You cant actually take advantage of your local used car dealers but you can get a
better deal from them than from an out of town dealer that you may never visit again. Local used car dealers are in business to sell cars and to make a living selling them. They have a reputation to maintain if they want to continue to sell cars to their neighbors like you. Local used car dealers are owned by men and woman too, that attend city council meetings. They participate in local charity functions. They donate to the boy scouts. They are your neighbor.
An out of town used car dealer couldnt care less where you live or work, other than the fact that you are employed so you can make the car payment. If you buy a used car from them they probably wont be too concerned if it breaks down on the way home. You are less likely to return to an out of town used car dealer to get repairs done or buy new tires when needed.
This is why you can take advantage of a local used car dealer. Buying local means you are helping keep your local businesses in business so you dont have to go out of town to make your purchases. The local used car dealer knows this. Because he wants to maintain a good business presence he should be willing to give you a better deal on the car you buy from him. You certainly can remind him of this.
Probably you both have kids that attend the same school or play on the same sports team. So you are already buddies with him or his wife. You may attend the same church. Again an advantage you have when shopping for a used car from him. He certainly doesnt want to be embarrassed if you tell someone that the car he sold you was a lemon. Nope. He wants you to tell your friends what a good deal he gave you on that used car.
Your local dealer wants you to return to his car lot to have your maintenance done on your new vehicle. He wants you to buy your new tires when you need them from him. He wants to continue to make money from you. And you dont have to go out of your way to drive past his lot every day. And when you drive by, he wants you to be happy with your purchase.
Do make sure you compare prices before you buy a new used car. If you are forearmed with this knowledge you are in a better bargaining position. Also make sure you know how much that out of town dealer will sell you a used car for. And dont be afraid to let your local dealer know it. Even thought he is a neighbor you will probably still need to negotiate that final price down. Or at the very least, get some upgrades on the vehicle you buy!