Locate and Test-Drive Your Target CarsIn Part One we stressed the importance of deciding on your price range and arranging financing before you shop. We also told you how to identify good used cars that could be bought at bargain prices.

In this section, we'll locate several likely candidates and learn how to effectively test-drive and evaluate the mechanical condition of these "target cars."

Step 3: Locate Your Target Cars

Your goal is to locate three cars that fit your criteria. This will put you in a stronger bargaining position and will give you a fall-back position if your top choice falls through.

Use a number of different sources to conduct your search:
Online classified ads on AutoTrader.com, eBay or Craigslist
Daily newspaper classified ads
Weekly shoppers and giveaway papers
Listings on college and business bulletin boards
Word of mouth: Ask all your friends if they know of any good used cars for sale.

During your search, you'll come across cars from dealerships, private parties and possibly even used rental cars. We'll examine each of these options and then show you how to qualify your target cars before test-driving them.

Private Party vs. Dealership

Many people are intimidated by the dealership experience, fearing pushy salesmen and professional negotiators. But there are several advantages to shopping for a used car at a new car dealership:
A wide selection — the dealership might have two or more cars you're considering.
Increased availability — dealerships have hours that suit your schedule.
Financing — a dealership may have several ways to finance your loan.
Potential bargains — private party prices are usually lower, but there are still bargains on the lot, particularly at the end of the month.
Certified Used Cars — a dealership can sell you a certified used vehicle that has many of the same benefits as buying a new car.

You can find dealerships that have treated customers well by searching Edmunds Dealer Ratings and Reviews.