WHERE TO LOOK - The next step is to determine how much you are willing or able to spend on a car. Knowing what you can afford to pay before shopping will keep you from over spending on a car you really can't afford. A used car is a major purchase and requires comparison shopping for price and value to find the best deal. There are many sources for finding a good used car including new car dealerships, used car lots, rental car lots, leasing companies and private individuals. New car dealers may be the best source for finding high quality late model cars. These dealers only keep the best cars received as trade-in and have usually performed a thorough inspection of the car. You may want to buy from a dealer who handles the brand that interests you most as a used car. The dealership will have a full service department, a well stocked supply of parts and may even offer a parts and labor warranty. Rental returns are also offered by dealers and used car lots and are often an excellent value. In addition, rental and leasing agencies periodically sell cars from their fleet on their own lot. Rental returns are typically less than two years old and tend to come well equipped with good warranties and a history of regular maintenance. You will sometimes find some great bargains in unexpected places. For instance, check domestic dealers for used imports or visit luxury dealers for mid-priced sedans. No matter where you buy a car, find a friendly sales person you're comfortable with and make sure that person is knowledgeable about cars. Many used cars are purchased from private parties. Keep in mind, however, that a car bought from an individual is not necessarily a better deal. In many cases, buyers end up overpaying because they somehow assume they are getting a better price buying from an individual seller. One good thing about private owners is that you get to meet them face to face and inquire about the history of the car. Who was the principle driver, why is the car being sold, does it have any mechanical problems, are there any maintenance records which you can review are questions you may ask. Of course, when you buy a car from a private seller, you usually don't receive any kind of warranty. You'll also have to obtain your own financing or pay cash for the car.
