Are you in the market for a vehicle but cringe when you start thinking of how much cash you will have to shell out to purchase one?  What if you could cut the cost of the purchase of a car by well over half?  What if you could also reduce your maintenance and insurance expenses?  In today’s economy, this is a great option, but how can it be done?

The first thing you need to consider is how important luxury and style is compared to saving money.  Most people today are more concerned with the bottom line than looking stylish and this is a good thing. 

Did you know you can actually purchase a used vehicle for under $1,000?  You probably think that to do so you will get something that will fall apart immediately.  However, this is not the case as proven by entrepreneur Chris Hedgecock.  He purchased a vehicle for under $900 at Cars for a Grand, put a little bit more money into maintenance then traveled across the country.  The details of his journey can be found on his highly entertaining video blog and in various news reports.

If he can do it, so can you.  However, there are some tips you should adhere to so you don’t end up with a lemon.  Instead, by following a few simple techniques you can find a reliable yet inexpensive vehicle.

First, get to know your potential vehicle by purchasing a complete vehicle history report for just $15.  The report will show you everyone's who owned the car and what they have done with it, including title history, accident reports, insurance claims and more.  Cars this cheap probably won't have a clean history, but it's an easy way to avoid a costly surprise.

Next, make sure you have a little bit of money that is budgeted for minor repairs, maintenance and upgrades to your new purchase.  Oil changes, spark plugs and a general cleaning will ensure your vehicle is in prime operating condition and will last a long time. 

Don’t bother with full coverage insurance.  Make sure you get an appropriate amount of liability coverage and skip collision, comprehensive and the rest.  If you are spending more on annual insurance premiums than the value of the car, this is not a wise investment.  However, ponying up $50 for a roadside assistance program like AAA could be money very well spent.

Finally, etermine the maximum amount of money you will spend on the vehicle for the life of the car.  Once you exceed this amount, it is time to look for a new one.  Most cars will need some significant repair at some point.  If this repair will put you over your vehicle budget, don’t bother with it.  Instead, sell the car as is and get another one.