My brother only buys his used cars from a major dealer, no small lots- spends more money... (F150, vehicle)

[Bad Back]

My brother and I were having an interesting conversation about buying a used car. Both of us have never bought a new car but over the last 30 years, both of us have purchased many used cars. Both of us usually buy a used car that is 1-3 years old.

Where we disagree is where to buy our used cars. In my experience, the best prices for used cars are usually found at small lots that are not connected with major dealers. Low overhead, low prices but sometimes shady salesmen.

My brother will only buy his used cars from the major car dealers or a place like CARMAX. He likes dealing with a large organization with a good reputation. I tell him places like CARMAX and large dealers have such high overhead and advertising costs that he is going to pay $2000-$4000 extra. He somewhat agrees the price is higher but says it is worth it because you are dealing with a professional salesman and the great customer service of the large dealer.

I agree that the salesmen at some of the small lots are kind of sleazy, but their prices are lower and I can get the car inspected anyway to see if it is OK.

Where do you generally buy your used cars: A major car dealer, a small lot, or from a private owner and why?

[blktoptrvl]

Your brother is probably doing that so that he can get both a discount AND a pretty good warranty.

If I were looking for a used car, I think my order of preference would be:

1. A private owner who lets me thoroughly inspect and test drive the car.
2. A medium sized dealer (not a new car dealer) who is well established and offers a good warranty.
3. A new car dealer, again with warranty.
4. If looking for a temporary vehicle - a small lot dealer. My impression is that these "bottom of the food chain dealers" are only getting the dregs because the upper level stores have already taken the good stock.

[somebodyfromnc]

Best way to buy them is from a franchised dealer as a CPO, especially if you're buying cars that new.

[BostonMike7]

I typically buy 1-2 year old CPO's, so the only place to really get them is a dealer. Warranty tends to be better and it's beats paying full MSRP. I usually get a nice low interest rate as well meaning I can hang onto my money and invest it.

I really don't trust a lot of those used car lots on the corner. Most are probably auction cars that the mainstream dealers didn't want. Next time I shop at one will probably be when I help my kids buy their first car and need something in the $5K range.

[Mike From NIU]

I agree with the previous posters; the small lot owners generally get their cars at auction or through repo connections. If the vehicle is desirable, the larger dealers (new and/or used) will outbid to a certain level. I certainly wouldn't rely on a warranty of any sort at a corner lot.


The benefit of a CarMax (even if you pay a higher price) compared to a traditional new/used car dealer is that you have a lot less of the bullfeathers to put up with. I mean the multiple trips to the manager's office, keeping you in for hours at a time.


(Off-topic: We're looking for a replacement vehicle in the next year, and from my preliminary research used ones of this type are generally found at brand-name dealers. While supply isn't too high, no one dealer has a monopoly. As such, when it is time to buy, I will let the salesman know that we have 1-hour limit from the time I enter his office/cubicle until I drive away, either in my current car or my new(er) one. I have a feeling I will be driving away from at least one dealership, with subsequent desperate calls begging me to return.)

[rbohm]

there are pros and cons for both as others have noted. in the long run though the ultimate decision is on the buyer. i have gotten good cars from small lots, and bad cars from larger dealers. the nice thing about buying from a large dealer, like my niece did when she bought her yaris, is that the dealer gave her lifetime service for her car. smaller dealers cant afford to do things like that.

as long as you inspect the car, or get it inspected, and it comes up clean, and you like the car, it doent matter where it comes from.

[High_Plains_Retired]

Like rbohm above, I've gotten good and bad used cars and trucks from private owners, small dealers and huge dealers. I've also gotten terrible new cars from dealerships. After driving for over 50 years though, I have found I have gotten less and less bad deals from anyone.

My wife and I are now looking at what will most likely be our last vehicle. Hopefully it it will be a used F150 4x4 Platinum, a Lariat or a loaded out XLT with low to average mileage. Small lots scare me less than private owners since lots normally have at least a 30-day warranty. As long as you know what you are buying, know how to inspect it closely and not have any fear of haggling, any type of sales place works for me.

Right now CarMax seems to have as good of deals as anyone on trucks since here in west Texas every other person has one.

[Mike From NIU]

Originally Posted by rbohm

there are pros and cons for both as others have noted. in the long run though the ultimate decision is on the buyer. i have gotten good cars from small lots, and bad cars from larger dealers. the nice thing about buying from a large dealer, like my niece did when she bought her yaris, is that the dealer gave her lifetime service for her car. smaller dealers cant afford to do things like that.

as long as you inspect the car, or get it inspected, and it comes up clean, and you like the car, it doent matter where it comes from.

That's true. One of our current cars came from a tiny dealer on Craigslist. He tried the quick-flip model, and was worried more about volume than trying to squeeze an extra $200 out of any particular sale. He didn't even have a corner lot, but a smaller garage area in an industrial park where he kept his inventory. Still, that car has serviced us for nearly a decade with no problems. But he had the car we needed, the CarFax was clean, it was at a great price, and it has turned out well for us.

[trlhiker]

I buy only from large dealers.

[somebodyfromnc]

Originally Posted by BostonMike7

Warranty tends to be better and it's beats paying full MSRP.

I've never paid MSRP on any new car I've ever bought. My F-150 I got almost $10K off and it was a factory order to boot. The wifes Avalon was about $4500 off.