Many financial experts emphasize that purchasing an affordable used car and holding onto it for years is one of the most cost-effective strategies for car ownership.
However, choosing the wrong vehicle or buying from an unreliable source could result in substantial repair expenses or high financing costs.
As of 2023, finding a truly “cheap” used car has become increasingly difficult. The ongoing shortage of used vehicles has driven prices to record highs, making it more important than ever to choose the right retailer.
A poor decision could be more costly than ever before. Additionally, you may need to expand your search, whether by looking online or exploring multiple dealerships.
It’s crucial to be aware that some used cars for sale may be subject to recalls that haven’t been addressed.
While it’s not illegal for sellers to offer these vehicles, you should always check the vehicle identification number (VIN) on the National Highway Traffic Safety Administration’s recall site. This will ensure you’re aware of any necessary recall repairs before purchasing the car.
To help guide you through the process, here’s a list of some of the best places to buy a used car. Each option has its advantages and drawbacks, so depending on what you prioritize be it price, selection, or warranty different retailers may suit your needs.
Certified Pre-Owned at a Dealership
Purchasing a certified pre-owned (CPO) vehicle is a reliable way to get a well-maintained used car, SUV, or truck. These vehicles, sold exclusively at brand-affiliated dealerships, undergo thorough inspections and are refurbished using factory-approved parts.
They also come with the most comprehensive warranties. For instance, General Motors provides a one-year/12,000-mile bumper-to-bumper warranty and a five-year/100,000-mile powertrain warranty on all its CPO cars.
You can use Edmunds’ certified program comparison tool to evaluate the differences in coverage. However, while CPO vehicles come with warranties, they aren’t brand-new. Reading “Certified Pre-Owned Cars: A Reality Check” will help set appropriate expectations.
CPO cars do come at a premium price. Edmunds data indicates that consumers typically pay 6% to 8% more for a three-year-old CPO vehicle compared to a non-certified counterpart.
If warranty coverage is a top priority, another option is finding a private-sale vehicle that is still within its original manufacturer warranty.
Non-Certified at a Dealership
The majority of used cars available at dealerships fall into this category.
While these vehicles don’t receive the same rigorous inspection as CPO cars, they are still checked over, and significant issues are typically resolved before they are put on sale. Dealerships receive trade-ins daily, making it easy to find a variety of options.
Most dealerships provide access to free Carfax or AutoCheck reports, allowing buyers to review a vehicle’s history before making a decision.
Additionally, whether you’re considering a certified or non-certified car, test drives are generally available, just as they are for new vehicles.
Also Read: Best Car Insurance Companies for Affordable Coverage
Independent Dealerships
Unlike franchise dealerships, independent dealerships are not affiliated with specific automakers.
Their inventory can vary significantly, depending on whether you visit a small corner lot or a large dealership with a dedicated service department.
The quality of vehicles and service also varies, so it’s wise to check online reviews on platforms like Google and Yelp, as well as the Better Business Bureau.
Independent dealerships can be a good option if you’re searching for a budget-friendly used car. Additionally, they tend to offer financing for buyers with poor credit.
However, interest rates at independent dealers may be less competitive compared to larger franchise dealerships.
Some independent dealers specialize in particular types of cars, such as European luxury vehicles or classic models. If you have a specific type of car in mind, this can make your search easier.
When buying from an independent dealership, always run a vehicle history report and use caution. You can also refer to our “Field Guide to Independent Used-Car Lots” for further insights.
Edmunds
Edmunds offers used car listings from a wide range of dealerships, including both CPO and non-CPO options. The platform allows nationwide searches, price evaluations, and tracking of how long a car has been listed for sale.
While Edmunds does not sell vehicles directly, it helps buyers connect with dealerships to view cars in person and complete purchases.
CarMax
Although technically an independent used car dealership, CarMax is the largest retailer of used cars in the U.S., with over 200 locations nationwide. It offers a diverse selection of late-model vehicles across various body styles.
CarMax follows a no-haggle pricing model, meaning all vehicles have fixed prices. Its salespeople are paid on a flat commission, ensuring they prioritize customer needs rather than pushing higher-priced cars.
One of CarMax’s standout features is its 24-hour test drive policy, which allows buyers to take a car home to assess its fit and comfort.
While its prices may be higher than those at some independent dealers, its vehicles are generally in excellent condition. Additionally, all CarMax cars come with a 90-day, 4,000-mile limited warranty.
The company also offers a 30-day money-back guarantee in case buyers change their minds.
For those with trade-ins, CarMax provides fixed offers. In most cases, buyers can even arrange for vehicles from other locations to be transferred to a nearby store, although this may involve an additional fee.
Online Used Car Retailers: Carvana, Shift, and Vroom
Carvana, Shift, and Vroom operate similarly to CarMax but are primarily online. These retailers allow customers to complete the entire car-buying process digitally, with vehicles delivered directly to their homes.
Since there are no physical lots to visit, buyers cannot test-drive a car before purchasing.
Instead, these retailers offer return policies: Carvana and Shift provide a seven-day return window, while Vroom has a seven-day/250-mile limit. However, any shipping fees paid for delivery are usually non-refundable.
Another downside of online car buying is the additional costs, such as shipping and processing fees.
Additionally, if you trade in a vehicle, you won’t be able to reclaim it if you decide to return your purchase. Despite these drawbacks, online platforms offer convenience for those who prefer digital transactions.
Private Sellers
Buying a car from a private seller can yield significant savings compared to dealership purchases.
Private-party transactions generally have lower prices, and negotiations are often easier since sellers lack professional sales training. Popular platforms for private sales include Autotrader, Craigslist, CarGurus, and eBay Motors.
However, private-party sales come with risks. Vehicles are typically sold “as-is” unless still under warranty. To mitigate potential issues, it’s wise to bring a mechanic to inspect the car or schedule a pre-purchase inspection.
On average, private-party purchases cost about 12% less than similar vehicles at dealerships. Buyers should also secure financing or have cash on hand to finalize the deal.
Classified Car Buying Sites
Platforms like Craigslist and Facebook Marketplace offer classified ads for used cars, with listings from both private sellers and dealerships. While these sites can feature great deals, they require careful vetting.
One challenge is that listings often lack comprehensive details or high-quality photos.
Some sellers may also offer vehicles with salvage titles, which indicate a history of significant damage. Additionally, scammers and unlicensed dealers may pose as private sellers.
When using classified sites, prioritize listings with clear photos and detailed descriptions.
Ask sellers for the VIN to check vehicle history, and, as Craigslist suggests, conduct transactions locally and meet in person to reduce the risk of fraud.
Also Read: 10 Best Cars for Long-Term Reliability in 2025: Top Sedans for Daily Comfort and Efficiency