The Top 5 Places to Buy the Best Used Cars

Used car prices have fallen an average of 3.3% over the last year, which is good news for shoppers. However, don't sell your budget too short just yet, because loan interest rates are still quite high. In fact, last year, the average interest loan rate on a used vehicle was a bit higher than 12%.

You could wait for economic conditions to improve before buying a car, but not everyone has that luxury. If you need to buy a used car now, consider which used car sellers offer the best experience and the best value.

Before you make your final decision on a used car, make sure you compare car insurance costs, too. An independent insurance agent can get you auto insurance quotes from multiple car insurance companies for the cars you're considering, so you don't have any surprises after you've made your purchase. But first, check out this guide to the best places to buy used cars.

Top 5 Places to Find the Best Used Cars at Great Prices

It's not impossible to find used cars at a good value with relative ease, but you have to be a smart shopper. Prices may even vary from city to city; you might find a better deal in the next town over. 

For many, the choice of where and how to shop for a car is a personal one. What one person may determine is the best option might not be ideal for another. We want your car-buying experience to be a good one, so we compiled a list of places where you might consider shopping for a used vehicle, along with the pros and cons of each. 

1. Dealerships: Not Just for New Cars

When you're looking to buy a new car, you don't have many options outside of a dealership. Dealers work directly with car manufacturers and have all the latest models. For someone looking to buy a brand-new car, this is definitely the best place to buy. 

For those seeking a used car, dealerships include a number of certified and non-certified pre-owned vehicles on their lots and can be the best place to start when buying a used car. These cars are typically obtained through trade-ins and are often high-quality. They send the lesser-quality vehicles to used car lots at dealer auctions.

Certified pre-owned cars are of the same make that the dealership specializes in. Mechanics specializing in that type of car and using factory parts have inspected and reconditioned these vehicles. While this expertise and level of service provide greater confidence in your purchase, it may increase the price of the vehicle. Non-certified vehicles are of a different make, and while inspected and maintained, they don't receive the same level of attention as certified vehicles.

Car Dealership Pros and Cons:

Pros:	Cons:
You are likely to receive a great warranty when you buy a used car from a dealership.	Working with a dealership usually means paying more. When a dealer takes a trade for a new car, the dealer assumes the risk involved with that used car and the required legal documentation. The costs involved get passed on to you.
Certified pre-owned vehicles frequently come with bumper-to-bumper and powertrain warranties for several thousand miles.
Non-certified vehicles may also come with a warranty, but it may not be as extensive as that of a certified vehicle.
The dealership will likely assist you with financing the purchase of your used vehicle.

2. Independent Used Car Lots: Possibly the Best Place to Buy a Used Car

Privately owned used car lots often have lower-quality vehicles than you can find in the pre-owned section of a dealership. However, the cars at these lots are also more affordable for those on a budget. 

Used car lots often have a more desirable and diverse inventory than dealerships. The owners usually buy their inventory at a vehicle auction, meaning they've always got their finger on the pulse of the used car market and know what's selling and what's not. 

Independent Used Car Lot Pros and Cons:

Pros:	Cons:
The cars at independent used car lots are usually less expensive than those at dealerships.	You're less likely to receive a decent warranty on these vehicles purchased at an independent used car lot, so it is a good idea to run a vehicle background check before making a purchase.
Used car lots may also offer financing for those with bad credit (but be aware that the interest rate will likely be quite high).	Because these businesses tend to have a wide range of cars, the salespeople may not be as knowledgeable about the vehicles you are interested in.

3. Chain Used Car Lots: The Best of Both Worlds 

So, where is the best place to buy a used car? It may be a chain used car lot. These large, national used car retail outlets are different in that they combine the benefits of purchasing at a dealership with the cost-effectiveness of purchasing at a traditional used car lot. 

These large chains have a reputation to uphold, so they thoroughly inspect and recondition the vehicles on their lot. Those that are not in excellent shape are typically sold to other used car lots.

Chain Used Car Lot Pros and Cons:

Pros:	Cons:
Cars from this type of lot almost always come with a decent warranty.	Because this type of used car lot is a relatively new concept, there are not very many of them yet, so you may not have one near you.
The number of cars sold, rather than the value of the car you buy, typically determines sales commissions, so sales associates are more likely to direct you toward the best car for you.	Also, if your credit is poor, don't expect these lots to finance your purchase.

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4. Private Sellers: Where to Buy a Used Car at a Low Price

This may be the riskiest way to purchase a used car, but it's often the least expensive. You won't have the added costs associated with salesperson commissions, lot storage expenses, or reconditioning costs. You can find private sellers through classified ads in newspapers, online sites, and car enthusiast forums, or by word of mouth or a "for sale" sign on a vehicle.

Private Seller Pros and Cons:

Pros:	Cons:
Many private sellers ask for only slightly more than what a dealership would offer them on a trade-in.	Private sellers nearly always expect full payment in cash at the time of sale, and the cars do not come with any type of warranty.
In many cases, private sellers are more motivated by getting rid of the vehicle than maximizing their profit.	If you don't know much about cars when buying from a private seller, bring along someone who does when evaluating the vehicle in person.

5. The Internet: The Best Way to Narrow Down Your Search

Many people like to rely on the internet when buying a used car. So, what's the best place to buy a used car online? There are several websites dedicated to helping people find the best place to buy a car. Here are some of the most popular:

It might be harder to verify the quality of a vehicle from an online seller, and not every site is ideal for your unique needs. In general, however, car websites make the shopping experience simple with detailed, searchable listings, car reviews, buyer guides, and more. 

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Get Coverage for Your Used Car With the Help of an Independent Insurance Agent

For most buyers, used cars are a wise investment since they retain purchase-price value longer than new cars. But before you decide which car to purchase, consider your car insurance needs. No matter where you buy your next vehicle, you'll likely need coverage before you hit the road. 

A local independent insurance agent can help you when you're ready. They'll shop and compare policies and quotes from multiple carriers near you to find the absolute best deal. And down the road, your agent can even file car insurance claims for you and update your policy when necessary.