Bought used macbook air and do not have previous users password. how do i change admin settings without that?

I have purchased a used Macbook Air and am trying to clear previous user account data from system. Previous user gave me his password but it does not work and he has no other ideas. If/can I reboot somehow and not loose the programs that he had installed?
System is MacBook Air 11-inch Mid 2011
1.6 Ghz Intel Core i5 processor
Memory 2GB
Graphics Intel HD 3000 288 MB
Software OS X 10.8.3 (12D78)

You have to erase the drive and reinstall under your ID etc.
Previous user gave me his password but it does not work and he has no other ideas. If/can I reboot somehow and not loose the programs that he had installed?
Unless you bought those programs under your account they are not yours and you have no rights to use them, you will also be unable to upgrade or reinstall them.

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