Used Car Corner: Do Small Car Dealerships Have Inferior Cars?

Drive by new car dealers and used car dealers and it's hard not to notice the difference. The new car dealer typically has a much larger building and lot, as well as nicer furnishings inside and out. The used car dealer, meanwhile, will likely have a smaller facility, a less luxurious showroom and a dearth of manicured real estate. So of course, the new car dealer will have better used cars, right? Don't be so quick to answer that...
In most cases, yes, the new car dealer will have better cars because they usually only keep the nicer trade-ins and sell the others to wholesale dealers. They also typically have the facilities to tend to any problems a given car may have while they recondition it and ready it for sale. But they also buy from auctions, just like many used car dealers. This is not necessarily a good or bad thing; it's just another source of potential inventory for the dealers. Many auction cars are former rentals or former lease vehicles that likely have been well maintained. And of course, there are exceptions to the picture I just painted, as Carmax boasts showrooms and lots that mirror those of the new car dealers.
That all said, I know that one of the nicest cars I ever owned -- a 1988 Toyota MR2 Supercharged with only 44k miles and in mint original condition -- I found at a rather nondescript, small used car lot. Up until that time, I thought those lots were hokey, and owned by guys that couldn't care less about the cars or the customers. A used car dealer could be just like you and I, checking out the classifieds for a nice car that he knows he'll have little trouble selling.
As always, whether you're considering a given car from a new or used car dealership, it's a good idea to get a Carfax report and, especially if it's an older, higher-mileage car, even pay a mechanic to thoroughly check it out.
- Posted by
- John DiPietro October 29, 2009, 2:30 PM
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- Car Buying, Used Car Corner, Used Cars





If you're looking for a cheap (sub $8K) car, I think you're better off with the little guys. There's not enough margin on cheap cars to keep the big guys happy. They leave them for the little guys.