Saturday, January 12, 2013

Car Buying Services - Do they work?

                                                                            
Going one on one with a salesperson is a no win proposition for you. Salespeople don’t go one on one with you directly. They always have a sales manager and/or general manager available to help them close the sale. So, why shouldn’t you have some help to get you the best price?

                                                                             

There are numerous groups that assist car buyers with purchasing. They are categorized as buying services. Be careful! In some states buying services are illegal. The buying service uses the effect of representing large groups to get auto dealers to offer special discounted prices. Auto dealers are looking for an edge over their competition and will work with buying services to make extra monthly sales.

Most of your large discount stores offer auto buying services for it’s shoppers. So do banks, credit unions, department stores and shopping clubs just to name a few.

If you decide to join a buying service make sure that they can save you money on all the dealer’s models. Compare the price of the buying service with what you can negotiate on your own to test the buying services prices. All makes of cars, trucks, suvs, vans and mini vans should also be available to you at any time, not just during a special time of the year.

The theory with a buying service is they can go to auto dealers and negotiate a selling price with the dealer on behalf of it’s members. Each member is given some type of identification to present to the dealers. It identifies a designated person to see and the price the member should be quoted.

Some buying services will want a fee to help you. You should not have to pay a fee to join nor a fee to get a quote from the dealer. In some states if you pay a person or group a fee to assist you in buying a vehicle it’s considered brokering and that may be illegal. Check with your local motor vehicle administration for the laws in your area.

Being a part of a very large group can leverage your buying power with auto dealers to help save you money. The amount saved is determined by the number of real buyers in the group and the buying service’s negotiation expertise.

Online buying services  make it easy to get information and locate cars. The pretty much operate like all other buying services.

Questions to ask the salesperson: Do you work with any buying services? Which ones? What types of discounts will we get? What vehicles are not included? I’m not a member, but will you give me the same discount?

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