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How to Buy a Car at a Franchised Dealer

Last updated: 10th Mar, 25
This guide will walk you through the essential steps of purchasing a car from a franchised dealer. From understanding the process to knowing what to look for, we cover key tips and insights to ensure a smooth and informed buying experience.
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Reviewed by Mark Smyth
Automotive writer & journalist with 20 years of experience
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Navigating the car-buying process at a franchised dealer doesn't have to be daunting. These dealerships, representing established manufacturers, offer a wide variety of new and used vehicles, allowing you to tailor your choice to specific needs and preferences. By purchasing from a franchised dealer, you ensure access to official warranties and updates, providing peace of mind and protection for your investment.

It's crucial to know what to expect and how to prepare before stepping into a dealer showroom. Doing your homework on the car's features and comparing different models can help you make an informed decision. Understanding financing options and being ready to negotiate ensures that you can secure a deal that suits your financial situation.

A franchised dealer might be the right choice if you're looking for a seamless buying experience backed by professional service. This guide will walk you through the essential steps, helping to streamline the process and maximise the value of your purchase.

What Is a Franchised Dealer

A franchised dealer is a car dealership that operates under a formal agreement with a specific vehicle manufacturer. These dealers are authorised to sell new cars from that manufacturer. This relationship grants you access to the latest car models and technologies.

At these dealerships, you can find both new and used vehicles. New cars can be customised to your specifications, ensuring you get the features and design you prefer.

Franchised dealerships often offer specialised services such as manufacturer-approved maintenance and repairs. These services ensure that your vehicle is maintained to the brand's standards, enhancing its longevity and performance.

Benefits of purchasing from a franchised dealer include:

  • Access to new model releases and features.
  • Warranties and customer support directly connected to the manufacturer.
  • Certified pre-owned programs providing quality assurance.

When you visit a franchised dealer, you can expect staff trained specifically in the brand's cars. This expertise can help you make informed decisions about which vehicle suits your needs the best.

Typically, the purchasing process will include detailed information about financing options, trade-in opportunities, and any promotional deals offered by the manufacturer. These options can simplify and enhance your buying experience.

The Benefits of Purchasing a Car From a Franchised Dealer

Purchasing a car from a franchised dealer offers numerous advantages, such as access to manufacturer warranties and certified pre-owned programs. These dealers also provide the latest models and maintain high standards. Additionally, you can benefit from professional service departments, flexible financing options, trade-in possibilities, and ensure compliance with regulatory standards.

Manufacturer Warranties

Franchised dealers offer comprehensive manufacturer warranties for new cars, safeguarding your purchase from unexpected problems. These warranties typically cover components and mileage, ensuring peace of mind throughout ownership.

In case of defects, repairs are covered without extra cost, saving you money. Such coverage often includes extended warranties that can be tailored to suit your needs. Buying from a franchised dealer guarantees not only top-class vehicles but also reliable protection.

Certified Pre-owned Programs

When buying a used car, franchised dealers provide certified pre-owned (CPO) programs. Vehicles under these programmes undergo extensive inspection and refurbishment to ensure excellent condition.

CPO vehicles usually come with added benefits such as extended warranties and detailed vehicle history reports. This ensures your purchase is both reliable and backed by the manufacturer’s quality standards, ultimately giving you greater confidence in your investment.

Latest Models Availability

Franchised dealers have access to the latest models direct from car manufacturers. This means you can choose vehicles with the newest features, technologies, and safety enhancements.

You can also customise your new car with preferred specifications, like colour and trim options. By buying through a franchised dealer, you stay up-to-date with the most innovative designs and performance standards available.

High-Quality Standards

The vehicles sold at franchised dealers adhere to high-quality standards set by the manufacturers. This ensures a consistent level of reliability and performance that independent sellers may not guarantee.

The cars undergo professional inspections and quality checks before they hit the showroom. Purchasing from these dealers gives the assurance of a meticulously maintained vehicle, whether it's new or used.

Professional Service Departments

Franchised dealerships come equipped with professional service departments, staffed by technicians trained directly by car manufacturers.

These experts use genuine parts and have extensive knowledge of specific makes and models. This ensures your vehicle receives the highest standard of care and maintenance, allowing it to perform optimally over time, reflecting the best in terms of both longevity and efficiency.

Financing Options Through Manufacturers

Many franchised dealers offer attractive financing options directly through the manufacturers. These terms can include lower interest rates or flexible repayment plans, making a vehicle purchase more manageable.

Options may vary depending on creditworthiness, but generally provide opportunities for competitive deals and the convenience of handling finances directly through the dealership’s finance department.

Trade-in Options

Trading in an existing vehicle is often easier through a franchised dealer. They offer accurate evaluations of your current car and can provide competitive trade-in values.

This simplifies the purchasing process when upgrading to a new or certified pre-owned vehicle. By trading in through a dealer, you can offset the cost of your next purchase, streamlining your buying experience.

Regulatory Compliance

Franchised dealers comply with standard regulations and legal requirements, which provide added security during your buying process.

Such compliance ensures honesty and transparency in sales contracts and terms. This protects you from unforeseen legal issues or hidden costs, bolstering confidence that your transaction is legitimate and straightforward. Agreements are clear, aiming to ensure long-term satisfaction with your vehicle purchase.

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Are Prices Negotiable at Franchised Dealers

When shopping for a car at a franchised dealer, you can expect some price flexibility, especially on used vehicles. While new cars generally have less room for negotiation, dealerships might offer incentives or promotions that can benefit you.

It's essential to do your research. Knowing the market value of the car you're interested in helps you when discussing prices. Websites that list competitor prices can be a valuable tool in your negotiation arsenal.

Consider negotiating extras rather than the vehicle's sticker price. Dealers might be more willing to offer add-ons like extended warranties, free servicing, or accessories at reduced prices.

Timing can also play a critical role. Dealerships often have monthly or quarterly targets to meet. Visiting a dealer at the end of these periods can give you a better chance at negotiating a lower price, as sales teams might be eager to close deals.

Politeness and persistence can be helpful qualities. Forming a good rapport with the dealer might lead to more favourable terms. Aim to build a positive relationship while making your intentions clear.

Always be prepared to walk away. If the prices or terms don't meet your expectations, it's okay to seek alternatives or other dealerships that might offer better deals.

Can I Trade in My Old Car at a Franchised Dealer

Yes, you can trade in your old car at a franchised dealer. Many franchised dealers accept trade-ins as part of their operations. This process allows you to offset the cost of a new or used car by offering your current vehicle as part of the payment.

When you trade in your car, the dealer assesses its condition, age, and market value. After assessment, they'll offer you a trade-in value which you can apply towards the purchase of another vehicle at their dealership. This can make buying a new or used car more financially manageable.

It’s beneficial to research the value of your used car before visiting the dealer. Knowing your car's approximate worth can aid in negotiations and help ensure you receive a fair trade-in offer. Platforms such as AutoTrader or independent online valuation tools can be useful for this purpose.

Trading in your car at a franchised dealer can be a convenient option. It simplifies the process by handling the sale and purchase transactions in one place, potentially saving you time compared to selling the car privately. However, always ensure you understand the terms of the trade-in to achieve the best possible deal.

What Warranties Come With Cars Purchased From Franchised Dealers

When you purchase a car from a franchised dealer, a new car warranty typically comes as a standard feature. These warranties usually cover three years, with some manufacturers offering up to seven years. Keep in mind that mileage limits may apply, often ranging from 36,000 to 100,000 miles depending on the manufacturer.

Franchised dealers may also offer an extended warranty, either through the manufacturer or a third party. These warranties provide additional coverage for a longer period or higher mileage than the standard option. It is essential to carefully review the terms and conditions, as coverage and exclusions can vary significantly.

Most new car warranties cover major mechanical components, such as the engine and transmission, and may also include roadside assistance. Some warranties are more comprehensive, providing coverage for electronics and other non-mechanical parts, but always check specifics with your dealer.

Common Inclusions:

  • Engine components
  • Transmission system
  • Drivetrain parts

Potential Exclusions:

  • Regular maintenance services
  • Wear-and-tear items like tyres and brake pads
  • Damage from accidents or misuse

It's beneficial to verify what specific coverage applies to your purchase and understand the process for making a claim. This way you can ensure that your warranty provides the support and protection you need during your ownership.

Is Financing Available Through Franchised Dealers

When buying a car from a franchised dealer, you will find a range of financing options available. These dealers often work directly with manufacturers and banks to provide you with tailored financial solutions.

Benefits of Dealer Financing:

  • Convenience: Handling everything at the dealership simplifies the process.
  • Flexible Terms: Options like Hire Purchase (HP) and Personal Contract Purchase (PCP) are often available.

Franchised dealers have access to manufacturer-backed finance deals. This can sometimes lead to competitive interest rates or special offers you might not find elsewhere. Additionally, dealer promotions can include zero-percent financing or deferred payment plans.

It is crucial to review the terms and conditions of any finance offer thoroughly. Pay attention to details such as interest rates, hidden fees, and the overall cost of finance. Always compare the dealer's offer with other financial institutions to ensure you are getting the best deal possible.

Can I Test Drive Cars Before Buying at a Franchised Dealer

When purchasing a car from a franchised dealer, a test drive is typically part of the decision-making process. It not only allows you to assess the vehicle’s performance and comfort but also confirms your choice. Most franchised dealers offer test drives as a standard service, allowing you to experience the car before making a purchase.

To arrange a test drive, it’s often necessary to schedule an appointment. This ensures the car you’re interested in is available and that a representative is present to assist you. Dealers may request identification and a valid driving licence, so come prepared with these documents.

In some instances, dealers might ask for a verbal commitment to purchase before allowing a test drive. This practice varies between dealerships, so it’s advisable to inquire about their specific policy. Be open about your intentions and feel free to ask questions regarding any terms or conditions.

During the test drive, pay attention to key aspects such as:

  • Comfort and spaciousness
  • Engine performance and responsiveness
  • Ease of use of controls and technology
  • Overall handling and ride quality

If you require modifications or have special considerations, discuss these with the dealer to ensure they can accommodate your needs. Remember that the test drive is a vital step in confirming that the vehicle meets your expectations before moving forward with a purchase.

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How Do I Check if a Franchised Dealer Is Reputable

When buying a car from a franchised dealer, checking their reputation is crucial. Start by reading online reviews. Look for feedback on their customer service, transparency, and post-sale support on websites like Trustpilot or Google Reviews.

Word of mouth can be invaluable. Ask friends, family, or colleagues about their experiences with the dealer. Personal recommendations often provide honest insights into a dealer's practices.

Visit the dealership to observe their customer service firsthand. Pay attention to how staff interact with customers and handle queries. A respectful and straightforward approach can indicate reliability.

Check if the dealer is licensed and associated with relevant industry bodies, such as the Society of Motor Manufacturers and Traders (SMMT). Membership suggests adherence to certain standards.

Look into the dealer's history. A long-standing presence in the community can be a positive sign, indicating they have built trust over time.

Assess their communication. A reputable dealer should be transparent about pricing, warranties, and any potential issues with the vehicle. Clear and upfront communication is key.

Consider their after-sales support. Quality customer service shouldn’t stop after the purchase. Ask about maintenance services, warranties, and their policy on handling issues that may arise post-purchase.

Compile these findings to get a well-rounded view of the dealership’s reputation. A careful evaluation helps in making an informed decision, ensuring a smoother car-buying experience.

What Should I Bring When Buying a Car From a Franchised Dealer

When preparing for a visit to a franchised car dealer, having the right documentation and items can expedite the buying process and ensure a smooth experience.

  • Identification Documents: Bring a valid form of identification such as your driver's licence or passport. These documents are essential for verifying your identity during the transaction.
  • Proof of Address: You may need to provide a utility bill or bank statement that shows your current address. This helps verify your residency and ensures any paperwork is correctly filled out.
  • Insurance Details: If you've already arranged insurance, bring documentation outlining your policy. Proof of insurance is often necessary before you can drive the car off the lot.
  • Payment Method: Prepare a method of payment, whether it be cash, cheque, or financing options. If you're financing, bring proof of income and any pre-approval letters from your lender.
  • Part-Exchange Documents: If you're trading in your current vehicle, bring the vehicle's registration, service history, and any other related documents. These will assist in getting an accurate value for your trade-in.
  • Questions List: Create a list of questions you want to ask the dealer about the vehicle, warranties, and any financing terms. Being well-prepared ensures you don’t forget important queries during the excitement of the visit.

Having these items ready will help facilitate negotiations and make your car buying experience more efficient and straightforward.

Are There Any Hidden Fees When Buying a Car From a Franchised Dealer

When purchasing a car from a franchised dealer, you're often presented with the sticker price. This is the Manufacturer's Suggested Retail Price (MSRP), which is required by law to be displayed on new vehicles. Despite this transparency, there can be additional fees that might not be immediately obvious.

One common charge is an admin fee, which some dealers add on top of the car's price. This fee can vary significantly between dealerships. It's essential to ask the dealer about these potential charges upfront to avoid surprises.

You might encounter charges related to vehicle registration, taxes, or licensing. These are typically standard and required by state laws, yet they can add to the overall cost. Ensure you understand these costs by asking the dealer for a detailed breakdown.

It's advisable to inquire about any dealer-specific fees, such as delivery fees or handling fees. While some are negotiable, others might be non-negotiable, depending on the dealer’s policies.

Negotiating these fees is often possible, and some dealerships may waive certain charges to close a sale. For more clarity, request that all potential fees be disclosed in writing before you agree to any purchase.

Researching and comparing dealer prices, including all potential fees, can help you make an informed decision. Being aware of these charges upfront allows for better budgeting and a smoother buying process.

How Can I Get the Best Deal at a Franchised Dealer

Start by setting a clear budget. Decide how much you're willing and able to spend on a car, including add-ons, insurance, and running costs. This gives you a solid ground during negotiations.

Research is key. Compare offers from several franchised dealers to identify competitive prices. Use resources like AutoTrader for current deals on specific models.

Consider timing your purchase at the end of a sales quarter. Dealers may be more willing to negotiate as they strive to meet targets.

Prepare to negotiate. Face-to-face discussions often give you leverage. Be ready to make a stronger case with any lower prices you find.

Explore financing options. Franchised dealers often offer manufacturer financing, which may include attractive rates or incentives for specific models or terms.

Inspect any additional fees listed in the contract thoroughly. Ask questions about anything unclear to ensure you're not paying for unnecessary extras.

Taking a test drive is crucial. This provides insight into the car's performance and lets you confirm it fits your requirements.

Get any agreements in writing. Ensure all terms are documented to avoid potential misunderstandings later.

Review the warranty and after-sales service. These aspects can add significant value and peace of mind to your purchase.

Make sure to check for special offers or discounts. Dealers often have limited-time promotions that can reduce your expenses.

What Types of Cars Can I Find at a Franchised Dealer

Franchised dealers represent major car manufacturers, allowing you to find a variety of both new and pre-owned vehicles. They are the primary source for purchasing a new car, enabling you to choose the exact specification, trim, and colour to suit your preferences.

A new car from a franchised dealer often includes the latest models equipped with modern features and technologies. These vehicles come with manufacturer warranties and financing options, providing added peace of mind.

For those interested in used cars, franchised dealers typically maintain a selection of high-quality, pre-owned vehicles. These cars undergo thorough inspections and reconditioning processes, ensuring reliability and safety.

Additionally, franchised dealers might offer certified pre-owned vehicles. These are used cars that meet strict age and mileage limits, providing extended warranties and other benefits akin to purchasing a new model. Certified pre-owned cars offer a viable alternative for budget-conscious buyers who desire assurance and value.

Whether you're after the latest model or a reputable second-hand vehicle, franchised dealers can source different options to meet various needs. The ability to order specific configurations for new cars makes them a reliable choice.

The Bottom Line

When buying a car at a franchised dealer, several factors ensure you make an informed decision. It's essential to compare prices and vehicle conditions at both franchised and independent dealerships. This gives you a broader perspective on the automotive market.

Consider the CO2 emissions of the vehicle you're interested in. Lower emissions are not only environmentally friendly but might also save you money on taxes. For a comprehensive decision, ensure you review the MOT history of any used cars. A clean record indicates consistent maintenance and fewer unexpected repairs.

Franchised dealers generally provide more support with warranties and after-sales services. Nonetheless, checking deals at an independent dealer can sometimes lead to cost savings. Ensuring all paperwork is complete and understanding the terms can prevent future headaches.

By staying informed and focused, you can navigate the car-buying process confidently and secure the best deal fitting your needs.

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