• New Car Dealerships: Prices are usually above book value, but good trade-ins can often be found (they get rid of the heaps). Warranties available.
• Used Car Lots: Some good buys can be had, but many of the worst—wrecks, rusted hulks, recovered thefts, and repossessions—end up here. Use caution.The advantage is that you may be able to buy close to the vehicle’s wholesale price.
• Dealer Auctions: if you know someone with a dealer’s license, attend an auction with him, and pay him a couple of hundred dollars to act as a middleman.Vehicles are sold at below whole-sale prices, come with some guarantee, and are required to have notice of hidden problems.
• Government Auctions: Dirt-cheap, low-option, and usually well worn. Forget military surplus.
• People You Know: This can be the best source because you should be able to get a complete history of the vehicle. The downside is that problems which develop later may strain a friendship. Since you won’t get a warranty perform a thorough inspection before you buy.
• People You Don’t Know: You’ll have almost no practical legal
recourse if something goes wrong later, so proceed with caution. Good buys can be found, however, which justifies the risk. Most likely you’ll phone the owner in response to an ad. Many vehicles are grossly misrepresented, so ask specific questions. For example, “Is there any rust showing?” is better than, “Is it in good condition?”Ask to see the service invoices. The more frequently the oil and ifiter have been changed, the better.