Most People Go To a Dealer...

Many people go to a dealer/used car lot so they can get financing (at a high interest rate). Dealers love this because most of their profit is in financing. Not only will you get a worse deal on financing but you will also spend more money to pay for the dealer/car lot overhead. Private party deals can save you significant cash.

If you could make a confident private party used car purchase, then you could save $100s-$1000s of dollars. Not only that, but the financing at these places is terrible.
By taking your time when buying a car you can save a tremendous amount of money on loans. But how do you finance a private party loan if you don't have the money? Clark Howard (page 7 of Clark Smart) recommends that you get financing by one of the following:

1. Credit Union
2. Online Lender
3. Bank

But NEVER get financing by the DEALER!  They typically get financing from the bank for  you and then mark up the interest 6-10% (Clark Howard pg. 8 Clark Smart) See what   kind of deal you can get at your local bank or credit union. Check out one of the online lenders Hassle Free Loans, Great Car Rates, Cars America, eloan.com, lendingtree.com, bankrate.com.

Once you get financing you can make your purchase!