Pros and Cons of Independent and Franchise Car Dealerships
Pros and Cons of Independent and Franchise Car Dealerships
Posted on March 21, 2023
What You Need to Know Are you in the market for a used car and wondering whether to buy from an independent or franchise dealership? It can be a tough decision, but here are some factors to consider before making your purchase.
Benefits of Buying from an Independent Dealer
Independent used car dealerships don't typically carry new cars, but they usually have a large supply of used vehicles. Since their used car inventory is often older than what you find in a franchise dealership, you can usually find a more affordable car there. Another benefit is that independent dealerships may be more flexible when it comes to financing options, making it easier for you to secure a loan, even if you have a less-than-perfect credit score.
Risks of Buying from an Independent Dealer
One major drawback of buying from an independent dealer is that they often have their own certification standards with little or no monitoring of them. This means that the vehicle you purchase may not be as reliable or safe as you think. Additionally, independent dealerships often have in-house financing that caters to customers with poor credit or no credit, and as a result, the interest rates may be higher. Finally, it may be harder to determine the condition of the car you want to buy, as independent dealerships usually don’t have in-house service departments.
Benefits of Buying from a Franchise Dealer
One of the advantages of purchasing from a franchise car dealer is that they follow the car manufacturer’s guidelines. The car mechanics at a franchise dealership are certified, having gone through an intensive training program to qualify for the manufacturer’s standards. This means you are guaranteed that your used car service is of high quality. Additionally, franchise dealerships usually have a standardized program for certifying their used vehicles, ensuring that they meet specific quality standards. Finally, franchise dealerships typically offer lower interest rates on car loans.
Cons of Buying from a Franchise Dealer
The main disadvantage of purchasing from a franchise dealership is that they may not have the same selection of vehicles as an independent dealership. However, it's worth noting that franchised car dealerships have invested tons of money into their buildings and infrastructure, so they're not like a trailer with a siding.
In the end, the choice between an independent or franchise car dealership largely comes down to personal preference and budget. Just be sure to do your research beforehand to ensure that you're making an informed decision. And, if you're in the market for a used car in Fredericton, be sure to visit Fredericton Hyundai for a wide selection of high-quality vehicles and knowledgeable sales staff who can help guide you through the purchasing process.