Are used cars from branded dealerships better than those from independent used car dealerships?

I’m looking into buying a used car and I’m wondering if there’s a difference in quality when buying from a branded dealership (Toyota, Honda, etc.) versus an independent used car dealership. Do independent dealerships get their inventory from unsold used cars at branded dealerships? I’m curious if I should lean more towards buying from a branded dealer for better quality or if it doesn’t really matter.

I own a small used car dealership, and I can tell you we have access to the same inventory as the new car franchises. In my experience, you can find a good car at either a branded or independent dealer, and you can also find bad cars at both. The key is to do your research. Because I run a small operation with around 40 cars, I put a lot of effort into each vehicle and care about customer satisfaction, which reflects in our reviews. Just go with your gut—if a deal seems too good to be true, it probably is.

@Kaius
Do you have access to closed sales or lease returns?

Back in the day, people used to joke that a dealership’s ‘inspection’ was just the 124-foot drive to the used car lot! But things have improved since then. Brand dealerships have become more professional in how they handle used cars. However, the downside is they often price their used cars higher. For example, I bought a one-year-old 2018 Corolla LE for $13,700 by flying to a different city, while my local dealer was selling the same car for $18,000. So, you might get a better deal by shopping around.

@Cleo
That’s interesting! I’m more curious about comparing, say, a 2016 Tundra with 60,000 km at ‘Toyota of Guelph’ versus one at ‘Wilson’s Motors Used Cars.’ How do independent dealers even get such high-value cars like a $45k Tundra? I always thought people would trade those directly to branded dealerships.

@Arlo
They could have gotten it from an auction or trade-in. Check the car’s history, that might tell you more.

@Arlo
Definitely check the vehicle’s history and its certification status. Typically, branded dealerships offer cleaner examples, and they’re the only ones that can offer Certified Pre-Owned (CPO) warranties. But that doesn’t mean a smaller dealer can’t have a good car too. Just do your research.

@Wilder
Hey! I remember you from years ago, you were super helpful! It’s awesome to see you still around, helping people out!

Arlo said:
@Wilder
Hey! I remember you from years ago, you were super helpful! It’s awesome to see you still around, helping people out!

Thanks! I guess I’m a glutton for punishment, still hanging around here. Good luck with your car search!

@Arlo
I was shopping for crossovers a couple of years ago and considered buying from either a brand dealer or Wilson’s Motors. A friend had issues with a car he bought from Wilson’s, so he warned me to avoid them. It could have just been bad luck, though. One key difference is that brand dealers often offer better financing options, especially with CPO vehicles, which can come with discounted interest rates compared to other used car lots.

To answer your questions directly:

  1. No, branded dealerships aren’t necessarily better.
  2. No, independent dealerships don’t typically get their inventory from unsold cars at brand dealerships.

CPO warranties are one thing branded dealerships can offer, but that doesn’t always mean their cars are ‘better.’ Some non-branded dealers can offer excellent cars with good inspections too.

@Payne
Seems fair. It’s more about how well the dealership is managed and how much effort they put into selecting their inventory.

If you stick around car forums long enough, you’ll see plenty of people who assume that buying a used car from a big brand dealership guarantees a problem-free experience. But in reality, any used car can come with issues, no matter where you buy it from.

Certified Pre-Owned (CPO) vehicles from brand dealers typically undergo more extensive safety inspections and use OEM parts for repairs. Non-CPO used car dealers might cut costs by using cheaper, non-OEM parts. A standard Ontario safety check is 32 points, but a CPO inspection can be around 155 points.

Also, CPO lots can sometimes offer better financing options.

@Orion
Fair point, but even some brand dealers might cut corners. It’s not always guaranteed that CPO cars will have better parts or service.

oddah said:
@Orion
Fair point, but even some brand dealers might cut corners. It’s not always guaranteed that CPO cars will have better parts or service.

I was specifically talking about CPO dealerships. At a CPO dealership, the cars must meet the manufacturer’s inspection criteria or they lose their CPO certification. They won’t risk using non-OEM parts for repairs because that can lead to serious consequences, including losing their CPO license.

@Orion
I understand that, but it’s important to note that CPO isn’t the only way to buy a used car. Not every branded dealership offers CPO, and non-CPO cars can still be decent.

Anecdotally, the nicest used car I ever bought was from a Porsche dealer, even though it was a VW. They seemed to hold on to only the best trades for their lot. But honestly, the quality can vary at any dealership.

Both used car dealerships and brand dealerships get most of their inventory from auto auctions. If dealerships waited only for trade-ins, they’d struggle to keep up with demand. Unsold new cars don’t usually get sent to used car dealers either—they eventually sell at a discount.