5 tips to use a car-buying service Advertiser Disclosure Advertiser Disclosure We are an independent, advertising-supported comparison service. Our mission is to help you make better financial choices by providing you with interactive tools and financial calculators that provide objective and original content. This allows you to conduct your own research and evaluate information for free and help you make sound financial decisions. Bankrate has agreements with issuers such as, but not limited to, American Express, Bank of America, Capital One, Chase, Citi and Discover. How We Make Money The deals that are advertised on this site are from companies that compensate us. This compensation can affect the way and when products are listed on this site, including for instance, the order in which they appear within the listing categories, except where prohibited by law for our loans, mortgages,, and other products for home loans. However, this compensation will affect the content we publish or the reviews appear on this website. We do not include the vast array of companies or financial offers that may be available to you. SHARE skynesher/Getty images
4 min read Published June 15, 2022
Written by Jackie Lam Written by Contributing writer Jackie Lam is a contributing writer for Bankrate. Jackie writes about auto loans. Written by Rhys Subitch Edited by Auto loans editor Rhys has been editing and writing for Bankrate since the end of 2021. They are committed to helping readers gain confidence to control their finances through providing clear, well-researched facts that break down complex subjects into digestible pieces. The Bankrate guarantee
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We are compensated in exchange for the placement of sponsored products and services, or through you clicking certain links posted on our website. So, this compensation can affect the way, location and when products are listed in the event that they are not permitted by law. We also offer mortgage home equity, mortgage and other home loan products. Other factors, such as our own rules for our website and whether or not a product is offered in your area or at your personal credit score can also impact how and where products appear on this website. Although we try to offer the most diverse selection of products, Bankrate does not include the details of every credit or financial product or service. If you don’t like the thought of having to bargain with a dealership for the cost to purchase a brand-new car, a car-buying service may be a solid alternative. You can do it from the comfort at your home and some car buying services may offer ways to keep more money in your pocket. Can car-buying services work for you? Dealing with dealers can be daunting. If fear of a bad deal has kept you away from checking out dealer lots, a car-buying service can be a good option for you. There are two primary types of car-buying services that include Membership-based and concierge services. Concierge service can help you determine the cost of the vehicle and make the buying process more convenient for you, like delivering the car at your home or to the nearest center so you can test drive it prior to purchasing. Many organizations, like AAA warehouse clubs, warehouse clubs and , offer car-buying services to their members free of charge, says John Nielsen, managing director of auto engineering and repair for the AAA National office in Heathrow, Florida. Nielsen states that buyers who avail these car-buying services can save thousands of dollars on their purchase. “I have friends who purchased the car through Our program that saved $2,600,” he says. Although consumers have the ability to save quite a bit of dollars, not all car buying services are created equal, says Lauren Fix, founder of The Car Coach and Car Smarts and a consumer expert on autos. She advises consumers to be aware of what the company stands to gain from these deals and whether their goals are similar to yours. Tips on using a car-buying service If a car-buying service seems right for you, consider these tips before deciding. 1. Businesses offer negotiation and convenience Car-buying platforms are for shoppers who have a tight schedule and don’t have the time to search and , explains Fix. For instance, Carvana, a popular car-buying service, offers fixed prices and can bring the vehicle to your house so you can test-drive it for seven days. Prices can differ, and some companies cost a percentage of the cost of the vehicle. At Meriwest Credit Union in San Jose, California, members can avail the Autoland car buying service. The service allows members to not interact with anyone at a dealership, according to William Fultz, an auto broker at Meriwest Credit Union. Members are paired with the auto advisor who can negotiate the price of your car on your behalf and collaborate together to get a car loan through Meriwest Credit Union. 2. These services are typically available to only members. If you’re a members of AAA, AARP, Costco, Sam’s Club or a credit union, you could be eligible for their car buying services for free. Each program works differently and some offer the service of negotiating the price tag of a vehicle on your behalf, whereas others provide pre-negotiated fixed costs. Certain clubs and organizations may offer discounts, benefits or incentives offered by car manufacturers exclusively to their members. 3. Buyers should still do their research prior to contacting an auto-buying service, Fix suggests browsing auto research websites, such as Edmunds as well as Kelley Blue Book, to discover the average price for your desired car within your region. Another reason to do your research before you buy is that buyers will know what they are looking for before they reach out to the company, Nielsen says. “It’s difficult to assist with your search if you’re looking at minivansand sports vehicles or convertibles all at the same simultaneously,” he says. Nielsen suggests narrowing down your options to the best two or three choices, including make, model, color and other options before you contact an auto-buying service. “Think about what it is you really desire to purchase and the much you want to invest,” he says. When a company has that information, it can be more efficient in finding the car you want at a competitive price. 4. Learn how car buying services are paid for. While these services may be provided for free to members, the cost is folded into any fees for membership. As for the concierge, they might be charged a flat amount, or a percentage of the cost of the car. Car buying services typically negotiate discounts with dealers due to the volume of sales the dealership achieves through this process and pass along the savings to the consumer. However, buyers must be aware that they could be directing them to certain dealers with which they’ve a working connection, she says. “You have to determine if you are getting the best price,” Fix says. Fultz says referral fees may never be the primary advantage the companies get. Credit unions usually offer car-buying services as they improve the customer’s relationship with their financial institution. “It ensures that we keep our loans in-house on a much higher basis,” he says. “It is beneficial to our members, us and the dealers.” 5. Know the return policy Consumers must ensure they know the policy on customer satisfaction before they purchase the car or truck, Fix says. Otherwise, you might be stuck with a huge purchase and something you aren’t satisfied with. You can on the car-buying service platform’s website, or call customer service to inquire what their return policy is. Beyond the time you’re given after buying the car in order to take it back, make sure for an upper limit on the number of miles you can drive. If you go over the number of miles, you most likely will need to pay for every mile over the limit. In general, the vehicle cannot be returned damaged or altered — it has to be returned in the exact state as it was when it was delivered to you. The final word is that using a car-buying service could be a good option for you if you do not want to bargain with an agent on the lot, would rather avoid stepping foot on a car lot or if you’re short on time. Before you call, do your homework and review the particulars such as researching the cost involved, and a car-buying platform’s return policy. Find out more
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Written by the writer who contributes to the project. Jackie Lam is a contributing writer for Bankrate. Jackie write about automobile loans. Written by Rhys Subitch Edited by Auto loans editor Rhys has been editing and writing for Bankrate since the end of 2021. They are passionate about helping readers gain the confidence to control their finances by providing concise, well-researched and well-researched content that break down complex topics into manageable bites.
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