There are some lovely used instruments on eBay, and it's easy to grab yourself a hardly used instrument for a fraction of the cost of a new one. You just need to know how to approach it.
Lesson 1 - Buyer Beware.
'Flute for sale. Sorry but I don't know anything about them so don't know if it will play. All parts fit together. It is stamped Lark - Made in China. Low start, no reserve.'

Doesn't tell you much does it? But the flute itself looks to be in good condition. So what next? The seller doesn't know anything about it, so you may think twice about asking questions. How about asking for more photos? Good start... here are some more photos...

Looks nice doesn't it? With the bid currently standing at £15 and no reserve, chance of a real bargain... yeah?
I got the flute for £25 + p&p. On opening the case, here's what I found.

The kink is stopping the keys from closing. Sounding any note below G is a struggle, and on the lower register, impossible.
Moral of the story... always ask questions. A seller may not be able to play or comment on playability, but they can comment on what they see, and when asked, will.
Lesson 2 - The Questions You Should Be Asking
Does the flute have any dints, dents, kinks or scratches?
Tiny dents, dints or scratches are common in used flutes, and as long as they are only tiny (no bigger than a few millimeters) and not located on key cups, they are unlikely to affect playability or tuning.
If an instrument does have dents or dints, and the seller hasn't provided photographs showing them, you should request them. This is the only way you will be able to see for yourself the extent of the mark. You will also be able to take these photos to your flute teacher for advice.
It is important to avoid instruments that contain kinks. Unlike small dents and dints, kinks do affect tuning and playability. Depending on where a kink is located, it may also have caused damage to the key cups, meaning that even if the kink is removed, without work to rectify the cups, the keys won't seal the holes correctly, and the flute won't play. While it's possible to repair such damage, it's likely to be costly.
Are there any marks other than the makers mark and stamped serial number?
This may seem like a silly question to ask, but I have seen instruments that have been crudely engraved with their previous owners name or worse. While such engravings or etchings rarely affect playability or tuning, they are unsightly, and drastically devalue the instrument.
Are the pads in good clean condition and free from leaks?
If pads are worn or badly seated, they won't seal the hole as they should. This will cause the instrument to leak. The further up the instrument the leak, the more notes it will knock out. Re-padding an instrument is an easy job for a reputable instrument technician, but it can be expensive. If you're able to obtain a quote for such work, you can factor this into the price you're willing to bid.
Do all the keys open and close correctly?
Keys that don't open or close correctly are more often than not down to an instrument being out of regulation, or a spring that has popped out of position. An experienced flautist or teacher should be able to rectify this for you without too much trouble. Occasionally the cause of the problem is a broken/missing spring, this requires more specialist repair work.
It is worth noting at this point that flutes can go out of regulation in transit. If you have bought an instrument that doesn't work as described, please ask your teacher or an experienced flautist to check it over before leaving negative feedback. Please also notify the seller you are doing this.