<prompt> Human: I am in the process of trying to buy a used car and not sure if it is a smarter decision financially to finance a 10-12k car or buy a 5-6k car with cash.I live in a midwestern city and just graduated from college. I got a job at a company 45 minutes away from where I currently live and it pays 65k a year. I made the mistake of signing a lease ending 6 months from now that I dont think I will be able to get out of so I am going to have to commute. I have 7k in a checking account and 12k in an ira. I also have 13k in student loans at 4. I think my credit score is around 600.The cars I have been looking at are mostly priced around 6k not including sales tax and fees. I am trying to get a 4-cylinder ToyotaHondaNissan sedan with the best combination of cost and reliability. It has been hard to find a car like that with good mileage and in decent condition.I am worried about spending 6k because it leaves me with only 1k until I get my first paycheck a month from now. I looked at my budget and know that amount covers all my basic expenses but it still makes me nervous. I am also not sure if I am searching for cars the right way. I have mainly been going to big dealerships and looking at their trade-in inventory.People I know seem to have had a lot of success financing 10-12k 5 year old Toyotas with 50k miles. I am wondering if doing that will end up being cheaper than buying a series of 5-6k cars.  <response>: A dealer is the wrong place to be looking for a 5-6k car. Their markups are such that you will be getting a 3-4k car for their price. At your price range you should be looking for a private sale on Craigslist. If you dont know anything about cars, find a friend or family member who does, and find a garage that will do a pre-purchase inspection on the vehicle for a reasonable fee 100 or so. There are no guarantees you wont get a lemon no matter what you do, but perhaps you can find something equivalent at 4-5k privately and have a little bit of extra breathing room.Do not touch your IRA! 