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Franchised Dealers Selling Used Cars

By: Scott McBride - Updated: 27 Jul 2010 | comments*Discuss
Franchised Dealers Selling Used Cars

Those in the market for a nearly new car could do worse than visit a franchised dealer. The plush showrooms and slick, professional salesmen will put buyers at ease, but remember that the comfortable surroundings and free coffee come at a price.

Franchised dealers hold franchises from car manufacturers to sell new cars. The glitzy showrooms and smartly turned out receptionists create the perfect ambience to sell the seductive, buffed new motors. The stock of quality used cars is more likely to be found outside in the adjoining yard, but do not expect to be treated like a second-class citizen just because the new cars are too expensive.

The used car market is an important one for franchised dealers. Margins on quality used cars can be better than in the cut-throat world of new car retailing, so it is often the used car business that makes the real money for franchised dealers.

In-Depth Product Knowledge

Of course, franchised dealers tend to specialise in used cars from the manufacturers whose franchises they hold. This makes sense, as they have a steady supply of used stock traded-in by loyal new car buyers, an in-depth product knowledge, dedicated workshops and manufacturer-trained mechanics.

The big dealer groups can have hundreds of cars in stock spread over several outlets, so if a local franchised dealer has not got what a buyer wants, he will probably be able to find it. Franchises tend to stock ex-demonstrator vehicles too, and these are typically low mileage cars that have been used for test drives and can be excellent value for money.

Expect to find only the very best in used cars at franchised dealers. Cars are usually put through a pre-sale inspection and service and will be in top retail condition and backed by a generous warranty. Franchised dealers are backed by manufacturers' approved used car marketing schemes and advertising campaigns and can offer after-sales support and servicing.

Buy With Confidence

The reputation, expertise and professionalism of these dealers will fill the buyer with confidence and there is no doubt that franchised dealers offer the most convenient and civilized way to buy a used car for those willing to pay the premium.

Remember that franchised dealers are selling cars for particular manufacturers, so do not expect impartial advice. Higher profit margins can allow these franchises to offer a more attractive trade-in deal than those given by independent dealers and car supermarkets, but a lot will depend on the car being traded.

If the car is less than two years old and the same make as the cars they are selling, expect a franchised dealer to be interested. This is because he will have a steady stream of customers looking for such a car.

On the flip side, an older car from a different manufacturer will not excite a franchised dealer and he is unlikely to find space on his forecourt for such a motor. These cars will be sold on to independent dealers or taken to auction and the franchised dealer may offer only an auction estimate of the car's worth as a trade-in. Those willing to sell their old car privately should be able to get a better price, so be prepared to turn down a trade-in offer if it is not up to scratch.

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