Overview of Different Dealer Types
There are essentially four different types of car dealers in the Charlotte, NC market.
In recent years many of the New Car Dealerships have changed focus due to the tightening noose of credit availability direct from the manufacturers. Where four years ago the New Car Market was very heavily backed by the financing options of manufacturers, with Chevrolet famously stating that they used to be a car company that offered finance, now we are a finance company who builds cars. As we all know, that balance has started moving back to it's starting point.
As a result, the New Car Dealerships are now much more focused on refurbishing and selling good quality used vehicles, than they are in sending them off to the auction for the traditional Used Car Dealers to fight over. New Car Dealerships have a very strong grasp on financing vehicles in general and will have a number of different outlets which they can call on, depending on the situation that the customer is in.
This change is business model has had quite an impact on the Used Car Market in general, pushing prices up across the board. When you then take into account the number of vehicles which were destroyed under the 'Cash For Clunkers' scheme, there are large gaps in the used car market as a result.
Used Car Dealerships traditionally purchase used vehicles directly from New Car Stores, Auctions and also refurbish and resell trade in vehicles. With the closing of so many of the Franchise dealerships by the manufacturers over recent years, we have no seen a number of those dealerships turn into Used Car Dealerships, who are taking advantage of the cheap rent and perfectly designed spaces.
Used Car Dealerships may or may not be able to help a customer with financing of the vehicle, however the majority of them will be able to point you in the right direction after a number of years in the industry. Many Used Car Dealerships will actually make more money from the financing of a vehicle, than they will from selling the vehicle in the first place. Warranties are another way for them to increase their profit margin.
Buy Here Pay Here dealerships are dealerships who deal specifically with people who have experienced credit issues in the past. Rather than trying to finance customers through the normal routes, they will finance the customer them selves. The term, 'buy here pay here' refers to the customer actually returning to the dealership to make payments on the vehicle. The dealer will normally charge considerably more interest than a traditional bank or lender. This is due to him taking on so much 'risk' by dealing with customers who's credit is damaged and taking on the responsibility of collecting the car if payments are not made.
It is well worth finding a Buy Here Pay Here dealer in Charlotte NC, who will report your timely payments to the relevant Credit Agencies. This can be a fantastic way of rebuilding your credit while getting to drive a vehicle of a high standard.
Car Superstores are growing in popularity as they take away the infamous 'Haggling' process. They generally have a fixed price for every vehicle in stock and they have very, very high standards as to vehicle which they will stock. They often offer in house financing, however you are much more likely to get a preferred rate from your own bank or from a Credit Union.
Vehicles are likely to be less than 5 years old which will of covered approximately 15,000 miles per year. 120 point inspections are common place, as are strong warranties from these dealerships. Due to these companies having many stores, they are more than happy to move vehicles around, even from State to State, with no cost to the customer.
- New Car Dealers
- Used Car Dealers
- Buy Here Pay Here Dealers
- Used Car Superstores
In recent years many of the New Car Dealerships have changed focus due to the tightening noose of credit availability direct from the manufacturers. Where four years ago the New Car Market was very heavily backed by the financing options of manufacturers, with Chevrolet famously stating that they used to be a car company that offered finance, now we are a finance company who builds cars. As we all know, that balance has started moving back to it's starting point.
As a result, the New Car Dealerships are now much more focused on refurbishing and selling good quality used vehicles, than they are in sending them off to the auction for the traditional Used Car Dealers to fight over. New Car Dealerships have a very strong grasp on financing vehicles in general and will have a number of different outlets which they can call on, depending on the situation that the customer is in.
This change is business model has had quite an impact on the Used Car Market in general, pushing prices up across the board. When you then take into account the number of vehicles which were destroyed under the 'Cash For Clunkers' scheme, there are large gaps in the used car market as a result.
Used Car Dealerships traditionally purchase used vehicles directly from New Car Stores, Auctions and also refurbish and resell trade in vehicles. With the closing of so many of the Franchise dealerships by the manufacturers over recent years, we have no seen a number of those dealerships turn into Used Car Dealerships, who are taking advantage of the cheap rent and perfectly designed spaces.
Used Car Dealerships may or may not be able to help a customer with financing of the vehicle, however the majority of them will be able to point you in the right direction after a number of years in the industry. Many Used Car Dealerships will actually make more money from the financing of a vehicle, than they will from selling the vehicle in the first place. Warranties are another way for them to increase their profit margin.
Buy Here Pay Here dealerships are dealerships who deal specifically with people who have experienced credit issues in the past. Rather than trying to finance customers through the normal routes, they will finance the customer them selves. The term, 'buy here pay here' refers to the customer actually returning to the dealership to make payments on the vehicle. The dealer will normally charge considerably more interest than a traditional bank or lender. This is due to him taking on so much 'risk' by dealing with customers who's credit is damaged and taking on the responsibility of collecting the car if payments are not made.
It is well worth finding a Buy Here Pay Here dealer in Charlotte NC, who will report your timely payments to the relevant Credit Agencies. This can be a fantastic way of rebuilding your credit while getting to drive a vehicle of a high standard.
Car Superstores are growing in popularity as they take away the infamous 'Haggling' process. They generally have a fixed price for every vehicle in stock and they have very, very high standards as to vehicle which they will stock. They often offer in house financing, however you are much more likely to get a preferred rate from your own bank or from a Credit Union.
Vehicles are likely to be less than 5 years old which will of covered approximately 15,000 miles per year. 120 point inspections are common place, as are strong warranties from these dealerships. Due to these companies having many stores, they are more than happy to move vehicles around, even from State to State, with no cost to the customer.