I certainly wouldn't recommend using that particular buffer. You can polish cars and get rid of scratches with random orbital machines, but what you have there is not something that I would ever use.
If you want my advice, spend the $200 bucks on the proper polisher, pads, and products and save yourself some grief. A Porter Cable 7424XP dual action polisher will run you about a hundred bucks shipped. Pads are anywhere between 8 and 12 bucks apiece. Polishes are generally between $12 and $20 bucks a bottle. If you have $200 and want to spend it on the stuff you need to maintain your car's appearance, then let me know and I'll put together a list for you. I'm pretty sure that list exists somewhere on this forum already. Cutting corners is never worth it. You end up stepping over dollars to pick up pennies when you care for your paint that way.