Where to Shop for Your Next Used Car

Almost all franchised dealers have a used-car department, which tends to feature late-model vehicles (2 or 3 years old) that often carry the remainder of the original warranty or are certified pre-owned with an extended warranty. Many dealers won’t bother with cars more than 4 or 5 years old, or ones that are difficult to sell, so their stock is fairly up to date. 

These are dealerships with huge lots and scores of cars to sell. They have numerous brands, making it easy to compare cars. CarMax is a large chain that sells used cars at no-haggle prices. Services like Carvana and Vroom are similar but put the whole process online and can deliver vehicles directly to buyers, who never have to go to a dealer. Delivery services often swap a limited-time offer of a money-back guarantee for the opportunity to test drive and inspect a vehicle.

These are apt to handle any make, and the vehicles can run the gamut from the almost-new to the junker-in-waiting. Some dealers specialize in late-model cars and are affiliated with new-car franchises. If the dealership has been around for a long time and has a good reputation locally, that’s a good sign. 

Many used-car dealerships can arrange financing for you. Some of these loans are handled by traditional banks and lenders, but other independent dealers may specialize in working with customers with a shaky credit history. Such financing may carry a very high interest rate, extra fees, or stiff penalties. Be careful. Whether the financing is easy to arrange or not, don’t sign something you don’t understand or buy a car you know you can’t afford, even if you’re approved for a loan.

Some mechanics have a sideline business selling used cars. They might not have many cars to sell, but prices are often better than those you’ll find at a dealership. An added benefit is that the station may have serviced the car throughout its life, giving its mechanics knowledge of the car’s repair history. Still, take it elsewhere to have an impartial inspection performed.

You can usually get the best price if you buy a car directly from its previous owner. A private party doesn’t have to cover the overhead of a business and frequently just wants to get rid of the vehicle. But an owner might not be aware of trouble signs that a dealership or service station would recognize. Additionally, you’ll have to have financing in place before you buy. 

Sometimes “private sellers” fix up and sell rebuilt vehicles with salvage titles. These rebuilt wrecks are damaged cars that they fix on the cheap. Beware of a seller who seems unaware of a vehicle’s history or who is selling it for a “friend.” Always have a vehicle thoroughly inspected by an independent mechanic.

The internet provides an easy way to find out prices for various models for sale in your area from a variety of sources, including dealers, superstores, and private owners. You may find, however, that many offerings are located inconveniently far from home or that listings are erroneous or incomplete. 

Used-car websites typically ask you to fill in the make and model in which you’re interested, your price range, and the region where you’d like to shop.

Try to limit your search to locations that are easy to reach. You’ll get a list of vehicles that fit your criteria, along with a way to contact the seller. Because many sellers are car dealerships, most sites provide direct links to the dealership websites. Many services also let you place an ad for selling your old car. 

Facebook Marketplace and Craigslist are good places to find cars owned by individuals, especially older or high-mileage vehicles. 

Online auctions are another route. The auction system is a little different from standard price negotiation. On eBay, once you enter a bid it’s like signing a contract to buy. If there is a reserve, it must be met or the auction will expire without a transaction. Though an auction gives you an opportunity to snap up a bargain, it also means you have committed to the deal, unless it turns out that the seller has made some serious misrepresentation. You can arrange to have the vehicle inspected through a paid service on the site. 

Federal, state, and local government agencies use online auction sites to dispose of surplus vehicles. These vehicles are usually well-maintained but often lack desirable options. Rental car companies also use auction sites to sell older models from their fleets, in addition to their own dedicated used-car sites.

Problems we’ve noticed with used-car websites include scam ads meant to trick you into giving out personal information or money for a deal that’s “too good to be true.” Some sellers are slow to update their offerings as inventories change, making it a challenge to even find available common models. Always make sure the vehicle you’re looking for is still available before visiting any seller, whether it’s a dealership or a private party.

No matter how much of the transaction you conduct by phone or email, it’s important to inspect the vehicle in person and take it for a test drive before you buy.