Not all Used Car Dealerships are Alike

29
November
2021
What is the difference between a franchise dealership and an independent used car dealership?

Franchise dealerships are in large part controlled by the franchises that they represent, brand names like Ford, Chevy, Dodge, etc. So business practices at a franchise dealership are dictated by the manufacturer.

An independent used car dealership has the flexibility of its ownership structure. If it's locally and privately owned, the owners and managers can choose to operate, however they see fit. And that's the major difference.

The benefit of an independent used car dealership is that they have the flexibility to meet a customer's needs, whatever they might be. But a franchise dealership is at the mercy of the manufacturer to determine whether they are able to assist in a manner that's beneficiary to the customer.

Are all independent used car dealerships buy-here pay-here?

Used car dealerships are varied in the way they do business and the niche they fit into. There are used car dealerships that sell for cash or used car dealerships that provide used cars through traditional financing sources such as banks and credit unions. There are quite a number of used car dealerships that are online like CarMax. There are a lot of options in the car buying world for used car purchases.

And then buy-here pay-here is a segment of the used car market that provides in-house financing by the dealership itself or its related finance company.
How to tell the difference?

The dealership you choose should make it very clear that they are a buy-here pay-here dealership or the fact that they finance cars through another means.

Most dealerships make it very clear to customers that to some degree, the transaction will be based on their credit and their credit history, and where the financing efforts will be -- at a bank or your dealership or a traditional loan if they’ve got better credit and have some good past car credit at traditional non buy-here pay here, used car dealerships.

If you need financing that a buy-here pay-here dealership provides, then that's where your buy-here pay-here market comes into play. And Auto Pronto stands ready to help.