What is the Difference Between a 4S Store and an Auto Trading Store?
4 Answers
The differences between a 4S store and an auto trading store include variations in pricing, after-sales service, vehicle sourcing, store setup, and insurance. The specific details are as follows: Price difference: For the same car model, the base price at an auto trading store may sometimes be cheaper than at a 4S store. This is because auto trading stores are secondary dealers, sourcing their cars from 4S stores, effectively acting as sales agents for them. The vehicles they offer come at internal cooperative prices with 4S stores, hence the lower prices. Additionally, auto trading stores do not need to build dedicated showrooms for specific brands, nor do they require significant advertising investments or other expenses, significantly reducing their per-vehicle costs compared to 4S stores. After-sales service difference: Under the new automotive three-guarantee law, regardless of whether a consumer purchases a car from a 4S store or an auto trading store, the seller must bear responsibility for any quality issues with the vehicle. If a problem arises with a car purchased from a 4S store, the 4S store will handle it immediately. If the car was bought from an auto trading store, the store will liaise with a 4S store to resolve the issue. However, the after-sales maintenance service at a 4S store is generally superior to that at an auto trading store. Sourcing difference: 4S stores source their vehicles exclusively from the original equipment manufacturers (OEMs). Each city's 4S stores are agents, paying deposits and fees after preliminary negotiations to qualify for purchasing vehicles from the OEMs. Typically, a 4S store collaborates with only one OEM. In contrast, auto trading stores obtain their vehicles from 4S stores and have no direct connection with OEMs, which is why they are often referred to as secondary networks. Moreover, auto trading stores are not limited to partnering with just one 4S store; they usually collaborate with multiple 4S stores simultaneously. Store setup difference: 4S stores are more formal, usually located in automotive sales hubs with prominent geographical advantages. Their store layouts are more detailed, with clear divisions of labor among departments and strict service processes from entry to exit. Auto trading stores, on the other hand, are much simpler, with no stringent requirements on location or store setup, and they place less emphasis on service and decor. Insurance difference: Some auto trading stores require customers to purchase car insurance in-store, often at relatively high discounts. However, the insurance companies they partner with may be small, potentially leading to claim denials in case of accidents. In contrast, 4S stores offer lower insurance discounts, resulting in higher total insurance costs, but they generally partner with larger, more reliable insurance companies. Additionally, there are several considerations when purchasing a car from an auto trading store: Auto trading stores issue invoices from 4S stores: Since auto trading stores source their vehicles from 4S stores, they are treated as regular consumers by the 4S stores. When an auto trading store purchases a car from a 4S store, it must pay upfront and use the customer's ID to issue the purchase invoice. This is akin to having a friend buy a car on your behalf from a 4S store, which the 4S store acknowledges. Normal warranty coverage: Regardless of where you buy the car, as long as you have a valid purchase invoice, the car is entitled to the standard warranty from the date of invoice issuance. Most cars today come with lengthy warranty periods, ranging from 3-4 years to a decade or more, with some even offering lifetime warranties. Signing a purchase contract: Reputable auto trading stores will sign a purchase contract with customers, detailing the model, price, color, and configuration. Customers can request specific terms in the contract, such as whether the car has any damage or is from inventory, and include these in the agreement. This ensures that any issues can be addressed later with the contract as proof. Financing: If opting for a car loan, it's advisable to use the manufacturer's financial services offered by the auto trading store. Manufacturer financing serves as a primary purchase credential, with lower unnecessary fees and more favorable interest rates compared to banks. Loans from banks or private lenders partnered with the auto trading store may come with significantly higher fees. Choosing a reputable auto trading store: A reputable auto trading store should have a long-standing presence, good reputation, many repeat customers, and comprehensive information.
I previously helped a friend choose a new car and compared the differences between 4S shops and auto traders. Simply put, a 4S shop is a manufacturer-authorized dealer offering one-stop services from sales to after-sales, including new car warranties and professional maintenance, but the prices are higher. Auto traders are often secondary dealers or car merchants, which may offer more flexible pricing, room for negotiation, or even discounts, but they might not have official authorization, unstable car sources, and maintenance could be outsourced to small shops, posing higher risks when buying used cars. If your budget allows, a 4S shop is more hassle-free; if you want to save money, be extra cautious when checking the vehicle history and contract details with auto traders. I once bought a car from an auto trader and saved 5,000 yuan, but ended up spending more on repairs due to maintenance issues. I advise everyone not to just chase low prices. Overall, 4S shops are more reliable but expensive, while auto traders offer flexibility but come with risks.
I think the core difference lies in service and credibility. 4S stores are directly operated or authorized by the brand, with new cars sourced directly from the manufacturer, and after-sales services provided by factory-trained technicians using genuine parts—professional overall but more expensive. Auto traders are more like independent dealerships, possibly selling multiple brands of new or used cars, with negotiable prices but mixed sources, sometimes facing inventory shortages or unclear channels, and maintenance often relying on small shops. From my experience, warranty services are more convenient when buying from a 4S store, while with auto traders, you might have to handle maintenance yourself. Nowadays, many car owners opt for 4S stores for convenience; if saving money is the priority, auto traders are an option, but thorough research on the vehicle's condition and history is essential. In short, the choice depends on your needs: prioritize safety with 4S stores, or save money with auto traders but proceed with caution.
When I first bought a car, I compared these two types of dealers. 4S stores are official, offering comprehensive new car services and original maintenance; auto trading companies are unauthorized dealers, possibly with lower prices but less protection. As a beginner, I chose a 4S store. Although it cost a bit more, it saved me future troubles. I recommend first-time car buyers prioritize safety.
