Luxury vs Mainstream Car Dealers Compared

Luxury car dealers earn an A grade in 38 percent of cases, far more than the 21 percent of mainstream brand stores.

What We Compared

We split franchise dealers in our directory into two groups. Luxury stores sell brands like Lexus, Porsche, BMW and Mercedes-Benz. Mainstream stores sell brands like Ford, Toyota, Chevrolet and Honda. Then we compared their grades.

Each grade comes from public reviews. A store needs 20 or more to be graded, and 50 or more to earn an A. The grading page has the full method.

The Numbers Side by Side

• Luxury stores. 38 percent A, 84 percent A or B, 4 percent F.
• Mainstream stores. 21 percent A, 78 percent A or B, 2 percent F.

The big gap is at the top. Luxury stores earn an A much more often. Mainstream stores are more likely to land at B or C. Both groups almost never get an F. That is true of franchise stores in general, where only 2 percent grade F.

So a mainstream store is not a risky place to shop. It is more likely to be good than great. A luxury store is more likely to be great.

Why Luxury Stores May Grade Higher

We cannot prove the reasons. Here are some possible ones.

• Luxury stores may have fewer customers per store, so each buyer gets more time.
• Many offer loaner cars during service, which cuts down on angry reviews.
• Some brands may push a strong service culture and train staff for it.
• Buyers paying more may get more care because the store wants to keep them.

It is also possible that luxury buyers review in a different way. Whatever the cause, the grade shows what past buyers said, and they said good things more often.

Buying a Used Luxury Car From Another Kind of Lot

Plenty of used luxury cars are sold at mainstream brand stores and at independent used lots. A Toyota store takes a BMW on trade. A used lot buys a Range Rover at auction. That is normal.

The catch is that these lots may not know the car as well. A luxury brand store has the tools and training for its own cars. A lot that sells mostly other makes may not. It may not spot a problem that a brand trained tech would catch.

Independent used lots also grade F far more often than franchise stores. In our directory, 19 percent of used lots get an F. Our guide on franchise vs independent used car dealers covers that gap.

Why Luxury Cars Cost the Most to Get Wrong

A used luxury car can look like a bargain. The price has often dropped a lot from new. But the repair costs do not drop with it. Parts are often more expensive. Labor can take longer because there is more packed under the hood.

Many luxury cars have air suspension, turbo engines, complex electronics and big brakes. Each of these can be costly to fix. A warning light that seems small can point to a large bill. A car that has missed its service can hide wear that shows up months later.

This is why a bad used luxury car hurts more than a bad economy car. The same mistake simply costs more to fix.

Some owners also sell a luxury car right when a big service is due, or right after the warranty runs out. That is not always the case. But it is a good reason to ask why the car is for sale and to look for records of recent work.

What to Check on a Used Luxury Car

• Ask for service records. Luxury cars need care on time.
• Scan for stored and pending codes, not just the dash lights.
• Check the tires and brakes. Big wheels and big brakes cost more to replace.
• Test every electronic feature, from seats to screens.
• Watch for a car sold as is with no reason given.

A warning light that was just cleared can hide a real fault. Our post on cleared codes explains how that works and how a scan catches it.

Get It Inspected Before You Buy

Our used car inspection is a 122 point check with a full OBD-II scan, including readiness monitors, plus a road test and tire and brake measurements. We photograph anything we find. We go to the car, you do not have to be there, and the report comes the same day.

Common Questions

Get the Car Inspected