By Alexi Falson, 26 May, 2022
What is a Car Buying Service and Why You Need One
January 22, 2021
You enlist the help of a doctor when you’re ill, and a personal trainer to get fit, so why not enlist the help of a car buying service to help you buy a car?
A car purchase is often the second-biggest purchase a household will make, after the house. A car buying service can be a handy way to access fleet pricing, and also dodge dealership sales tactics. With our busy lives, juggling work, social, and family commitments, heading down to the dealership on a Saturday morning hardly sounds like a pleasurable task. From the slick suits to the fast talking, dealers can be a nightmare. So why not cut out that whole process?
What is a car buying service?
A car buying service is as the name implies - it’s a person or a company that buys cars for their clients. Also known as a ‘car broker’, the service acts as a middleman between car buyer, and dealership. The car buying service does the dirty work - finding out what inventory the dealer has, sourcing the appropriate car, and working out the best price. Many of us readily enlist the help of a mortgage broker, so why not use a car broker?
Benefits of a car buying service
The main benefit of a car buying service is that they are professional negotiators, and due to their volume of trade, can negotiate bulk-buying or fleet-level discounts from the dealership. This saves the car buyer the hassle of having to walk in to a dealership, wide-eyed and bushy-tailed, hoping to get a competitive price. A car buying service can help remove a lot of the hassle associated with the car buying process.
On top of negotiating with a dealer, a car buying service can also help the hopeful new car owner organise insurance, finance, salary packaging services, and more. During the car buying process, a good car buying service can also organise test drives and trade-ins, potentially eliminating the need for you to talk to a car dealership at all.
The end result is that you could end up with a new car price significantly cheaper than buying retail, or if you had tried to negotiate with a dealership yourself. In addition, a car buying service can also help you secure extras, such as paint upgrades, window tints, boot/floor mats, and paint protection. While you’ll still have to have some idea of the car you want, a car buying service does a lot of the leg work for you.
Do car buying services charge a fee?
A lot of the time, there is no upfront fee with a car buying service. Instead, the way they make money is through essentially collecting a ‘finders’ fee' from the dealership, for connecting you, the buyer, with the them, the seller. This could amount to anywhere from $100 to more than $1,000, depending on the make and model of the vehicle in question.
At OnlineAuto, there is no fee and no catches, just a team dedicated towards helping buyers find a good deal on their new car. In addition, OnlineAuto has no ties to any brands or manufacturers, so car selections are completely tailored to a buyer’s lifestyle needs.
What are the steps of using a car buying service?
At OnlineAuto, at least, the car buying service process is simple.
Step One: Make an enquiry - submit your information and a specialist will be in touch shortly.
Step Two: Consultation - the car buying specialist will find cars that match your needs and lifestyle.
Step Three: Compare Offers - A few offers will be presented within 48 hours, and from there you can organise a test drive.
Step Four: Receive your car - OnlineAuto can organise delivery of the new vehicle once purchased.
This virtually eliminates the need for you to even set foot in a dealership.
Besides actually buying the car and organising how you’ll finance it, the most important step is organising insurance. OnlineAuto can organise insurance for you, but if you go your own way, you’ll have to set your policy start date from the date you receive the car. It would be a classic case of Murphy’s Law to run into a lightpole the day you receive your car, so you don’t want to be caught without insurance.
For your next car purchase, consider using OnlineAuto, with fleet price discounts helping to eliminate the hassle of talking to a dealership.
Need help narrowing down your choices?
Get in touch with one of our Car Buying Specialists todayRequest a quote