Used car dealerships have evolved dramatically from the stereotype of the latter part of the 20th century. As customers become more sophisticated and the market more sophisticated, used vehicle suppliers have become more specialized to meet their demographic and area requirements. Various business models were adopted as the industry expanded and competition increased.
Distributor Types
Used car dealers can be divided into different classes according to the characteristics and commercial structure of each operation.
Network companies
These are large nationally syndicated companies that offer affordable transportation options for the local community. Warranties offered are more comprehensive than other options. Vehicles offered are usually of higher quality due to the stricter and standardized controls that are carried out before the sale. Chain operations may not have the same price flexibility due to corporate standards, so you can limit the amount of negotiation that a seller may have in the sales process.
Independent Lots
This type of dealer follows a more traditional used car sales model. A business is usually owned locally and meets community needs. Price flexibility is a key component in this type of operation. Sales staff have more room to maneuver in negotiations, and as a result, consumers can often find much lower prices here than with national syndicated distributors.
The compensation is that the quality of the vehicles is often much lower, and the offered guarantees may be limited both in volume and in length. For those who seek only daily transportation, using the services of an independent mechanic before buying can help a potential buyer make a more informed decision.
Franchising Institutions
The franchise scenario is very similar to a hybrid of business networks and independent lots. The local company is authorized by the national “father” to represent cars under the corporate motto. Since they are locally owned (and not managed by the national company), prices are generally more flexible and can be adapted to the specific needs of the community.
Franchise operations typically offer certified used cars in sevierville and trucks that meet the stringent quality control standards set by the national corporation. However, since they are locally owned, inventory marketing is left to the discretion of the concessionaire / owner to dictate prices and negotiation flexibility. As a result, the franchise model is somewhere in the middle among the distributors mentioned above.
Conclusion
The choice between types of used car dealers is a matter of personal needs for transportation needs. Factors such as price, offered guarantees, brand loyalty, even the dealer’s attitude and reputation, are taken into account when choosing the best place to choose and, ultimately, when buying a used car or truck.
