Car buyers looking to save money can turn to preowned cars when they first start shopping around. Preowned cars aren’t what they were a few generations ago. Many are backed by similar warranties as new vehicles, and can be very reliable and affordable options.

According to U.S. News and World Report, the average transaction price for a new vehicle is around $50,000. For many, that kind of expense is simply out of reach. The average price for a preowned vehicle is about $27,000, marking a considerable difference. The majority of used vehicles available at dealerships are lease turn-ins. Car and Driver says the average lease term for a vehicle is 36 months.

And most lease terms limit the number of miles a driver can put on the vehicle to anywhere from 10,000 to 15,000 per year. Buyers who are purchasing preowned vehicles that are lease turn-ins may find young vehicles that have low mileage for relatively affordable prices.

It is important to have a strategy in place when buying a preowned vehicle. These tips can help customers navigate the ins and outs of the preowned market.

— Establish your budget. As with any other major purchase, determine just how much you can afford to spend. Edmunds says it’s a good idea to cap your car payment at 10% of your take-home pay. If you are on a tighter budget and anticipate extra work to get the used vehicle road-ready, reduce that percentage even more.

— Consider more than one brand. Although you may have a brand preference, be flexible. Certain brands such as Honda, Toyota and Subaru may cost more because they are fan favorites. Expand the possibilities to find a vehicle with the features you desire that also comes in on budget.

— Compare prices. Prices may be affected by where the vehicle is located. Typically you’ll spend the least if you buy from a private seller. Dealerships who offer certified preowned vehicles often command the most money, but these vehicles tend to be backed by certifications and limited warranties.

— Get a copy of the vehicle history report. A vehicle history report can tell you a lot about the vehicle. Kelley Blue Book says a VHR can list how many people owned the vehicle; indicate if the vehicle has been involved in an accident; reveal if the mileage shown on the odometer is accurate; if the vehicle has been kept up-to-date with inspections; and if the vehicle is considered a lemon. A VHR will not indicate the overall condition or wear-and-tear level.

— Test drive with a mechanic. If possible, bring a mechanic along on a test drive or when you first check out the vehicle. He or she can provide expertise and help you avoid a potential misstep when buying.

— Gauge comfort and looks. Just as you would before purchasing a new vehicle, determine if a preowned car or truck fits your style, needs and comfort levels.

Buying a preowned vehicle takes a little extra work, but it can be worth it in cost savings.