Pros and cons of independent and Franchise car dealers!

November 19, 2019

When you’re looking to buy a used car from a dealership, you have two choices. You can choose to buy from an “independent” dealership or a “franchise” dealership. Each of them has their strengths and weaknesses when compared with each other.

Car Dealers (Independent) –

  • They always deals with used cars
  • They don’t have agreements with any particular car manufacturers to sell certain makes of vehicle and they won’t mention any particular car brand manufacturer in their name.
  • Since they’re not linked with any specific car manufacturer, independent dealers don’t sell new cars.
  • They will offer a wide range of variety of used cars from many different makes.

Car Dealers (Franchise) –

  • These kind of dealers have the authorization or “franchise” from certain automakers to act as an agent in selling their vehicles.
  • You can find franchise dealers easily because the dealership’s name will usually contain a car brand’s name in it.
  • Find top brands franchise dealers here:  Subaru Dealers, BMW Dealers, Dodge DealersJeep Dealers, Mazda Dealers , for example.

See the weakness and strength of these 2 kinds of dealers –

Vehicle Diversity

Independent car dealers will typically have a much bigger selection of used cars to choose from. Franchise dealers don’t not focus on used cars because they have much margin in new cars.

Financing

The interest rates of franchise dealers usually have lower than independent dealers. But independent dealers are also more likely to offer financing to people with less than excellent credit.

Vehicle lifetime –

Used cars at franchise dealerships are usually later models. Independent dealers are limited to offer old models, but also typically have a selection of cars that are older than you would find at a franchise dealer.

Market Value –

Prices for used cars at franchise dealerships are often higher than at independent used car lots. But independent dealers often offers a bit older inventory than at a franchise dealer, you’re more likely to find cars for lower prices.

Vehicle Service –

Mostly, franchise dealerships offers their own service departments with technicians trained to work on the brands of new cars that they sell. It can be a good option to buying a used Honda from a franchised Honda dealership, but doesn’t matter so much if you’re buying a used Chevy from the Honda dealership. Usually independent used car dealers don’t offer service departments to fix your car after you buy it. However, there are plenty of good, independent mechanic shops around to fix your car, so it’s not really a big deal.

So, these are pros and cons between buying a used car from an independent dealer and a franchised dealer. You should check out each kind and see what right for you.