The answer to this question really depends on what you are trying to accomplish. People often say they just want to take the “hassle” out of buying a car. This may be true, but the motivation to get a good deal seems to put the hassle back into the equation. If you think about it, it would be pretty easy to walk onto a car lot, ask them how much the car costs, then simply purchase it at that price and go home happy. So the ideas of “hassle-free” and “best deal” are in opposition to each other. This is true when buying either a new or used vehicle. So you need to decide what is more important to you.

If your primary motive is “hassle-free,” then we recommend buying a new car that has full manufacture warranty. We will cover this in detail in our “Buying A New Car From A Dealer” section.

If your primary motive is saving money, but you are concerned about possible maintenance issues, then we recommend buying from a dealer and making sure the vehicle comes with an extended warranty. We will cover this in detail in our “Buying A Used Car From A Dealer” section.

If you want to absolutely pay the least amount possible for the car, then you have two options, auction or private party. As long as the auction is being held with No Reserve, which means the top bid wins, even if it is $100, it doesn’t matter whether it is a government auction or not. As long as the top bid gets the car, then you at least have the opportunity to get it for below low Kelly Blue Book value.

We should talk about expectations for a moment. We have seen advertisements that will place a $100 price tag above a picture of a late-model SUV, as if to suggest the vehicle is going to sell for that amount at auction. That is extremely unlikely. Now a newer SUV could sell for $100 at government auction if the side of the vehicle that is hidden from the camera view has been completely destroyed in a wreck. Wrecked vehicles are sold all the time and there may be a goldmine in some of those wrecks because the parts can be valuable. Of course that doesn’t help you if you thought you would be driving home a brand new car for $100.

Buying from a Private Party using classified ads like craigslist.com can also be a way to find a car at rock bottom prices. Sellers have different motivations and different levels of experience in selling cars. They might not know low Kelly Blue Book or they might be under financial strain. If they are motivated, you might be able to swoop in with cash and get the car for significantly below market value.

In either example, auction or private party ad, you have to factor maintenance issues into your pricing. Unfortunately, we have no hard and fast rule for doing this, other than to refer Kelly Blue Book for value, which factors in mileage and condition. Just remember that the vehicle will be your responsibility after purchase, and maintenance will then be your hassle.

We will cover these two methods of car purchase in more detail in our “Buying A Car At Government Auction” and “Buying A Car From A Private Party” sections.