Navigating the used car market right now can feel a lot like navigating the online dating scene: hopeless, disheartening and out of control. (Seriously, what’s up with all the fish pictures, guys? Nobody’s taking the bait.) The good news is that there are plenty of decent fish (and second-hand cars) in a sea full of shops sell delicious. You have to know where to look.
I’m here to help you find the best place to buy a used car—and know what to look for—so you can get the best deal on a new (for you) ride. Let’s get there!
Where is the Best Place to Buy a Used Car?
The best place to buy a used car. . . is the one that will give you the best deal. (Shocker, right?) But you also don’t want to get ripped off and have a car that will fall apart the moment you drive it off the lot (think Danny DeVito’s character from Matilda).
I wish I could direct you to a magical place less than 10 minutes away with cheap rides that fit exactly what you are looking for. But the truth is, where to buy a used car depends on your budget, the type of car you’re looking for, and the type of dealer you’re dealing with.
To help guide you in the right direction, I’ve broken down the best places to buy used cars into three main categories: car dealerships, online retailers and private sellers—along with the pros and cons of each.
Best Used Car Dealers
Franchise Dealerships
Many franchise dealers carry used cars from all kinds of brands, but they usually specialize in a particular brand. So, if you’re looking for a specific make (Ford, Subaru, Tesla, etc.), these can be good places to look at a bunch of different models and get a feel for what you like. Franchised dealerships also sell certified pre-owned vehicles – which is just a fancy name for used cars that have been inspected and may still be under warranty.
But the bigger the dealer, the more you will have to pay in dealer costs. And one thing you can count on with dealers: They’re going to push you to finance. Everytime. That’s how they make the most money. But hear me loud and clear: A car payment always costs you more.
And although you come to the dealership looking for a use car, they’ll probably try to talk you into getting the latest new model instead (you know, for “safety reasons” or because you “deserve” it). But unless you’re a millionaire, a used car is still a better deal than a new one.
Bottom line: If you’re going to do business with a dealer, you need to be prepared to stand your ground and negotiate the best car price.
Advantages: Specializing in a specific brand; carry pre-owned certified vehicles
Disadvantages: Higher prices; pushes you to finance and buy new
Independent Used Car Dealers
When you think of used car dealers, you probably picture your local independent dealer with the corny (but incredibly catchy) ad. Here at Kamel Kars, we spit out low prices that won’t break the bank – or your back! (Admit it, that’s a pretty good ad.)
With a used car dealer, you can avoid the temptation of a brand new car staring you down as you shop. And you may have more makes and models to choose from than you would at a franchised dealership. Also, they usually have lower costs than the larger dealerships.
But a seller is a seller. And used car dealers have plenty of tricks to get you to spend more. So, put on your bargaining hat (be it real or metaphorical). You’ll also want to get a thorough inspection and vehicle history report (VHR) to make sure you’re not buying a dud.
Advantages: Lower costs than a franchise dealer; different types of cars to choose from
Con: Had to go back and forth with seller
National Used Car Dealers
- CarMax
- Autonomy
- Drive Time
These companies are basically independent car dealers — but on a much larger scale. With numerous locations across the country, these used car supermarkets have huge inventories to explore.
The main advantage of these dealerships is the easy buying process. And in most cases, the price you see is the price you pay. But that also means they probably aren’t going to bargain with you. Also, large companies like these are expensive to operate – so don’t be surprised if the price you pay is a bit higher to make up for extra costs on their own.
Advantages: Huge inventory; hassle free process
Disadvantages: Dealer costs may be higher; no price negotiation
Best Used Car Websites
- Carfax
- cars.com
- Edmunds
- CarGurus
- Caravan
- Vroom
- Motors eBay
Online dealers make it super easy to compare multiple cars and find the best price from the comfort of your couch. And if you love the thrill of an auction, sites like eBay Motors can help you snag a specific car at a good price. (Don’t get so caught up in the offer that you end up buying a car for more than it’s worth.)
But just because you’re buying a car online, it doesn’t guarantee you’re getting a better deal. And since you’re relying solely on the seller’s description, you won’t know if the car has barbecue sauce stains on the front seat or makes a sound like a pterodactyl every time you turn to the left. My advice is to use car websites to help you narrow down your options – then go look at the car in person before you commit to anything.
And remember, if you end up buying a car out of state and don’t ship it, you usually need a temporary registration from that state to drive it in back home That means you will have to deal with two different Departments of Motor Vehicles (ie double fun one DMV visit!).
Advantages: Easy to find cars and compare prices; can shop from anywhere
Disadvantages: It may not only capture problems you can see in person; extra hoops to jump through if you get a car out-of-state
Private Used Car Dealers
With a private seller, you cut out the dealer middleman (plus the dealer’s costs), so you can usually get a car for a much lower price. And since you’re paying in cash and not financing, you may be able to talk the seller down to an even lower price.
You can find private sellers on:
- Craigslist
- Facebook Market
- Autotrader
Or look for ads in the newspaper (if that’s still your thing). You can also ask your friends and family if they or someone they know is looking to sell.
Remember, though: Joe Schmo selling a truck on Facebook is not held to the same standards as a dealership. So, you have to be on the lookout for any shady scams and do a little more research. Make sure you ask the right questions, bring a friend, inspect the car, and confirm the title is clean. If everything checks out, all you have to do is give them the cash or cashier’s check, get the seller to sign the title, and you’re good to go!
Advantages: lower prices; simple process; able to negotiate
Con: Some private sellers are shady
Where Does the Saint David Community Buy Used Cars?
As you can see, there is no one right place to buy a used car. Each has its own advantages and disadvantages. But here’s what The Ramsey Baby Steps Community on Facebook has to say about buying a used car:
“I’d rather buy from a reputable dealer (used or not) because there are some better warranties.” —Steven T.
“Private sale. My reasoning is that I can usually get more maintenance history on them than a dealer would give me. . . . In general, you can also get a better deal on private sales because an individual is not worried about the overhead that a business would incur. They want to get rid of a vehicle and you might be the one to make it happen.” — Jarrod B.
“Overall, I’ve had better luck buying 2 to 4 year old cars from dealerships. Many of the private sales I have looked at were priced similar to dealerships and they were all still owed on them. I don’t buy a used car where I don’t walk away with the title signed.” —Martin L.
“We went to the dealerships looking for an SUV. Everything was $30-40k. We hit FB Marketplace and bought a used one owner 10 year old Tahoe for $10k. No dealer fees. No fuss.” —Roderick H.
“It really depends on why I’m buying a new car and for whom. My 16 year old drives cars from private auctions and a used car dealer. I paid for the Carfax for the one from the dealership, and it was great. Both cars were under $5,000. My husband and adult son bought used cars (one certified) from a large, reputable dealer. Those two cars were $20,000.” — Heather G.
The best Way to Buy a Used Car
There may not be one place for everyone to buy a used car. But there is a best way to buy one. Here are some things you should always do when shopping for a used car – no matter where you buy from.
Pay in Cash
I’ve said it before, and I’ll say it again (and again and again): Always buy a car you can pay for in cash. If you can’t afford to pay upfront and in full, you can’t afford it. You need to keep saving or look for a more affordable car. A car payment steals your paycheck and your peace of mind.
So, instead of talking about a car loan with terms that only benefit the dealer, limit your search to used cars that you could write a check for. today. And avoid any dealership that won’t sell you a car unless you finance. Since the best a deal is the one where you drive away in a paid for car, with no payments weighing you down.
Don’t Rush Into It
Buying a car at the right time is just as important as where you buy it from. A car is one of the biggest purchases you’ll make, so you don’t want to rush into a decision that can literally destroy your money. Take time to do your research.
Also, if you need to spend the next six months saving up for a car you can afford, that’s fine! Don’t let any salesperson pressure you into getting a bad deal, you’ll regret it the moment they hand you the keys.
Stick to Your Budget
Your budget should determine what kind of car you get – not a car dealer or your need to impress your friends. You also need to make sure you’ll have enough to pay sales tax, DMV fees, plus car insurance, auto repairs and gas every month. Beyond those costs, it’s hard to know how much car you can afford if you have no idea what’s going on with your money on a daily basis.