The Different Types of Used Car Dealerships

When you’re shopping for used cars, one of the first things you need to figure out is where you’re looking for them. A dealership is certainly a place, but there’s actually many different kinds of dealerships you could be going to, all with unique advantages and disadvantages that this article will explain.

Licensed Dealerships

These are probably the most common types of used car dealerships in Burlington you’ll see when driving around. These dealerships have an arrangement with a particular car manufacturer like Ford or Jeep and primarily sell new cars from those brands.

However these dealerships will also have a collection of used cars on offer, primarily of the same brand that they specialise in, so if you have a particular brand in mind, a dealership like this could be ideal.

Used cars from a licensed dealership are likely to be certified, meaning there’s less worry about the cars condition but this is at the trade off that cars from these dealerships will on average be more expensive than any other on the list.

Independent Dealerships

This is probably what you’re thinking of when you picture a used car dealership in Burlington. A big lot with lots of different cars of different makes and models to choose from. These businesses have no deals with any manufacturers and make their business by buying and selling used cars.

While the stereotype of the pushy used car salesmen can certainly be true in some dealerships, on average these cars will be cheaper than from the option above, with the trade off that they won’t be certified, which means you could be taking more of a risk buying one.

Low Credit Dealerships

Low credit dealerships are the same as regular independent dealerships in that they buy and sell used cars with one key difference, they also offer financing. With both of the options above to pay for a car you use a third party like a bank to get a loan, but with a specialty low credit dealership they’ll give you the loan and the car.

Places like this are specifically set up for people with poor credit who cannot qualify for bank loans, but lest you think they’re doing it out of the kindness of their hearts, they also give much higher interest rates than the average car loan.

Private Sellers

While it’s debatable if it counts as a dealership, there are people who make their living buying and selling cars from their own home, or simply people looking to sell their car and make some cash.

The primary difference buying a car this way is that you’ll have to pay it all upfront, there won’t be any loans with a private seller, and you’ll have to do any sort of checks yourself to make sure you aren’t buying a dud.

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