What United Auto Group Is and How It Operates

United Auto Group is a publicly traded automotive retailer that owns and operates hundreds of new and used car dealerships across the United States. The company does not manufacture vehicles; instead, it buys inventory from manufacturers and sells it through its network of branded dealerships. If you are shopping for a car at a dealership with a United Auto Group nameplate — such as Asbury Automotive Group locations or other regional chains under the UAG umbrella — you are dealing with a retailer, not a lender or warranty provider.

United Auto Group also owns Drivetime, a used-car retailer that specializes in in-house financing for buyers with lower credit scores. Understanding which division you are working with matters, because the financing terms, warranty coverage, and your recourse options differ significantly between a new-car dealership and a used-car lot with captive financing.

The company generates revenue through vehicle sales, financing arrangements (when it acts as a middleman between you and a lender), service departments, and parts sales. When you buy a car from a United Auto Group dealership, you are entering a transaction with that specific dealership location, not directly with the parent company, though corporate policies do set some standards across locations.

Key Takeaways

  • United Auto Group owns hundreds of dealerships but does not lend money directly; it arranges financing through third-party lenders or captive finance companies.
  • Warranties sold at United Auto Group dealerships are typically underwritten by third-party warranty companies, not by United Auto Group itself, so your coverage depends on the warranty provider's terms.
  • Your purchase agreement, financing contract, and warranty documents are separate legal instruments, and problems with one do not automatically void the others.
  • Drivetime, a United Auto Group subsidiary, offers in-house financing for used vehicles and operates under different terms than traditional dealerships.
  • Disputes over pricing, financing terms, or warranty coverage should be directed to the specific dealership location and the lender or warranty company named in your contract.

How Financing Works at United Auto Group Dealerships

When you finance a vehicle through a United Auto Group dealership, the dealership does not lend you the money directly. Instead, the dealership arranges financing through a bank, credit union, or captive finance company — a lender owned by the vehicle manufacturer or by a third party. The dealership acts as an intermediary, submitting your process and negotiating terms on your behalf.

The dealership earns a fee by marking up the interest rate. If a lender approves you at 5 percent, the dealership may offer you 5.5 or 6 percent and keep the difference. This practice is legal but must be disclosed in your paperwork. Your financing contract will name the actual lender — often a bank or captive finance subsidiary — not United Auto Group.

At Drivetime locations, the model is different. Drivetime often finances vehicles in-house, meaning the company itself is the lender. This allows Drivetime to work with buyers who have poor credit, but it also means higher interest rates and stricter payment enforcement. If you miss a payment at a Drivetime location, you are dealing with Drivetime's collections department, not a traditional bank.

Warranty Coverage and Who Actually Backs It

Extended warranties and service contracts sold at United Auto Group dealerships are underwritten by third-party warranty companies, not by United Auto Group. Common warranty providers include companies like Endurance, Assurant, and others. When you buy a warranty, you are purchasing a contract from that warranty company, even though the dealership sold it to you.

This distinction matters when you file a claim. If a repair is denied or delayed, you must contact the warranty company directly, not United Auto Group. The dealership cannot override the warranty company's decision, though it can help you file the claim and advocate on your behalf. Your warranty contract will list the warranty company's name, claim phone number, and the specific coverage limits and exclusions.

Manufacturer warranties — the coverage that comes with a new vehicle — are separate from any extended warranty you purchase. The manufacturer, not United Auto Group, backs the factory warranty. If you have a dispute over what the manufacturer's warranty covers, you contact the manufacturer's customer service line, not the dealership.

Your Rights When Buying From a United Auto Group Dealership

Your rights as a buyer depend on your state's consumer protection laws, the specific terms of your purchase agreement, and the lender's or warranty company's policies. United Auto Group dealerships must comply with federal lending laws (Truth in Lending Act, Equal Credit Opportunity Act) and state consumer protection statutes, which vary by location.

Most states give you a short window — typically three to five business days — to cancel a vehicle purchase or financing arrangement without penalty, though this right is not universal and may not explore if you have already driven the vehicle extensively. Your purchase agreement should state whether this right applies to you. If you believe the dealership violated a law or misrepresented the vehicle, you can file a complaint with your state's attorney general or consumer protection office.

If you have a dispute over financing terms, contact the lender named in your contract first. If the lender does not resolve it, you can file a complaint with the Consumer Financial Protection Bureau (CFPB), which oversees lending practices. For warranty disputes, contact the warranty company and, if unresolved, your state's insurance commissioner or attorney general.

Common Issues and How to Address Them

Buyers at United Auto Group dealerships most often encounter problems in three areas: financing terms that differ from what was promised, warranty claims that are denied, and mechanical issues with the vehicle itself. Each requires a different approach.

If your interest rate or monthly payment is higher than what you were quoted, review your financing contract when ready. Dealerships sometimes use "spot delivery" — letting you drive the car before financing is finalized — and then call you back if the lender rejects your process or offers worse terms. If this happens, you have the right to refuse the new terms and return the vehicle, though you may owe for any mileage or damage. Check your state's laws on spot delivery, as some states restrict or prohibit the practice.

If a warranty claim is denied, ask the warranty company in writing why. Common denials include pre-existing conditions, lack of maintenance records, or damage from misuse. If you believe the denial is wrong, you can appeal to the warranty company and, if still unresolved, file a complaint with your state's insurance commissioner.

If the vehicle has mechanical problems, start with the dealership's service department. If the vehicle is still under the manufacturer's warranty, the dealership must perform warranty repairs at no cost to you. If the vehicle is out of warranty and you purchased an extended warranty, file a claim with the warranty company. If you have no warranty coverage and believe the vehicle was sold with a hidden defect, consult a consumer protection attorney in your state.

Drivetime Financing: Different Terms and Considerations

Drivetime, a United Auto Group subsidiary, operates as a used-car retailer with in-house financing. Drivetime targets buyers with credit scores below 620, offering vehicles that might not be available through traditional dealerships. However, the trade-off is higher interest rates, shorter loan terms, and stricter payment policies.

Drivetime loans often include GPS tracking and starter interrupt devices — technology that allows the lender to disable the vehicle if you miss a payment. These devices are legal in most states but must be disclosed before you sign. Your Drivetime contract will specify whether these features are included and under what conditions they may be activated.

If you miss a payment at Drivetime, the company may disable your vehicle remotely or repossess it. Unlike traditional lenders, which typically allow a grace period, Drivetime's policies are often more aggressive. Before financing through Drivetime, understand the exact payment due date, the grace period (if any), and the consequences of a missed payment.

Steps to Take Before and After Purchasing

Before you buy, get a pre-purchase inspection from an independent mechanic — not the dealership's service department. This inspection costs between $100 and $200 but can reveal hidden problems that the dealership did not disclose. If the inspection finds issues, you can negotiate the price down or walk away.

Review all paperwork before signing. Your purchase agreement should list the vehicle's condition, any warranties included, the price, and the financing terms. Your financing contract should show the interest rate, monthly payment, loan term, and the lender's name. Do not sign anything you do not understand, and ask the dealership to explain any terms in writing.

After you buy, keep all documents in a safe place: the purchase agreement, financing contract, warranty documents, and service records. If a dispute arises, these documents are your evidence. If the dealership promises to fix something or add a feature, get it in writing on the purchase agreement or a separate addendum — verbal promises are difficult to enforce.

Frequently Asked Questions

Can United Auto Group repossess my vehicle if I miss a payment?

United Auto Group does not own your loan unless you financed through Drivetime. If you financed through a bank or other lender, that lender can repossess the vehicle. If you financed through Drivetime, Drivetime can repossess it. Check your financing contract to see who the lender is. If you are at risk of missing a payment, contact your lender when ready to discuss options.

What happens if I find out the vehicle has a hidden defect after I buy it?

If the vehicle is still under the manufacturer's warranty, the dealership must repair it at no cost. If it is out of warranty and you purchased an extended warranty, file a claim with the warranty company. If you have no warranty and believe the defect was present at sale, consult a consumer protection attorney about your state's lemon law or implied warranty protections.

Can I cancel my purchase or financing after I drive the vehicle home?

Most states allow a short cancellation window — typically three to five business days — but this varies by state and may not explore if you have driven the vehicle extensively. Check your purchase agreement for the cancellation policy and your state's consumer protection laws. If you are within the window, contact the dealership in writing when ready.

Who do I contact if I have a problem with my extended warranty?

Contact the warranty company named in your warranty contract, not United Auto Group. The warranty company handles all claims, denials, and appeals. If the warranty company does not resolve your issue, file a complaint with your state's insurance commissioner or attorney general.

Does United Auto Group stand behind the vehicles it sells?

United Auto Group is responsible for disclosing the vehicle's condition accurately and complying with consumer protection laws. It is not responsible for mechanical failures after the sale unless the vehicle is still under the manufacturer's warranty or you purchased an extended warranty. Your recourse depends on what was promised in writing and your state's consumer protection laws.