Used Cars vs. New Cars

Anyone who is thinking about buying a car has suffered nightmares about being sold a lemon by sleazy used car dealer salesmen. This phenomenon is why many people avoid used car dealerships and opt to shop for new cars instead – even though they may offer comparatively more expensive options for vehicle ownership. There are a host of differences between used car and new car dealerships besides the obvious. For instance, shopping around for used car financing options can be much different than dealership financing.

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Let’s explore some of the main differences below:


New car dealerships are usually held directly accountable for their sales practices to the makers of the cars. This is because they usually operate as a franchise and our bound to strict corporate policies. On the other hand, used car dealerships have a bit more latitude due to the mere nature of their operations. While one is not suggesting that used car dealerships (particularly independent ones) are reckless free for all’s, the truth is, they are likely to deal directly with previous owners of the vehicles and not necessarily the car makers or manufacturers. This increases their flexibility in decision-making and lowering prices.

As far as vehicle maintenance and repair services, independent used car dealerships will sometimes outsource these services to a local garage that they may not have a strong relationship with. This is often true when they offer some type of warranty. Keep this in mind when prioritizing the price of maintenance and repairs. If you have a job that requires lots of travel, you need be aware of what it’s going to take to repair your car from intensive use and ware.

Repairs and maintenance services

Contrary to popular belief, new car dealerships also carry used vehicles by way of CPOs – certified pre-owned cars. CPOs means that the new car dealership is accountable to the manufacturers for the used cars it does sell. The original manufacturer is responsible for repairing and refashioning these CPO vehicles to be resold at the dealership.

In addition to offering CPOs, new car dealers are generally tied to a service and maintenance garage through which they are able to offer client repairs. Conveniently for us, they are expected to meet a certain quality rating before they can be offered up for resale.

Financing and warranty

Another major difference in how used car and new car dealership operate lies in financing options offered to customers. While used car dealers may offer cheaper cars and other vehicles for purchase, new car dealers are likely to offer loan and financing options that customers can make use of.

Why opt for a used car dealership: cheaper costs and a wide range of options

Persons opt to go with a used car dealership for a number of reasons. The primary reason is often financial. Financially, used car dealerships may have cheaper options when compared with new car dealerships as they simply cannot charge the same premium for used and older vehicles. This is true for sales, maintenance, and repair services.

At a used car dealership, people are likely to have a wider range of vehicles to choose from at a wider price range when compared to new car dealerships. Although they are all pre-owned, used cars are not necessarily old cars.

How to use a used car dealership: buyer beware

As suggested prior, a sleazy used car dealership salesman is every vehicles buyer and owner’s worst nightmare. Shopping on a used car lot is very different from shopping for a new car or shopping for a used car on a new car user lot. The dynamics are different. Additionally, there are several kinds of lots including- buy here, pay here lots. Consignment lots and specialty lots operate under a different set of rules or guidelines as well. When buying a used car, one should be careful to verify the following:

Certification and regulation

It is important to check whether or not the independent dealership in question is being regulated. Yes, there are regulatory bodies in many cities and states that can help hold a dealer accountable. One can therefore check to see if such certification or registration with a relevant governing body exists. Even consumer and other relevant business laws and governing agencies may apply in this regard. In other words, a used car dealership is not a law onto itself. Much like other businesses, regulations must be followed. Find out what those regulations are and measure the dealership in question against them.

Track record

Again, as is the case with other businesses, unless you are the first ever customer they have had, any given used car dealership is likely to have a track record. Pay attention. Ask around; look for previous customer reviews online and so forth. Do thorough background tests and do not simply take for granted to assurances of the dealer.