Six Different Kinds of Car Dealerships in Colorado

When motorists shop for new or used cars in Colorado, they're likely to encounter several kinds of auto dealerships. Each type has different pros and cons in terms of warranty coverage, service, selection and pricing. Most Colorado car dealers fit into one of six major categories:

1. New vehicle dealerships usually offer cars from a specific brand or a group of brands associated with the same manufacturer. Most accept trade-ins, so they carry a wide range of used vehicles as well. They tend to guarantee more pre-owned autos than independent dealers. New car lots almost always perform repairs in their own service centers.

2. Independent used auto dealers are free to define their own policies and don't need to meet a franchiser or manufacturer's standards. They frequently pay separate shops to perform warranty repairs. These dealerships often set lower prices than chains and may offer more high-mileage vehicles.

3. Specialized dealers cater to certain types of drivers. For instance, they might only sell high-end, antique or four-wheel drive autos. Other specialty lots focus on motorists with limited income. They set relatively low prices and offer high-interest financing to buyers with poor credit scores.

4. A consignment dealership works the same way as some secondhand shops. People who want to sell their vehicles give them to the dealer. If the lot succeeds in reselling an auto, it pays the original owner a portion of the price. Dealer financing is available. Such businesses can be found in Colorado Springs, Fort Collins and Denver.

5. Used car chains or superstores offer a more predictable experience. Compared to the vehicles at independent lots, their cars tend to remain in better condition and come with superior guarantees. However, prices may be somewhat higher. Two large chains maintain multiple locations in the Centennial State.

6. Finally, used auto franchises combine various aspects of chain and independent dealers. They're affiliated with national car or dealership brands. Many of these locally owned lots provide decent warranties and comparatively low prices. Like new car dealers, they frequently offer high-quality certified used autos.

Drivers choose different Colorado car dealers depending on their budgets, priorities and the types of vehicles they seek. Franchised or independent dealerships generally have more flexibility; buyers can often speak to an owner or someone with decision-making power. On the other hand, the company-wide policies of chains and manufacturers may promote greater quality assurance.