If you are in the market for a new car, you may want to consider a used car that will be new to you. Since cars depreciate so much as soon as they leave the car lot, you could get a lot of car for your money if you buy a used car. You have endless options for how to shop for a used car as well.

Used cars abound everywhere from the Internet, private sellers and dealerships. Through each of the avenues you will get  different costs and benefits. If you go through a private seller for instance you may be able to secure a lower price for the vehicle. Private sellers do not include all the bells and whistles that dealers do, they have no overhead and they may be motivated to sell for personal reasons and more willing to lower the cost of the car. However, you will not be able to negotiate for additional dealership warranties, extra floor mats or upgrades on audio for instance.

Dealerships are going to be pricier, but they also have to remain competitive and offer the benefit of more one-stop shopping over private dealerships. You can spend a lot of time chasing down the best deal on the used car that you want but by walking into a dealership you are offered a range of options in one place.

When it comes to financing you also have a variety of options available to you. If you are planning on buying a car privately then you will need to work out your own financing through a bank. Used auto loans also get different rates than new car loans and they are somewhat higher rates. You can compare loan amounts through various online loan resources. There are a plethora of sites that advertise cheap auto loans. However, they mainly cater to those with low or limited credit so they may not be truly cheap if you have good credit. If this is the case you will get a better deal elsewhere. You can call your personal bank; since they may be motivated to serve those they already have a relationship with. However, you may find that even your bank rates are not very low or competitive with what the dealerships can offer through their financing avenues.

The difference in auto loan rates may negate any savings you are getting by going privately. The dealerships work hard to beat the bank rates and are able to submit your application with various lenders at once. They also roll all the taxes and registration fees into the total loan so this may be more convenient for those who do not have a down payment or extra cash for incidentals.

The treatment from a dealership also may be a gift that keeps giving. They generally put new tires on the car, do a detail cleaning and run a thorough mechanical check that they guarantee. Feel free to negotiate by asking they throw in an extension on the warranty too. Piece of mind can be worth a lot.