What Are the Best Places to Buy Used Cars?

Where should you look to buy used cars? Should you contact independent sellers through social media sites, or explore more traditional sales locations?

Buying a pre-owned vehicle comes with its own set of challenges. The place you choose for your purchase can be just as important as the vehicle you want to buy. If you’re looking for one of those rare models that’s hard to find, you’ll be limited to wherever that vehicle is available to you, but when you’re looking for a common vehicle, there are several options open to you.

The most common place to buy used cars is at a dealership

Even if your search for a pre-owned vehicle begins online, it could start online with the dealership site. You could begin by looking for a broad search of the type of vehicle you want, but eventually, that search brings you down to the specific model or a few different models that you want to consider. Dealerships usually have the largest inventory, which makes them a great place to buy your next vehicle.

Pros

• In-house financing
• Certified pre-owned models

Cons

• Higher car prices
• Brand limitations

Some dealerships have both new and used cars, which means you might find mostly pre-owned Toyotas at a Toyota dealership. This is fine if you know what brand you want. Dealerships also have the capability to offer extended warranties, good financing deals, and should have some of the best used vehicles in the market. If the dealership is part of a larger group of dealers, the buying power ensures they get the best pre-owned models from wholesalers, as lease returns, and from trades. This makes a typical dealership one of the best places to buy used cars.

Should you visit independent used car dealers?

You see these locations up and down the main streets of most cities. Independent used car dealers aren’t affiliated with any particular automotive brand, which means you’ll find only used cars on the lot. Typically, these locations have lower operating costs because they don’t need a large lot for new vehicles. Some of these dealers are small enough that the office is nothing more than a trailer; don’t allow that to turn you away; there can be some great cars at these locations.

Pros

• Prices are typically lower than at branded dealers

Cons

• Sales staff might not be familiar with models
• Fewer financing options than branded dealers

These dealers tend to purchase their inventory at auction, which allows them to have several different cars with various mileage levels on them. If you find the vehicle you want at one of these dealers, you’ll need to check it thoroughly. Independent dealers offer smaller inventory numbers and can be a great place to go when you want to buy used cars, but you have to be aware of the challenges of these locations.

Should you visit used-car retailers?

What is a used-car retailer? These are large car lots that have hundreds of cars to choose from. The most popular used-car retailer is probably CarMax, but there are others. These locations often operate similarly to new car dealers without the branded relationship with an automaker. These large used car locations have higher operating costs than those small dealers with office trailers, but you could find these larger locations to be more appealing when you want the best places to buy used cars.

Pros

• New car dealer experience
• In-house financing
• No-haggle pricing
• Some warranties offered

Cons

• Extra costs translates to higher prices
• Haggling not allowed

If you want a large variety of used cars without the branded lean, a used-car retailer can be the best option for you. These locations can often provide warranties, and they give you a buying experience that’s similar to purchasing from a branded dealership. The most important drawback is the higher price you’ll pay for the vehicle you buy.

Does it make sense to buy from a private seller?

In today’s world, most private sellers are those independent people you contact through social media sites. Although dealerships can use sites like Facebook Marketplace and Twitter to boost sales and offer their inventory, most of the sellers on these sites are private sellers that have one vehicle to sell. A few might have more than one car to sell you, but most of the time, these sellers are trying to sell their old cars for various reasons.

Pros

• Low prices
• Flexible haggling

Cons

• You’re on your own for financing
• You must do the paperwork and verify everything yourself

When you deal with a private seller, you’re responsible for ensuring the vehicle is right, matches the title, and can be sold. The greatest benefits to working with a private seller are the ability to haggle for a lower price, and this is often how you find those rare cars that aren’t heading to dealer lots. Once you buy the vehicle from an individual, it’s your problem, which makes this one of the most challenging ways to buy used cars.

Should you buy a car online?

For those of us who have bought several cars using traditional methods, buying a used vehicle online seems scary and comes with feelings of anxiety. For others, who have purchased many products online, this could be business as usual. If you buy a car this way, some companies have set up delivery methods to bring that car to you. Of course, this mostly removes the opportunity to test drive the vehicle and test it before you buy.

Pros

• Wide variety of listings to find the right car at the right price
• Easy shopping from home

Cons

• Hard to examine the car online, only seeing photos and videos the seller wants you to see
• Still dealing with private sellers in many cases

When buying a car online from a private seller, you’re responsible for paying the sales tax in the state you buy and your state. Also, you’re responsible for getting this car from where it is to your home. This is a good way to buy a rare car that’s exactly what you want to buy, but it can be challenging.

What’s the verdict?

The most common and sure way to buy used cars is to visit a traditional dealership, but there are several other great ways to purchase a pre-owned car. Each way to buy comes with its ups and downs. Find the right way for you and buy the vehicle that you want to drive.