Where to Buy a Used Car
This buyer's guide covers the four main ways to buy a used car — dealerships, online-only retailers, hybrid retailers, and private sellers — and what to know about each.
Where should you buy a used car?
Most people buy used cars in one of four ways, each with different trade-offs in price, selection, convenience, and buyer protection.
Traditional dealership: In-person shopping and test drives, negotiable pricing, quality and buyer protections vary by dealer
Online-only retailer: Fully digital experience, fixed pricing, no in-person test drives, vehicle delivered to you
Hybrid retailer: Full online purchase option plus physical locations to browse, test drive, and buy in person
Private seller: Direct owner-to-buyer transaction, potentially lower prices, fewer built-in protections
The best option depends on your priorities. Read on for a full breakdown of each.
Buying from a dealership
Traditional dealerships include franchise dealers tied to a specific brand — like Toyota or Honda — and independent used car lots. Shoppers can browse and test drive cars in person, which is a key advantage. That said, quality, pricing practices, and buyer protections vary significantly from dealer to dealer. A franchise dealer with a certified pre-owned program operates differently from a smaller independent lot.
Ask Skye
How do I negotiate the price of a used car at a dealership?
What should I check before buying a used car from a dealership?
What’s the difference between a franchise dealership and an independent used car lot?
Buyers who want to see and test-drive a vehicle in person before committing
Buyers who prefer to negotiate on price
Shoppers interested in manufacturer-certified used vehicles from a franchise dealer
Those who want a local, face-to-face buying experience
What inspection, if any, was performed on the car before it was listed
How much inventory is available at that location — selection varies widely by dealer
Whether the price is fixed or negotiable, and whether you’re comfortable with that process
The dealer's return policy and warranty options
Buying from an online-only retailer
Online-only used car retailers operate entirely digitally, with no physical locations. Shoppers browse inventory and complete purchases from home. Vehicles are delivered, though delivery fees apply and availability varies by location. Because there are no stores to visit, buyers complete the entire process — including seeing the car for the first time —without an in-person experience.
Ask Skye
What should I look for when buying a used car from an online retailer?
How does buying a used car online work — can I get it delivered?
Are there return policies when you buy a used car online?
Buyers who are comfortable committing without seeing the car in person first
Shoppers who prefer fixed pricing over negotiation
Anyone who wants to complete the buying process entirely from home
Buyers who want to compare a wide selection without visiting multiple locations
Delivery fees, timelines, and geographic restrictions — not all areas are served, and costs vary
Return or exchange policies, and their specific terms — especially important since you won't test drive before delivery
What vehicle history and condition info is included, and whether you can verify it independently
Financing tools available directly through the platform
Buying from a hybrid retailer
A hybrid retailer offers both a full online buying experience and physical locations where you can browse the lot, test drive, and purchase in person. You choose how much of the process happens online and how much happens in store.
How CarMax works as a hybrid retailer: CarMax uses the hybrid model, with both a full online buying experience and more than 255 physical locations where you can browse in person, test drive, and buy. Every vehicle is CarMax Certified, with no flood or frame damage and no salvage history.
Ask Skye
What is a hybrid used car retailer?
Can I test drive a car before I buy it?
What's the difference between an online-only retailer and a hybrid retailer?
Buyers who want flexibility — the option to shop online or visit a location in person
Shoppers who want to browse a large inventory online but test drive before committing
Buyers who value fixed pricing and built-in buyer protections
Anyone who wants to browse the lot and discover cars they might have missed online
Physical locations near you where you can browse and test drive
Whether online and in-store inventory is the same, and if vehicles can be transferred to a location near you
Vehicle inspection standards and history report availability
Return policies and buyer protection terms
Buying from a private seller
Private sales take place directly between a seller and a buyer, typically through platforms like Craigslist, Facebook Marketplace, or Autotrader. This option can offer pricing flexibility, but generally comes with fewer built-in buyer protections.
Private sales work best for experienced buyers. Most first-time buyers tend to be better served by an established retailer or dealership, where clearer disclosures, return options, and financing support are typically part of the process. It's also worth noting that private sellers don't offer financing — if you need a loan, you'll want to secure one through your bank or credit union before the sale.
Ask Skye
What do I need to know before buying a used car from a private seller?
Is it safe to buy a used car on Facebook Marketplace or Craigslist?
What is a vehicle history report and how do I get one?
Experienced buyers comfortable evaluating a vehicle without dealer support
Shoppers open to negotiating directly with an owner
Buyers searching for a specific vehicle that's harder to find through traditional channels
Those looking for potentially lower upfront prices
Evidence of any inspection history — buyer would need to arrange an independent inspection if they want one
A clear process for title transfer, registration, and paperwork
A vehicle history report, verified independently (e.g., through CARFAX or AutoCheck)
What recourse is available (if any) if problems come up after the sale
How to choose where to buy a used car
Here are some key considerations when deciding between the four main ways to buy a used car.
Consider | Dealership | Online-only | Hybrid | Private seller |
|---|---|---|---|---|
Pricing | Negotiable | Fixed, no-haggle | Fixed, no haggle | Negotiable |
Financing | Available through dealer or your lender | Available through platform or your lender | Available through platform or your lender | Must arrange independently before buying |
Inspections & buyer protections | Varies by dealer | Standard across inventory | Standard across inventory | Buyer’s responsibility |
Return option | Varies | Return window offered | Return window offered | Typically not offered |
In-store shopping & test drives | Available | Not available | Available | Buyer arranges |
Time to buy | Moderate | Low — fully online | Low to moderate | High — most coordination |
Selection | On-lot only | Nationwide inventory | Nationwide inventory | Best for specific finds |
Best for first-time buyers? | Yes | Yes | Yes | No |
Regardless of where you buy, always verify return and warranty terms before signing.
How buying a used car at CarMax works
CarMax is the largest retailer of used cars in the United States, with more than 255 locations and an online inventory available nationwide.
Browse thousands of vehicles online. Cars can be shipped to a CarMax near you.
Every car is listed at a fixed price. The number you see is the number you pay.
Every car meets our certification standards, with no flood or frame damage and no salvage history.
See a free AutoCheck vehicle history report before you decide.
Return a car within 10 days if it's not the right fit (subject to terms and conditions).
Shop online, in store, or both. We’re here to help when you need it.
Frequently asked questions
It depends on your priorities. Buying online gives you access to a broader selection and lets you compare vehicles without visiting multiple locations. Buying in person lets you see and test-drive a car before committing. Many shoppers do both — browsing online and finishing in store. The right approach comes down to your comfort level and buying style.
For buyers who want a straightforward experience — fixed pricing, a large selection, and clear buyer protections — CarMax is a strong option. You can browse online, buy in-store, or do both. See current inventory at carmax.com. Every vehicle comes with a vehicle history report, is backed by a 10-day money back guarantee, and goes through a 125+ point inspection. Some cars may have unrepaired safety recalls. Click here if you want more information about that.
The safest used car purchases typically involve a pre-sale inspection, a vehicle history report, clear buyer protections such as a return window or warranty, and a straightforward title transfer process. Established retailers and franchise dealerships tend to include more of these safeguards than private-party transactions. No matter where you buy, always review the full terms before signing anything.
No, our upfront prices are set and our associates are paid the same regardless of a car's price, so our goal is to find the right car for you. Buyers who prefer this value the predictability. Those who want pricing flexibility would need to look at a traditional dealership or private seller.
Regardless of where you buy, look for: a vehicle history report, an independent or certified inspection, transparent pricing, a clear explanation of return and warranty options, and a straightforward title process. If anything is unclear, ask before you sign.
We hope you found this information helpful. This content is intended to inform and is not meant to indicate that a particular vehicle is currently available or recommended for you.
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