Differentiate between Franchise Dealers vs. Independent Dealer

Differentiate between Franchise Dealers vs. Independent Dealer

Buying a used car from the Car Dealer and confused whether to go for an Independent or Franchise Dealer then go ahead and read on the blog.

Both have some weaknesses and strengths.

Independent Car Dealers:

An independent car dealer is the one who is not affiliated with any automobile manufacturer. They don’t provide any agreements with the car manufacturers so that they can sell a certain car to anybody. They won’t even mention the name of the manufacturer also because they have no link with the specific car manufacturer.

They don’t sell new cars.

Franchise Dealers:

Franchise Dealer is the one who sells both new and used cars and also includes the manufacturer and brand names. The manufacturer’s name is also mentioned in the details.

They are also known as the new car dealers, used car dealers, and automobile dealers.

Franchise dealer sells the certified new and used cars with the manufacturer name.

They can sell their cars when we talk about certified pre-owned cars.

A Franchise dealer has the authority to sell the cars with brand’s name like Toyota, Mazda, Honda and Nissan.

Here are the Differences:

1.) Age of the Vehicle:

Most of the franchise dealers will offer later models of the used cars whereas the independent dealers will provide the late models of the cars.

2.) Pricing:

When it comes to pricing, franchise Dealers have higher car prices as compared to the independent Dealers.

3.) Service:

Franchise dealers have their technical departments with technicians to works on issues found in the cars. Whereas the independent dealers don’t have the area to work on any kind of issues found in the cars.

4.) Finance:

When we compare both the Dealers then Franchise Dealers have the low-interest rates when we talk about Car Financing whereas, independent dealers have a higher interest rates. But independent Dealers offer financing with excellent credit history.

5.) Options:

Independent Dealers have more used car options as compared to the Franchise Dealers.


Both Independent and Franchise car dealers have pros and cons and it’s up to you what you go for.