Car-buying services shop for you |
|
|
|
Car-buying services can also help with last-minute snags.
"We tell the consumer that if anything changes or the dealer tries to get them to sign something
else other than what they've agreed to, to call their automotive specialist," Sanchez says. "That automotive
specialist will call the dealership contact person to get the delivery process back on track. We've had to make
a few calls to get things back on track, but we haven't had any major problems."
Some companies follow up to make sure the buyer received the agreed-upon price.
Steve Oxsalida, an account representative who manages the car-buying program at Tampa, Fla.-based
AAA Auto Club South, says that when a member purchases a car through the AAA program, the dealer is under contract
to send AAA copies of the buyer's order, manufacturer's invoice, trade-in information and other purchase details.
"We audit the transaction and verify that the member did receive the AAA (negotiated)
price," Oxsalida says.
If the customer was overcharged, AAA collects the overage and returns it to the customer,
Oxsalida says. He says the entire auditing process takes about six weeks.
Negotiation should go beyond price
Buying a car at invoice doesn't necessarily mean you've gotten a good deal, Sanchez says.
"The biggest misperception in the marketplace is that if a customer buys a car at invoice,
they've gotten a good deal," Sanchez says.
Hall says people who shop at no-haggle dealerships often make this mistake. They look for a
good price, but forget about trade-in and financing.
"People can be disarmed, especially at no-haggle dealerships," he says. "They pick out the
vehicle and accept the price, but then they are walked into the finance office."
If shoppers haven't researched their options, they may end accepting a loan with lousy terms.
Sanchez says a car-buying service should help the buyer negotiate all three areas -- price,
trade-in and financing. Otherwise, the consumer could lose thousands of dollars.
To help negotiate the price of car trade-ins, some companies ask buyers to send in pictures
of their old car along with a written description.
Deals on popular cars are scarce
Car-buying services have their own pricing structures when negotiating deals.
"Our pricing structure is to negotiate 1 percent over invoice for cars, but 3 percent over
invoice for high-line vehicles like Lexus, Mercedes and BMW," says Oxsalida.
However, some cars may not be included in these guidelines.
"There are also vehicles that are excluded from our program based on supply and demand,"
Oxsalida says. "For example, a new model coming out that already has a waiting list would be excluded."
Dealers have little incentive to negotiate on those cars, he says.
Shebesta says his company also runs into the occasional roadblock when trying to negotiate
a good price on popular models.
|
