Visit multi-source public auto auctions

There are third-party car auction companies that gather together used cars from a wide range of commercial sources: retired fleet, lease, and rental cars; cars repossessed by banks; and cars taken in trade by dealers ("consignment" cars) who expect to get a better price at auction than on the lot. They auction these at huge circus-style events (with hot dog vendors and balloons!). You'll find the greatest range of choices in model, age and condition at such auctions, but may learn less about a car's source and history than you would at more focused auto auction. The auctioneers have a lot of cars to sell, so things move fast.

I recommend: If you live in the area, check out the New York Auto auction; before going, you can even apply online for financing. Verastar hold auctions all around the southeast, while Brasher's holds events in California and all around the Northwest. The National Independent Automobile Dealers Association has a directory of auto auctions by state.

Tap into government auto auctions and police auctions

Just as with rental agencies, government agencies auction off cars after they have exceeded a certain mileage limit. At police auctions, police departments auction off their older cruisers and vans, as well as vehicles they have seized from criminals.

I recommend: The U.S. Government Services Administration sells its retired fleet vehicles (40,000 per year) at government auto auctions held around the country. CheapCarFinder.com offers one-stop shopping for repossessed and seized vehicles, by ZIP code, as do Gov-Auctions.org and AutoBeyond.com.

Surf to online car auctions

The first name you may think of when thinking online auction is eBay, and indeed eBay Motors auctions vehicles for dealers and private parties. But there are many more online public auto auctions specializing in used cars and/or trucks, as well as online dealers who sell direct online and ship cars nationally. The obvious extra gamble to online car auctions is that you can't examine the actual car (except in photos) before bidding, unless the car resides nearby and the seller is willing to show it. Some sellers will offer an inspection period after you win the vehicle; if there are any major defects the seller did not disclose up front, you can cancel the deal. Bear in mind that if you buy a car from far away, you'll have the additional expense of having it delivered or traveling to pick it up.

I recommend: In addition to eBay Motors, you'll find Monster Motors. Proxibid gives you live, online access to bid on live auto auctions as they happen.