Buying a car is a major financial decision, and for many people, finding a quality vehicle at a reasonable price is the top priority. One often-overlooked option is purchasing a loaner car from a dealership. These vehicles, also known as courtesy cars or service loaners, are typically used by customers while their own cars are being serviced. Because they are lightly used and well-maintained, loaner cars offer an appealing balance between cost and value. Learning how to buy a loaner car from a dealership can help you save money without compromising on reliability or performance.
Understanding What a Loaner Car Is
The Basics of Loaner Vehicles
Loaner cars are dealership-owned vehicles temporarily provided to customers when their primary vehicle is being serviced. These cars are often relatively new and have low mileage. After a certain period, typically once they reach a few thousand miles, the dealership will sell them at a discounted price compared to a brand-new model.
Differences from Other Used Cars
Unlike standard used vehicles, loaner cars:
- Have only been driven by dealership customers
- Are usually under factory warranty
- Receive regular maintenance from the dealership
- Often have only one ‘owner’ the dealership
Because of these characteristics, loaner vehicles are a popular choice for buyers looking for nearly-new cars without paying full price.
Benefits of Buying a Loaner Car
Lower Price Point
One of the biggest advantages of buying a loaner car is the price. Loaner cars are generally sold at a lower cost than brand-new models even though they might only be a few months old. This discount can amount to thousands of dollars in savings.
Factory Warranty Protection
Since loaner cars are still fairly new, most come with the remainder of the manufacturer’s warranty. Some dealerships may even extend the warranty to account for the time the car spent in the loaner program.
Better Condition
Loaner cars are typically well-kept. Dealerships ensure these vehicles are clean, functioning properly, and represent the brand well. They receive regular inspections and maintenance to keep them in top shape for customer use.
Lower Depreciation
New cars depreciate quickly often losing a large percentage of their value in the first year. Since loaner vehicles are technically used, you avoid the steepest portion of depreciation, which is ideal for maintaining value over time.
Steps to Buy a Loaner Car from a Dealership
1. Research Dealerships That Offer Loaner Vehicles for Sale
Start by identifying dealerships in your area that sell loaner cars. Not all dealerships list these vehicles online, so it’s worth calling or visiting the dealership to inquire. Look for franchised dealers those that sell new vehicles for major manufacturers as they are more likely to have a loaner program.
2. Ask the Right Questions
When you find a potential loaner car, ask the dealership representative the following questions:
- How was the vehicle used?
- How many miles does it have?
- Is the car still under factory warranty?
- Was the vehicle maintained at the dealership?
- Has the car been involved in any accidents?
Getting answers to these questions will help you make an informed decision and ensure transparency in the purchase process.
3. Check the Vehicle History Report
Request a vehicle history report from the dealership or obtain one yourself using the car’s VIN (Vehicle Identification Number). This report provides a detailed overview of the car’s past use, service records, and any reported incidents. Since loaner cars are dealer-owned, their history is typically clean, but it’s still wise to verify.
4. Inspect and Test Drive the Vehicle
Even if the car is in great condition on paper, always inspect it in person. Look for signs of wear and tear on the interior and exterior. Then, take the car for a test drive to evaluate its comfort, performance, and any unusual noises or vibrations. Pay attention to the brakes, steering, and electronics.
5. Negotiate the Price
Loaner cars already offer value, but there may still be room for negotiation. Use pricing guides like Kelley Blue Book or Edmunds to understand the fair market value of the car based on its make, model, year, and mileage. Don’t hesitate to discuss discounts, financing options, or add-ons like extended warranties or service packages.
6. Confirm Warranty Coverage
Before signing the contract, double-check the vehicle’s warranty status. Ask for documentation that shows how much of the original warranty remains and whether the dealership is offering any extended warranty coverage. This protection is a key benefit of buying a loaner car, so make sure it’s included.
7. Finalize the Purchase
Once you agree on the price and terms, the dealership will prepare the necessary paperwork. Read the contract thoroughly before signing, and ensure everything discussed is included. Then, register the vehicle in your name, obtain insurance, and you’re ready to hit the road.
Potential Drawbacks and How to Avoid Them
Higher Mileage Than Brand-New Cars
Loaner cars may have more mileage than you’d expect from a nearly new vehicle. While this typically doesn’t affect performance or reliability, it’s important to factor mileage into the price and warranty terms.
Limited Selection
You may not find the exact color or trim level you’re looking for. Loaner vehicle inventory depends on what the dealership has used, so your options could be limited.
Be Aware of Wear and Tear
While dealerships maintain loaner cars well, they may have cosmetic imperfections or signs of use. Carefully inspect the vehicle to ensure any flaws are minimal and acceptable to you.
Tips for a Successful Purchase
- Shop around at multiple dealerships to compare loaner vehicle prices and options.
- Don’t rush take your time to research and evaluate before buying.
- Bring someone knowledgeable about cars with you if you’re unsure.
- Ask if the dealership includes extras like free oil changes or maintenance.
Buying a loaner car from a dealership is a smart strategy for getting a nearly-new vehicle at a more affordable price. These cars are often well-maintained, still under warranty, and provide great value for the money. By doing thorough research, asking the right questions, and inspecting the vehicle carefully, you can make a confident purchase that fits both your budget and driving needs. With the right approach, a loaner car could be the perfect way to drive away in a quality vehicle without paying full price.