross check. Also investigate the keys - are they all there? Are there too many? Does the driver's door or boot need a different key from the rest of the car?. These clues may point to prior damage or theft – though they may be a perfectly innocent mechanical failure in the locks, too.

4) Consider an independent inspection

Once you’re satisfied the vehicle is probably in order, this is the next step. An expert from an organisation such as the RAC or Green Flag will help to identify potentially expensive mechanical problems and can also spot the signs of major accident repair. The results will either give you greater confidence that the vehicle is a good buy, tell you to walk away, or provide the basis for negotiating on price to take into account necessary rectification work. If the seller won't allow an inspection, that tells you something too!

5) Has it had an accident repair?

Over 5 million vehicles require bodywork each year. Given that there are about 24m cars on the road, this means we all have a 1 in 5 chance that our car will be accident damaged in any one year. Most damage is not disastrous, but the HPI Check will tell you if a vehicle has been so badly damaged that an insurer has declared it a total loss. But even where a car has not been "written off", don't assume it is free from major accident damage. But major accident damage can be acceptably repaired – and the HPI register will help tell you about how repairs have been certified.

6) Note details from the registration document

While the V5 is not proof of ownership, it does contain a lot of useful information. You can contact the previous keeper to confirm the car's history. Also you can compare keeper change dates with the result of the HPI Check to ensure you're not looking at a document which has been forged or altered. Also, use the service history to do a bit of detective work. What do the dates and mileages tell you about the car's past life? Is the "full service history" really full?

Buying the suitable car

Have you ever dreamed of owning your own car? Imagine driving down a tree-lined street with the windows down on a sunny day, a warm rush of air streaming through your hair... OK, snap out of your reverie. Before you start mapping out the route to the nearest beach, you just might want to learn some valuable car-buying tips.

Buying a car, whether it's a first-time purchase or not, can seem like a daunting task. You've probably seen your share of car commercials on TV and recall hearing phrases like "down payment" and "APR." Although some of the terminology may seem confusing, once you break it down, buying a car is pretty straightforward. There is certainly a lot of information you need to understand before you run off to your local dealership. But once you know what the acronyms mean and how financing works, you'll be ready to get the best possible price on the car you've chosen.

The first thing you must decide before you begin your automobile research is whether you want a new car or a used car. Of course, there are benefits and drawbacks on both sides. If you decide to buy a used car, there are several things you need to keep in mind.

First of all, there are more than 2 million car accidents annually and chances are if you are in the market for a used car, you will come in contact with at least one automobile that was in an accident. The most important thing about buying a used car is that you know everything about the history of the car, including:

• the number of previous owners
• if the car was ever involved in an accident
• any previous mechanical problems
• the maintenance history of the car

One of the largest benefits of buying a used car is that you can often get a great deal and in many cases, the car you buy may even be relatively new. Successful used car buyers often are just as happy with their used car as new car buyers are with a new vehicle. But remember, the most common car-buying horror stories do involve the purchase of used cars. When you have a good idea of what kind of car best fits your needs and budget, you can begin your research on used cars.

Finding a Used Car

There are several places to locate and buy a used car:

• a used car dealership
• a superstore dealership that specializes in used cars -- like CarMax or Hertz
• many new car dealerships also sell used cars
• used car Web sites like ConsumerGuide.com
• online and print classifieds

Keep in mind that classified listings are used by both dealers and individuals to sell used cars. Some dealers even post their used cars on used car Web sites. Person-to-person transactions through people you know, or via online and print classifieds can be a good option if you want to avoid a dealership. According to Car Buying Tips.com, no matter what option you go with, if you do decide to purchase a used car, there are four tasks that will increase your odds of success:

1. Have a mechanic put the car up on a lift for a full inspection and to check for damage -- anything that might indicate a previous accident or possibly flood damage.

2. Run a Vehicle History Report to get a full history of the car. You can get a Vehicle History Report at CARFAX.com. It will include everything you need to know about the car including:
   • if it was ever salvaged, stolen or recalled
   • the number of previous owners
   • if it ever failed inspection
   • if someone tried to create a fraudulent odometer reading

3. Never sign an "As Is" statement. Many used car dealers will mix that in with the other paperwork you'll be asked to sign. As with anything that requires a signature, READ BEFORE YOU SIGN. You should have at least 30 days to make sure the car is in good condition. If you sign an "As Is" statement, once you drive the vehicle off the lot, anything that goes wrong is your problem.

4. Have your own financing and loan approvals ready before you go to buy the car. (This can also be good if you're planning on making a new car purchase.)

If you follow these simple instructions, your used car-buying experience should go smoothly. Remember that buying a used car from a dealership is similar to buying a new car from a dealership. You want to be armed with all the relevant information before you buy any car, new or used.

10 Tips To Avoid Car Accident

1. Avoid the "fast lane." By using the center or right lane on multilane roads, you have more "escape routes" should a problem suddenly arise that requires you to quickly change lanes or pull onto the shoulder. Most highway accidents occur in the left lane. Furthermore, you are more conspicuous to highway patrol if you are in the "fast lane."

2. Keep your eyes scanning the area ahead. Don't just eyeball the car in front of you but watch the traffic in front of that car as well. This increases your chance of seeing a problem while still having enough time to react to it, and decreases your chance of rear-ending the vehicle in front of you should they make a sudden stop.

3. Beware of blind spots. Yes, adjust your side mirrors and rearview mirror to provide you with one near seamless panoramic scene of the view behind you, but don't rely solely on them. Actually turn to look directly into the lanes beside you to avoid missing something left undetected by your mirrors. Also consider the blind spots for other drivers around you, especially truckers, and try to minimize the amount of time you spend in them.

4. Drive with your hands in the 9 and 3 o'clock position. Instead of the lazy, typical way people drive with one hand at 12 o'clock or both hands resting at the bottom of the steering wheel, this recommended position facilitates maximum vehicle control when you're forced into quick maneuvering to avoid a potential car accident.

5. Get racecar driver control of the wheel. Another trick to maintain control of the wheel is to move your seat close enough to the steering wheel so that your wrist can rest on the top of the wheel with your arm outstretched and your back against the seat. This not only ensures your arms won't easily fatigue but they'll be in the optimum position for some last-minute evasive maneuvers.

6. Judge a driver by his/her car's condition. If a car's condition indicates an inattentive owner because of body damage or dirty windows, it could easily suggest an inattentive driver, too. Also, drifting in the lane often identifies a tired, drunk or cell phone-preoccupied driver — so you should get away from that person.

7. Know your car's limits. After getting behind the wheel of everything from minivans to exotic sport cars, our editors know the performance limits of the cars they drive. Pay attention to how your particular vehicle reacts in certain situations — if the vehicle leans a lot when you're rounding corners, this means that wrenching the wheel at high speeds to avoid an accident will be a scary proposition. It's also key to be familiar with the limits of your car's brakes and tires. How long does it take to stop when you apply maximum pressure? How much grip do your tires have? If you replaced your car's stock tires with a cheap set, chances are you've reduced its braking and handling capability.


8. Keep your car in good shape. We stick to the manufacturer's recommended maintenance schedule for our long-term cars. This ensures that they'll accelerate, stop and steer when we need them to. Reconsider the wisdom of "getting another 1,000 miles out of old tires" — if you encounter an unexpectedly slick road, you may find yourself rubbing up against the guard rail.

9. The nighttime is not the right time. Some people like to travel at night to avoid traffic, but with it comes certain hazards. In addition to your own increased fatigue and decreased field of vision, you need to be aware of joyriding teens and drivers who may be tired or drunk. Drive extra defensively around the witching hour, after midnight when some people are leaving bars, parties or sports arenas. And for goodness' sake, don't drive down a dark road with burned-out headlights or taillights.

10. Learn how to drive a race car. It may sound like a frivolous expense, but going to a high-performance driving school is one of the best ways to improve your skill as a driver. Here you'll learn what it feels like to drive a car "at the limits" and have an opportunity to practice accident avoidance maneuvers and skid recovery in a safe, controlled environment. Understanding how to make your car do what you want it to do in emergency situations could save your life.