Purchasing a used car can be an overwhelming experience, especially when it comes to choosing the right type of dealership – because as our guide to used car dealers in the UK shows, not all dealers are the same.
In the UK, you’ll find a variety of different types of used car dealers, each with unique features, advantages, and potential drawbacks.
Knowing the differences between them can make all the difference to finding the right car that fits both your budget and lifestyle. In this guide, we walk you through the main types of used car dealers you’re likely to encounter in the UK.
1. Franchised Dealers
Franchised dealers operate under the banner of a particular car manufacturer and are authorised to sell their vehicles, both new and used.
Effectively, this gives them an official stamp of approval from the brand they represent, and their showrooms often display the latest models alongside ‘approved’ pre-owned vehicles.
Key Features
- ‘Approved Used’ Programmes: One of the biggest benefits of buying from a franchised dealer is access to ‘Approved Used’ programmes. These cars should have undergone strict checks and usually come with a manufacturer-backed warranty. The certification process often involves a multi-point inspection, giving you confidence in the vehicle’s quality and reliability. But the word ‘should’ is very relevant and sadly not all franchised UK car dealers follow the rules.
- Warranty: You will often receive an extended warranty with your purchase, which can cover everything from minor issues to major repairs. This is particularly valuable for buyers who want peace of mind and minimal risk.
- Higher Prices: Franchised dealers tend to have higher prices than independent dealers or car supermarkets. This is partly because of the additional services they offer, such as extended warranties, and partly because you’re paying for the brand association. However, many buyers see this premium as worthwhile for the extra peace of mind, so it depends what’s most important to you.
- Limited Stock Range: Since franchised dealers are tied to a specific brand, your options in terms of makes and models will be limited. However, the quality of the cars in stock is generally high and these vehicles are often better maintained compared to those at other types of dealerships.
Example
if you’re in the market for a Porsche, visiting a franchised Porsche dealer means you’ll find models that have been checked by Porsche technicians. You can expect the highest standards, but you may also find prices higher than other sources.
The benefit, though, is that you’re paying for the manufacturer’s assurance, which often includes perks like roadside assistance and a comprehensive service history.
Buyer Top Tip
When buying from a franchised dealer, don’t be afraid to ask for a detailed report of the inspection that was done on the car. Franchised dealers should be able to provide you with a checklist of all the work that was carried out and any issues the car had that were fixed before it was put on sale.
2. Independent Dealers
Independent car dealers operate without ties to any one manufacturer, which means they have a much broader range of vehicles available.
These dealers can range from a small operation with just a handful of cars to larger enterprises with a variety of models on display. Because they aren’t restricted to a single brand, independent dealers often offer a more diverse selection of vehicles.
Key Features
- Wider Selection: Unlike franchised dealers, independent dealers can stock a wide variety of makes and models, from budget city cars to luxury SUVs. This variety makes it easier to compare different brands and models in one visit, which can be particularly useful if you’re unsure of exactly what you want.
- Competitive Pricing: Independent dealers usually have more flexibility in their pricing than franchised dealers. They tend to offer more competitive prices, partly because they don’t have the same overheads or brand restrictions as franchised dealers. However, this does mean that cars may not come with the same warranties or aftercare options.
- Quality Varies: One of the potential downsides of buying from an independent dealer is that the quality of the cars can vary significantly. Some independent dealers offer excellent vehicles that are carefully sourced and prepared, while others may cut corners. It’s crucial to thoroughly inspect the vehicle and check its history before making a purchase.
Example
Visiting an independent dealer like Big Motoring World, which specialises in a variety of brands, gives you access to a much wider range of vehicles.
You may find everything from a Nissan Qashqai to a Porsche Cayenne, with prices often more competitive than franchised dealers. However, you will rarely get the same level of warranty or post-sale service.
Buyer Top Tip
When dealing with independent dealers, always ask for a full vehicle history report (such as an HPI check) to ensure the car hasn’t been involved in any serious accidents, isn’t stolen, and doesn’t have any outstanding finance on it. Also, see if the dealer offers any form of warranty or extended service plan, as these can add value to your purchase.
3. Car Supermarkets
Car supermarkets are high-volume dealerships that operate similarly to large retail chains that you’d find in other sectors.
These outlets stock a huge range of cars and focus on quick sales. The business model is built on moving as many cars as possible, often with a no-frills approach to customer service.
Key Features
- Massive Selection: Car supermarkets are often your best bet if you want to browse a huge selection of vehicles in one location. These businesses aim to have something for everyone, from budget-friendly runarounds to more luxurious options. This variety can be helpful if you’re still deciding what car to buy.
- Fixed Pricing: Most car supermarkets operate on a fixed-price model, meaning the price you see is the price you pay. This can simplify the buying process and remove the pressure of haggling. However, it also means there’s usually no room for negotiation, which can be frustrating for buyers hoping to strike a deal.
- Stock Quality Can Vary: While car supermarkets generally provide a vast range of vehicles, the quality can vary. Some focus on volume over quality, so it’s essential to check the car thoroughly and ask about the inspection process. However, many car supermarkets do offer extended warranties, which can add extra peace of mind.
Example
A well-known car supermarket like Cargiant in London holds thousands of cars at any given time, with options for every budget. You can expect to find a wide array of models, from a Ford Fiesta to a BMW 3 Series, but the focus on volume means you may need to be extra careful in inspecting the car before purchase.
Buyer Top Tip:
Because car supermarkets work on a high-volume basis, it’s important to carefully inspect each vehicle before committing.
Don’t assume that because the car is being sold through a large retailer, it’s been thoroughly checked. Take the time to review the vehicle history and inspect the car’s condition.
4. Online Dealers
The digital revolution has made its mark on the car-buying industry, with more and more people turning to online dealerships to find their next vehicle.
Online dealers like Cinch and Carwow offer a range of vehicles that can be bought entirely online, with the car delivered to your door.
Key Features
- Convenience: Perhaps the biggest draw of online dealerships is the convenience they offer. You can browse thousands of vehicles from the comfort of your home, compare prices, and even arrange financing — all without stepping foot in a dealership. Many online dealers also offer home delivery services, which adds to the convenience.
- Advanced Search Tools: Online platforms typically offer more helpful search tools that allow you to filter results by make, model, mileage, price, and more. This can make it easier to find the exact car you want without having to visit multiple dealerships.
- Returns and Guarantees: Most online car dealers offer a return policy, typically allowing you to return the car within a certain timeframe if you’re not satisfied. This takes some of the risk out of buying a car sight unseen, but it’s important to check the terms and conditions carefully, as the return process may involve some costs.
- No Test Drives: The biggest downside of buying a car online is that you don’t get to test drive it before you buy it. While most online dealers offer detailed videos and photos of the car, nothing quite compares to sitting behind the wheel yourself. For many buyers, this is a significant disadvantage.
Example
With Cinch, you can choose from a wide range of vehicles, from economical city cars to family SUVs, and have your car delivered to your home within days.
They offer a 7-day money-back guarantee and a 90-day warranty, giving buyers confidence in their purchase, even without a test drive.
Buyer Top Tip
Always read the fine print when buying from an online dealer. Look out for any hidden fees related to delivery or returns, and make sure you understand the warranty options available. If possible, arrange to see the car in person before finalising the purchase.
Guide to used car dealers: who should you pick?
Choosing the right type of used car dealer in the UK can make all the difference in your car-buying experience. Franchised dealers offer peace of mind with certified pre-owned programmes and comprehensive warranties but tend to be more expensive.
Independent dealers provide more variety and competitive pricing, though the quality can vary. Car supermarkets give you a vast selection but may lack the personal touch or detailed checks of smaller dealers. Finally, online dealerships offer unmatched convenience, but buying a car without a test drive can feel risky.
Ultimately, the best dealer for you depends on your priorities. Whether you value convenience, variety, or aftercare, there’s a dealership type in the UK that will meet your needs.
And if the idea of navigating the car-buying process alone feels daunting, Palmdale Car Finders is always here to help make the process as smooth and stress-free as possible.
Click here to find out how we can help you buy a used car