Franchise Car Dealerships

Dealerships come in many different shapes and sizes. Each type of car dealership can operate in slightly different ways in terms of their inventory, services offered, vehicle selection, and approval requirements, among other things.

What is a Franchise Car Dealership?

A franchise car dealership is a type of business that is authorized by a car manufacturer to sell and service their vehicles. Usually, these dealerships will be tied to a specific make or group of manufacturers such as Ford, Toyota, or CDJR (Chrysler, Dodge, Jeep, Ram). Franchises are typically located in high-traffic areas, such as shopping malls or busy intersections, in order to maximize exposure to potential customers.

In addition to selling new cars, franchise dealerships also offer used cars, parts, and service. Some franchise dealerships are owned by the car manufacturer, while others are independently owned and operated.

Franchise Dealers vs Independent Dealers

As opposed to franchise dealerships, which are typically part of a larger chain and sell cars from a specific manufacturer, independent dealerships are not affiliated with any particular manufacturer, so they often sell a variety of makes and models.

Pros & Cons of Buying from a Franchise Car Dealer

Benefits

• Often have a large selection of cars on their lot
• Access to more financial resources, which can be helpful if you’re looking to finance a car
• Access to exclusive deals and incentives from the car manufacturer
• Must adhere to strict quality standards set by the manufacturer, which can provide peace of mind for customers

Drawbacks

• May be more expensive than other types of dealerships
• Can be less flexible than independent dealerships when it comes to negotiating a better deal
• Being that franchise dealerships are typically much larger, they can offer less of an intimate car-buying experience and one-on-one support from dealership staff.

When working with either dealership type, you can discuss their financial resources and consider getting preapproved for financing.

Why Choose a Franchise Dealership?

When considering a franchise dealership, it is important to do your research to ensure that you are getting the best possible value for your money. Each dealership type has its own unique advantages and disadvantages, and each car buyer’s situation is unique.

The most important thing in your car buying journey is that you’re informed and consider your options. That’s why we’re here to help you along the way in navigating the car buying process, especially if you have less-than-perfect credit.