Car-buying services shop for you |
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"Ask your friends if they have any recommendations," Fix says. "Once you have some names,
contact the Better Business Bureau to see if they have any information on the company."
If you don't know anybody who has used a car-buying service, ask to speak with past customers, Fix says.
"Ask the car-buying service to give you the names of past customers, and then call them,"
Fix says. "Ask what they liked and didn't like about the service. At the very least, if you decide to use
the company, you'll know what you're getting."
Tarry Shebesta, president of
the Cincinnati-based Automobile Consumer Services,
agrees that choosing the right car-buying service makes all the difference.
Some car-buying services give you a price that's close to invoice, but neglect to tell you of added
dealer fees and other costs that suddenly appear when you go to pick up the car and sign the paperwork, he says.
"That good deal you thought you were getting is not such a good deal anymore," Shebesta says.
A better option, says Shebesta, is to find a service that will prepare the paperwork for you
ahead of time.
"Make sure you get a copy of the buyer's order before you go into the dealer," he says.
Car-buying services are often able to negotiate prices because they have relationships with
dealers -- they're bringing them customers on a regular basis. This could lead to a conflict of interest.
Before selecting a car-buying service, find out if they're receiving compensation from any party
other than the car buyer.
"Ask the service if they are a buyer's agent. That's different from being a broker," Shebesta says.
Buying services may also offer additional financial services on their own, like auto loan financing,
lease financing, extended warranties and gap insurance. If you're considering them, be sure to shop around first.
Also, make sure you understand the company's refund policy, especially if the company is unable to
locate the vehicle you want. Many companies will require a partial payment upfront, and that portion often is nonrefundable.
"Different states have different laws about refunds," Fix says. "My advice is to read everything in
your contract before signing."
Services offer a lot of help
Car shoppers who loathe the very thought of setting foot into a
dealership will be relieved to find that car-buying services are
willing to do most of the grunt work prior to the purchase.
“Usually, customers are in and out of the dealership in an hour.”
Car-buying services generally do all the negotiating for you. Once they've hammered out a deal, they
send the contract and give you time to review it.
"When customers walk in the dealership, they should have the buyer's order in their hand," says Rick
Hall, president of No Haggles. "Everything should already be discussed and settled
with us, the customer and the dealership. There should be absolutely no haggling. Usually, customers are in and out
of the dealership in an hour."
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