Lithia Group operates one of the largest automotive retail networks in the United States, with hundreds of dealerships selling new and used vehicles across multiple brands

Lithia Motors, Inc. is a publicly traded company that owns and operates dealerships under various brand names, including Lithia, Drivetime, and Atg (formerly Atg Auto). The company does not manufacture vehicles — it buys inventory from manufacturers and sells directly to consumers through its dealership locations. Understanding how Lithia's structure works matters because it affects pricing, financing terms, warranty coverage, and your recourse if something goes wrong after purchase.

Lithia dealerships operate in most U.S. states and sell vehicles from major manufacturers like Ford, Toyota, Honda, Chevrolet, BMW, and others. Each dealership location is independently managed but follows corporate policies set by Lithia Motors headquarters in Medford, Oregon. This means your experience at one Lithia dealership may differ from another, though core policies around financing, trade-ins, and return windows tend to be consistent.

Key Takeaways

  • Lithia Group owns hundreds of dealerships under multiple brand names, but each location operates with some independence in pricing and inventory decisions.
  • Financing through Lithia dealerships typically involves third-party lenders, not Lithia itself, so your loan terms depend on your credit and the lender's requirements.
  • Most Lithia dealerships offer a return or exchange window of three to seven days, though this varies by state law and the specific dealership.
  • Warranty coverage depends on whether you buy new or used and which manufacturer backs the vehicle, not on Lithia's policies alone.
  • Disputes with a Lithia dealership may be resolved through the dealership's complaint process, your state's attorney general, or the Better Business Bureau.

Lithia's Dealership Brands and What They Sell

Lithia Motors operates dealerships under several distinct brand names, each serving different market segments. The Lithia brand itself represents the majority of locations and typically sells new vehicles from mainstream manufacturers. Drivetime focuses on used vehicles and serves buyers with lower credit scores or limited down payment funds. Atg Auto (formerly Atg) also specializes in used inventory and operates in select markets.

The brand name on your dealership's storefront does not change the underlying corporate ownership or policies, but it does signal the dealership's primary focus. A Lithia-branded location near you may sell new Fords and used trade-ins, while a Drivetime location in the same area focuses on used vehicles with in-house financing. Checking which brand operates in your area helps you understand what inventory and financing options that specific location will have.

How Financing Works at Lithia Dealerships

Lithia dealerships do not lend money directly. Instead, they arrange financing through third-party lenders — banks, credit unions, and finance companies — and handle the paperwork on your behalf. This means your interest rate, loan term, and monthly payment depend on your credit score, income, down payment, and the lender's policies, not on Lithia's decisions alone.

When you finance a vehicle at a Lithia dealership, the dealership submits your process to multiple lenders and presents you with the best offers they receive. The dealership earns a commission if you accept financing through one of their partner lenders. This structure creates an incentive for dealerships to present favorable terms, but it also means rates vary based on your creditworthiness. Buyers with excellent credit may receive rates in the 3 to 5 percent range, while those with poor credit may see rates of 10 percent or higher.

You have the right to bring your own financing to any Lithia dealership. If you find a loan from your bank or credit union before visiting the dealership, you can use that loan to purchase the vehicle instead of accepting the dealership's financing offer. This option is worth exploring if you have an established banking relationship or if you want to compare rates outside the dealership's network.

Return and Exchange Policies at Lithia Locations

Most Lithia dealerships offer a return or exchange window that allows you to return or swap a vehicle within a set timeframe after purchase. This window typically ranges from three to seven days, though the exact policy varies by dealership and state. Some Lithia locations advertise a "no-hassle" return period, but the terms — including mileage limits, condition requirements, and whether you get a full refund or credit toward another vehicle — differ.

Before signing paperwork, ask the dealership for its return policy in writing. Specifically, find out whether the window is three days or seven days, whether there is a mileage limit (such as 250 miles), whether the vehicle must be in the same condition as when you drove it off the lot, and whether you receive a cash refund or only a credit toward another purchase. State law also affects these policies; some states mandate a minimum return period, while others allow dealerships to set their own terms.

If you want to return a vehicle, contact the dealership as soon as possible. Delays in notifying the dealership can work against you, especially if the mileage or condition changes. Document the vehicle's condition with photos if you think you may return it, and keep all paperwork and keys in good order.

Warranty Coverage for New and Used Vehicles

Warranty coverage at Lithia dealerships depends on the vehicle's age and manufacturer, not on Lithia's own warranty program. New vehicles come with the manufacturer's warranty — typically three years or 36,000 miles for basic coverage and five years or 60,000 miles for powertrain coverage. This warranty is the same whether you buy from Lithia or from any other dealer selling that brand.

Used vehicles sold by Lithia may come with a manufacturer's remaining warranty if the vehicle is still within the original coverage period. Many Lithia dealerships also offer extended warranties or service contracts that you can purchase at the time of sale. These are optional and add to the vehicle's cost. Read the terms carefully — extended warranties often exclude certain repairs, have deductibles, and may require you to use specific repair shops.

If a vehicle develops a defect covered under warranty, you can take it to any authorized dealer for that manufacturer, not just to the Lithia location where you bought it. The manufacturer, not Lithia, is responsible for honoring the warranty. Lithia's role is to sell you the vehicle and help you understand what coverage applies.

How to Resolve Disputes With a Lithia Dealership

If you have a problem with a vehicle purchased from Lithia or a dispute over pricing, financing terms, or the return policy, start by contacting the dealership's management directly. Most dealerships have a sales manager or general manager who can review your complaint and authorize a resolution. Put your complaint in writing — email or a letter — so there is a record of what you reported and when.

If the dealership does not resolve the issue to your satisfaction, you can file a complaint with your state's attorney general office, which oversees consumer protection and dealership licensing. You can also file a complaint with the Better Business Bureau, which maintains records of dealership complaints and may facilitate resolution. Neither agency can force a dealership to refund your money, but complaints on record can pressure dealerships to act and may help other consumers understand the dealership's practices.

If the dispute involves financing, you may also file a complaint with the Consumer Financial Protection Bureau (CFPB), a federal agency that oversees lending practices. The CFPB cannot resolve individual disputes but investigates patterns of unfair or deceptive practices and can take action against lenders and dealerships that violate consumer protection laws.

Pricing and Trade-In Practices at Lithia Dealerships

Lithia dealerships price vehicles based on market conditions, local demand, vehicle condition, and mileage — the same factors any dealership uses. Prices are not set by Lithia's corporate office; each dealership sets its own prices based on its inventory and sales goals. This means the same model and year vehicle may cost different amounts at different Lithia locations, and comparing prices across dealerships is a normal part of shopping.

When you trade in a vehicle, the dealership appraises it and offers you a value. This trade-in value is negotiable, just as the price of the vehicle you are buying is negotiable. The dealership's appraisal is an estimate based on the vehicle's condition, mileage, and market demand. You can request a detailed explanation of how the dealership arrived at its offer, and you can shop the trade-in value at other dealerships if you want a second opinion.

Some Lithia dealerships offer online pricing tools or trade-in estimators on their websites. These tools provide a starting point for negotiation but are not binding offers. The final price and trade-in value are determined when you visit the dealership and the vehicle is inspected in person.

Frequently Asked Questions

Can I buy a vehicle from Lithia online and have it delivered?

Many Lithia dealerships offer online purchasing and delivery options, though availability varies by location and vehicle type. Contact your local Lithia dealership to ask whether they offer this service, what the delivery fee is, and how long delivery takes. Some dealerships deliver within a certain radius of their location; others may have broader delivery areas.

What happens if I have a mechanical problem with a used vehicle after the return window closes?

If the vehicle is still under the manufacturer's warranty, you can take it to any authorized dealer for that brand and the manufacturer covers the repair. If the warranty has expired, you are responsible for repair costs unless you purchased an extended warranty or service contract. Check your paperwork to see what coverage applies to your specific vehicle.

Does Lithia offer any special financing programs for first-time buyers or people with bad credit?

Lithia dealerships work with multiple lenders, including some that specialize in lending to buyers with lower credit scores. Drivetime locations, in particular, focus on serving buyers with limited credit history or past credit problems. Rates and terms vary based on your credit and income, so it is worth visiting a dealership to see what offers you receive.

Can I negotiate the price at a Lithia dealership?

Yes. Lithia dealership prices are negotiable, just as they are at any other dealership. The advertised price is a starting point. You can make a lower offer, and the dealership can counter. Negotiation is standard practice in vehicle sales.

What should I do if I believe a Lithia dealership treated me unfairly?

Contact the dealership's management first and explain your concern in writing. If they do not resolve it, file a complaint with your state's attorney general, the Better Business Bureau, or the Consumer Financial Protection Bureau. Keep copies of all paperwork, emails, and records of your communications with the dealership.