That makes comparison shopping more of an art than a science. And dealers have a little bit of an advantage since they know you can't just leave in a huff and buy the exact same car at another dealership.

There are three main sources of used cars:

Used car dealers
One of the great advantages of buying a used car from a dealer is that they sometimes come with the benefit of a warranty. That's comforting when you consider that a previous owner may have used your new vehicle to haul chickens down an uneven gravel road for three years. But you probably won't get as good a price as you will if you buy from the Average Joe/Jane.

Private sales
Dealing with just another car-owner can take a lot of the sting out of buying a car. Without the intimidating dealership setting, you might feel more comfortable about engaging in a little more negotiation than you would in a car dealer's wood-panelled office. What's more, you can save on government taxes going this route: if you buy from a dealer you have to pay GST and PST both -- if you buy privately, you don't pay GST (but you still have to pay PST when you register the car with the province for plates). But you won't get a warranty if you buy privately. And it can take a bit more legwork: looking at five cars means visiting five different people.

Public auctions
You can get some incredible deals at public auctions. There is no dealer to haggle with and only other potential buyers will increase the price. The downside to these auctions is that you usually can't test-drive the car and it is extremely rare to get a warranty on an auctioned car.

Research is important

The point of buying a used car is to save money. But if you don't research the car you buy, it could end up costing you more than a new car! It's a good idea to compare the prices of several similar vehicles in your vicinity to get a feel for the price ranges. If you don't know much about car prices, you'll need a price guide. A good bet is the Canadian Red Book (www.canadianredbook.com).

Wholesale prices are also available from the Canadian Black Book (www.canadianblackbook.com). It contains both average trade-in and average retail prices for used vehicles from 1991 to 2000.

When it comes time for the test drive, be relentless and thorough. Ask the seller about any strange noises the car makes. Anything. It might just be an odd quirk. But it could be a telltale sign of a much larger problem. Use everything in the car. Press every button. Open every window. Open and close every door. Once you are sure there is nothing wrong with the vehicle, get a professional mechanic to give you a second opinion. Subtract any small thing wrong with the car from the price you are willing to pay for it. After all, you'll end up paying that money back to get it fixed.