Don't be talked into test-driving a car that is too expensive for you. Learn more about new and used car purchases from the Federal Trade Commission. You'll find articles about car advertising, warranties, service contracts, buying new and used cars, car leasing, and much more. You can buy a used car from a dealer, but you can also buy a used car from a private person. Dealers can include franchise car companies that represent a particular brand of car or they can be independent companies that sell a variety of cars.
Dealers can also include rental car companies, car leasing companies and used car superstores.
One of the advantages of buying through a dealer is that they may offer a better warranty than an individual seller. However, you may not be able to take a car off the dealer's lot to have a mechanical inspection done because of insurance restrictions. You can find out about cars that are being sold by individuals from friends and neighbors, newspaper classified advertisements, bulletin boards, or a sign on the car itself. Some of the advantages of buying from an individual are that you may find a better price through a private owner than you would through a dealer and you can usually arrange to have the car inspected for mechanical problems before you commit to the purchase. But you should keep in mind that there will not be a warranty on the car unless it is covered by the original manufacturer's warranty and sometimes manufacturer warranties are not transferable to second owners.