Franchise vs Independent Used Car Dealers Compared

In our grades, franchise dealers land an F far less often than independent used car lots, but plenty of independents earn an A.

Two Kinds of Car Lot

A franchise dealer sells new cars for a brand like Toyota, Ford or Honda. It also sells used cars, often trade ins. An independent lot sells only used cars and has no brand behind it.

Both kinds sell used cars every day. Both can be great or bad. But in our dealer directory they grade quite differently.

What the Grades Show

Among graded franchise dealers, 80 percent earn an A or a B. Only 2 percent get an F.

Among graded independent used lots, 58 percent earn an A or a B. 19 percent get an F.

So an F is far more common on an independent lot. The top grade is a closer race, though. 26 percent of franchise dealers earn an A. So do 21 percent of independent lots. The big split is at the bottom, not the top.

The grades come from public reviews only. You can read how they work on our grading page.

Why Franchise Stores Might Grade Steadier

Our data shows the pattern. It does not show the cause. Still, there are some common reasons people give, and they are worth knowing.

• A brand watches its dealers. Carmakers often track buyer scores and can push a store to fix problems.
• Franchise stores have a service department. A buyer with a problem after the sale has a place to take the car.
• Many franchise stores sell certified used cars through the brand. Those cars go through a brand checklist and often carry some added coverage.
• Franchise stores tend to be bigger and have been around a long time. They have more to lose from a bad name.

None of these is proven by our grades. They are just the usual ideas behind the gap. A franchise store can still treat you badly, and some do.

Many Great Independents Exist

It would be a mistake to skip every independent lot. 21 percent of them earn an A, which is close to the franchise rate. Many small lots are run by people who care about their name in town. They often have lower overhead and can price cars well.

The risk is that the range is wider. The best independents are as good as anyone. The worst are much worse than the worst franchise stores. That is why you need to check the one you are dealing with, not the kind of lot it is.

Independents also sell cars a franchise store may not want. Older cars, high mileage cars and cheap first cars often end up on small lots. Those cars can be good buys. They also have more years of wear, so the condition of each one matters even more.

Price, Choice and Speed

A franchise store often has more cars of its own brand and more newer cars with low miles. Prices can be higher, and the finance office tends to offer more add ons. An independent lot may have a wider mix of makes and lower prices, but less backup if the car has trouble.

Neither is always cheaper. Compare the out the door price, not the sticker. Fees can close the gap fast. Our guide to car dealer fees shows what to watch for.

How to Shop a Franchise Dealer

Look up the grade and read the recent one star reviews. See if the complaints are about sales, service or finance. Those can be different teams under one roof.

Ask if the car is certified by the brand or just a used car on the lot. Those are not the same. Our guide to certified used cars explains the difference. Watch the finance office for add ons you did not ask for. Read every line before you sign.

How to Shop an Independent Lot

Check the grade and the review count. A lot with few reviews has less of a record to lean on. Read how the lot answers complaints, if it does.

• Ask where the car came from, such as a trade in or an auction.
• Ask if the car is sold as is, and read the window sticker.
• Ask who you call if something goes wrong in the first week.
• Ask for a history report, and read it yourself.

Then have the car checked by someone who does not work for the lot. A good independent will say yes to that without a fuss.

Either Way, Check the Car

A grade is about how past buyers felt. It says nothing about the car in front of you. Our used car inspection covers 122 points, a full OBD-II scan with readiness monitors, a road test, and tire and brake measurements. We come to the lot, and you get the report the same day.

Common Questions

Get the Car Inspected