If you’re interested in buying a used car, you may have found that there are a few options available for to purchasing one. You can visit a new-car dealership, such as Ford of Your Town or Smith Toyota, or you can visit an independent used-car dealer, like Steve’s Used Cars or Johnson Motors. Of course, you can also buy from a private seller.
Which is the better option? Some shoppers won’t go to any dealer except a name-brand retailer that’s affiliated with a manufacturer, but are those dealerships really a better place to buy a used car? We have the answer.
Used Means Used — Usually
One reason why some shoppers will only buy cars from name-brand dealers is that they expect those vehicles will be in better condition. After all, most shoppers suspect that a local Ford or Toyota dealer will only sell cars that they feel are good enough, meaning that used cars from those dealerships won’t have many problems later on.
In some senses, this is true because name-brand dealerships are often more worried about their reputation than independent retailers are, and new-car manufacturers may have rules about what’s allowed and what’s not allowed. New-car dealerships that sell used vehicles will often only sell cars of the highest possible quality, but there’s one important thing to remember: These are still used vehicles. A used car from a name-brand dealer might still break down just as frequently as a vehicle from an independent retailer. After all, neither dealer has the ability to predict what’s going to happen.
To limit some of the risk, you can look into certified pre-owned (CPO) vehicles that come with a warranty backed by the original maker of the car. This means that those cars have passed through a rigorous inspection process, but not every used car that shows up at a dealer’s lot will be turned into a certified Honda or GM or whatever brand you’re looking at. Many cars are rejected from the program because they’re too old, have too many miles or are just generally in poor shape. Only a new car dealership can sell certified cars. Other lots may try to sell you a car that they label as certified, but those are really just used cars sold with breakdown insurance and not backed by the original vehicle’s manufacturer.
Additionally, it’s important to remember that an independent retailer may also have a sharp focus on high-quality vehicles. For example, there might be a used-car lot that sells only European imports that are 5 years old or less. Some of these lots also have a service staff on the premises, and that’s good news for prospective buyers.
Read Reviews
If you’re unsure about the trustworthiness of a dealership, we strongly suggest reading online review sites and reviews at KBB.com. Remember that many reviews are posted by people who have negative experiences. Many people who have a good experience simply consider it business as usual, so there might be a smaller number of good reviews than you’d expect. Still, reviews can be a good way to figure out if a dealer is trustworthy, especially if the dealer in question has dozens of negative ones.
Unsure? Schedule a Mechanical Inspection
If you’re not completely sold on the condition of the car or the trustworthiness of the dealer, we strongly recommend getting a mechanical inspection from a dealership or mechanic that specializes in the brand of car that you’re thinking of buying. Make sure that it isn’t the dealership where the car is for sale; that dealer has a financial incentive to return a positive inspection.
In the end, a mechanical inspection might just be the only way to ensure the quality of the used car you’re considering getting. Even then, a car might develop a problem soon after you buy it. Buying a CPO car means that some of the worry concerning reliability has been removed because there’s a warranty of some kind. It’s a simple reality of used cars, however, that they might end up being troublesome, and it often has little to do with whether they’re at a name-brand dealership or an independent one. Our advice: Pick the car you want, and don’t worry about the dealership. But always get a mechanical inspection just to be sure.
I love Doug’s YouTube reviews and am glad to see the great success he’s having with Cars and Bids and I generally agree with this article except that he’s not as harsh on the independent guys as my experience would lead me to be. It appears to me that a significant percentage of non-branded dealers show marginal interest in their reputations and zero compunction about hiding problems with their vehicles, or fabricating the history of a vehicle and verbally claiming that they will take care of any mechanical issue that crops up later, all while claiming to be family-run and family-oriented, yaddi yadda. Unfortunately, they may be intentionally catering to a lower income bracket, folks that might not be inclined to put up a fight by dragging the dealer into a claims process. Not much pushback if your victims aren’t likely to have the means to pursue action.
Yes, there are some who are members of the community in good standing, have nicer vehicles and generally try to maintain the type of reputation that branded dealerships seek, as Doug mentioned, but the guys on lots on back streets with junkier cars, slovenly, unresponsive sales staff, shady behaviour and an unmitigated reluctance to allow for an independent pre purchase inspection…you takes your chances my friends. And don’t let guys on clean lots with bright lights, well dressed slick talking salesmen fool you either, a lot of them fall into this category as well. I should note that even dealers established as reputable sellers on Bring a Trailer and Cars and Bids may have some of these bad reviews too; perhaps only the vehicles they offer up on those websites are in good enough condition to pass muster? You can certainly find nice looking vehicles on independent lots with glowing write-ups and the promise of a great service history, offered at lower prices than the bidding sites command but I suspect that’s because the dealer has no desire to subject himself to the kind of scrutiny those sites bring; much easier to sell junk to an individual than on a public forum. I think it strains credulity to suggest that there’s a single dealer in America that isn’t aware of all bidding sites and how they operate. Discerning buyers will roast him for half-answers and undocumented revelations about vehicle condition. On occasion, it’s amusing to see new (to the site) unbranded dealers find themselves getting defensive in very short order, often right before the tap dancing ensues. Should have done their crowd research, methinks.
Take 10 minutes and surf the types of horror stories people have endured at the hands of these incorrigible people. If the reviews are to be believed, the nature of the behaviour of some these dealers is what is so horrific, no value placed on avoiding human suffering and its astounding that they can treat people that way. I think you’ll find that the brand name dealers are a lot safer when it comes to used vehicles because their reputations are of paramount importance to them. That’s not to suggest that they don’t employ some of the underhanded methods by which used car salesmen built their reputations; you should still get a PPI done if you lack the skills to evaluate it yourself and do some basic research on the model(s) you are interested in purchasing. Some common sense, a little focused research and a healthy dose of skepticism might have helped the folks who put up the poor reviews. I find it simply amazing that so many people spend vast amounts of time surfing the internet for frivolous entertainment, yet show little ability to take advantage of the wealth of helpful information it can and does provide.
My $.02 notwithstanding the fact that I may have painted with a very broad brush here but it’s based on my observations and my opinion that shady dealers deserve no quarter.
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