Where's the Best Place to Buy a Used Car?

If you want to save a buck, it makes dollars and sense to buy used. Yet used cars today still carry a historically high average price. The average sales price of a 3-year-old used car eclipsed $30,000 in 2025, according to data from Edmunds. Three years ago, fewer car shoppers chose to lease vehicles, resulting in a shortage of off-lease cars now. The tariff uncertainty isn't helping either, especially on imported models. The shortage of used cars means dealers can pick and choose what to sell and at what price. This all makes choosing the right used car retailer crucial in optimizing your cost savings versus a new car.  

Use the following reference guide to check out the best place to buy a used car in person. Also, check out our separate article on the best used car buying websites. Each used car retailer flexes different strengths and weaknesses, and you might have certain preferences, like using a service center at a new car dealership that also sells used cars. Our guide encompasses a range of used car retailers to meet your preferences.

Nearly every car purchase starts online. But in order to test-drive a used car, you'll have to step away from the websites and into a brick-and-mortar dealer or go to a personal residence. Each of these avenues offers its own type of used car. We've structured this article to first identify the types of places to buy a used car, and then we'll name our recommendations for the best places to buy a used car. 

Types of used car sellers

• Certified pre-owned used cars at a dealership
• Non-certified used cars at a dealership
• Independent used car dealerships
• Private-party used cars

Best places to buy a used car

• Edmunds
• CarMax
• Online used car retailers

Note: Before buying anything, and for some shoppers, before testing anything, first stop at the National Highway Traffic Safety Administration's (NHTSA) recall site. Enter the vehicle identification number (VIN) for the used car you're considering to check for any open recalls. It's not illegal for sellers to list and sell a used car that's under recall and not yet repaired. An automaker and its affiliated service center have to fix a recalled car for free, but you need to decide if that's an extra step you want to take once you've purchased the car from a non-affiliated retailer. It could also be a negotiating tool. 

Certified pre-owned used cars at a dealership

A certified pre-owned (CPO) car confers the assurances of a new car with the value of a used car. CPO vehicles are typically gently used or late-model cars in good condition with relatively low miles. An automaker and its franchised dealership partner team up to resell a CPO vehicle with a manufacturer-backed warranty once a certified technician completes a multipoint inspection and repairs whatever might need repairing with factory parts. The warranty provides additional peace of mind. General Motors, for example, offers a CPO program that includes a 171-point inspection plus a one-year/12,000-mile bumper-to-bumper warranty on top of the original factory warranty, if it remains. It guarantees the powertrain, too, with a six-year/100,000-mile powertrain warranty from the original in-service date, or when it was first sold to the original owner. Check out other automakers' CPO names and details at our certified program comparison tool. Even with a CPO warranty, our recommendations remain the same: Do your homework and complete a test drive. CPO cars aren't perfect. Read "Certified Pre-Owned Cars: A Reality Check" for the pros and cons of a CPO car.

The upsides of a CPO car, of course, come at a price. CPO cars are typically the most expensive used car option. Expect to pay an average of 4.3% more, or $1,245, for a 3-year-old non-luxury CPO vehicle, according to Edmunds sales data. If you are interested in a luxury vehicle, it will cost an average of 4.7% more, or $1,938, for a 3-year-old CPO vehicle. To skip the CPO alternative, consider buying a gently used car from a private owner that still has a factory-backed warranty. Just make sure from the seller and the automaker that the warranty is transferable. Most are. 

Non-certified used cars at a dealership

Every other used car sold at a dealership is classified as non-certified. The dealer typically inspects them, but perhaps not as thoroughly or with as much scrutiny as a CPO car. Some shoppers may want to skip the CPO premium and rely on a brand's reputation, but just as every VIN is different, so is every vehicle's history. The older the used car, the less likely a shopper can lean on a brand's reputation. Most used cars get a reasonable enough inspection and the dealer typically fixes most major issues to extract the most value. Dealers accept trade-ins of various makes and models, which is why you'll sometimes see used Honda products in a Toyota lot and vice versa. Most dealerships include a free Carfax or AutoCheck report online, and if they don't, we strongly recommend requesting one. They serve as the backstory and health report of your potential car. It can show recall info, too, but we still recommend cross-referencing that model with the NHTSA's VIN lookup tool for recalls. The NHTSA tool also shows owner complaints, which can point you to potential trouble spots. 

Independent used car dealerships

Independent dealerships carry multiple makes and usually aren't associated with any specific automaker. The big differences from automaker-backed dealerships are that independent dealers are more likely to sell older used cars with lower prices and are more willing to offer financing to shoppers with lower credit ratings. The downside is the interest rates may be higher, and buying from an independent dealer requires more trust and knowledge on the part of the shopper. 

The size of an independent dealer can range from a pop-up corner lot to a large franchised used car lot with a service center such as CarMax*. Independent dealers are more likely to cater to the needs of their neighbors, and they're more likely to specialize in certain types of vehicles, such as European imports, green cars, classic cars, etc. Such places help narrow down your search and put you in like-minded company. 

When it comes to financing, independent dealers are more willing to sell to a shopper with poor credit, but the financing arms may charge higher interest rates for the risk. So even if the sticker price seems lower than at a new-car dealer, it might get washed with a higher interest rate, depending on the loan terms. Edmunds advises used-car shoppers to seek auto loan approvals from a big-name dealership first, or even from a credit union or local bank. Large franchised dealerships often work with multiple banks, including some that specialize in serving people with less-than-perfect credit. 

In addition to higher interest rates, the downside to independent dealerships is dealing with more unknowns. They may offer what they call CPO cars, but they're not backed by an automaker, so you have to read the terms carefully. The listed prices skew to the high side, with the expectation that there will be negotiations. Also, it's incumbent on the shopper to research the VIN and to do a thorough test drive. Shoppers confident in their car knowledge might benefit from an independent dealer, while new shoppers might find it a bit more intimidating.  

Since the quality can also vary from one place to another, we recommend you run Google and Yelp searches to assess the dealer reviews from past shoppers. The Better Business Bureau is also a good resource. As ever, make sure you run a vehicle history report for anything you are seriously considering. We also recommend that you read our "Field Guide to Independent Used-Car Lots."

Private-party used cars

For shoppers who want to test their automotive knowledge against the market, buying from a private seller might make the most sense. You can target specific searches for a specific car on all manner of websites, ranging from classified sites such as Autotrader, Facebook Marketplace and Craigslist to auction sites such as Bring a Trailer. You could land a coveted barn find or some other personal treasure that might be the seller's trash. It could be easier to find a motivated seller at a motivated price. Seeking out a specific model could limit your range of vehicle types and you may have to travel farther to test it out. 

Testing it out becomes the challenge in many private-party exchanges, especially on Marketplace and Craigslist. Autotrader and other auction sites have more accountability baked in since, oftentimes, it costs money to list a vehicle and shady sellers can be flagged or banned. Most private sellers list the car as-is, and unless you bring a mechanic along, you might not know what you're getting. Request service records, run the VIN, and check the seller's profile and ratings before you go. And never go alone.

The upside is a better deal. A used vehicle sold at a dealership costs 12% more than a private-party sale, according to pricing analysts at Edmunds. Arranging payment must be completed beforehand, and make sure the seller has the title to sign over to you as you hand over a cashier's check. For more info, check out this guide on how to close a private car sale.    

Best places to buy a used car

Edmunds

Most used car shopping starts online, and of course, we think Edmunds' used car listings are a great place to start. Search by make and model, or search by vehicle type, or search by price — and that's just the beginning. Narrow searches with dozens of filters, ranging from car color to CPO cars to listings that offer home delivery of used cars. Compare prices nationwide to see what kind of deal it is relative to other markets. It also shows price drops and an estimated timeframe of how soon the car will sell, which could inform your negotiating power. To be clear, Edmunds isn't selling the vehicles, but we can help you locate and get in touch with the dealership to see the vehicle in person and complete the sale.

CarMax*

With nearly 250 locations in more than 40 states, CarMax is the largest used car seller in the country. The retailer offers most of the same services as a new-car dealer, including extended warranties, financing and services. It also offers concierge services such as 24-hour take-home test drives and can deliver a used car to your door, within a certain range. Its nationwide reach means you can shop for the best deal for the best car for you, across all makes and models. CarMax offers free local transfers and charges a fee for state or nationwide transfers.

CarMax prides itself on a hassle-free, no-haggle shopping experience. The salespeople get paid on a flat-commission basis, which means they'll get paid the same amount whether they sell you a BMW or a Ford. Additionally, all CarMax vehicles come with a 90-day/4,000-mile limited warranty (whichever comes first), as well as a 10-day money-back guarantee. It also offers an optional extended warranty on every car purchase. 

Every CarMax service center employs ASE-certified mechanics, and every vehicle undergoes a 125-point inspection. However, some cars may have unrepaired safety recalls that need to be taken to a manufacturer-authorized dealer service center. 

CarMax prices may be higher than at other used-car sellers because of these services, and there's really no negotiating, which could be a good or a bad thing, depending on the shopper. 

Online used car retailers

While CarMax has an online purchasing option without you needing to visit a store or go on a test drive, other online used car retailers such as Carvana and Vroom specialize primarily in online transactions. Once purchased, the car can be delivered to your home, and a seven-day return window on many sites provides the opportunity for an extended test drive as long as you're good at returning things you might not want. Certain shipping fees cannot be refunded. For more info, visit our related story on the Best Used Car Websites. 

*Disclosure: Edmunds was acquired by CarMax in 2021.