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I would avoid the small independent "lemon lots" and stick with an established dealership from one of the major car makers. No promise that you won't get hosed over, but I think your odds of finding a better quality used car on a Ford or Honda dealership is better than Sal's Hot Car Lot.
Seriously go out of town. Port Jervis has a ton, It's a depressed area so prices are good. You can take a train there and literally walk to several of them (or a short cab ride). your money will go much farther.
Private party all day every day at that price point: craigslist, cars.com, autotrader, etc. Yes, there are scam artists on those too but they usually give themselves away a lot more easily than a scheister on a used car lot.
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