Is a Car-Buying Service Right For You?

Car-buying services can save you money on the overall purchase price of a car, often for a flat fee or a percentage of the savings under the MSRP. Car-buying services usually employ auto-savvy professionals to find a vehicle on the consumer's behalf, and can potentially save you a significant amount on the purchase price of your car. For many buyers, car-buying services are also attractive because they help you save time. 

Before you buy any new car, be sure to contact an independent insurance agent who can help you get the car insurance that best protects your new vehicle. An independent insurance agent in your town can help you shop and compare quotes and policies from multiple local carriers to find the best deal. But first, here's a closer look at the major types of car-buying services and how they can be beneficial for you. 

What Is a Car-Buying Service? 

A car-buying service helps you with the entire process of purchasing a car, from choosing the model you want to finding the exact vehicle that fits all of your needs and negotiating a price. If you're interested in using a car-buying service, you'll have several different types to choose from, including online car-buying sites, auto brokers, membership or club discount programs, and car concierges. 

It's important to do your homework upfront before hiring a car-buying service. You'll want to know what services to expect and how their fees work. 

4 Major Types of Car-Buying Services

Here are some of the most commonly used car-buying services. Researching each category before you're ready to buy your next vehicle can help you make an informed decision about which may be right for you.

1. Online Car-Buying Websites

Cost range: Free

Online car-buying websites are free to use and have a vast inventory of new and used cars. CarMax, Carvana, and Vroom are examples of car-buying websites where you can shop their inventory and find a car that meets your needs. You can even narrow down your search to only the vehicles you can afford by selecting your budget as the first step.

2. Car Brokers

Cost range: $0-$1,000

Car brokers are frequently former dealership salespeople who've ventured out on their own. These professionals know the ins and outs of the car industry and can help you find the car you need at the best price. 

Auto brokers put their experience to work for you. They often work as independent contractors, but there are also large firms that help consumers through the car-buying process. 

While they typically charge a fee, it won't be as much as you'll pay if you use a car concierge. Sometimes, the fee may even be covered by the dealership where you purchase the car. If this is the case, where your broker is being paid a commission by the dealer, it's smart to be wary of the relationship. Make sure you trust the car broker to be working in your best interest. 

3. Membership Discount Programs

Cost range: Varies by membership

You might already have access to a car-buying service if you’re a member of Costco, Sam’s Club, AAA, or even a bank or credit union. These memberships often allow you to purchase certain car models at a discount. A membership discount program may also offer vehicle advice and other services. 

Remember that while access to these services is included with your membership, their salespeople still have incentives to upsell you on things like warranties, insurance, and more. It's never necessary to purchase any of these if they're not right for you. 

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4. Car Concierges

Cost range: $200-$1,000 and/or a percentage of your savings

A car concierge is the gold standard of car-buying services. If you're too busy to do the work to buy a car yourself, a car concierge can do the searching and negotiation on your behalf. A car concierge can help you with finding a vehicle, handling the purchase, signing the paperwork, and even delivering the vehicle to you. 

The fees for a car concierge service often start at around $200 and increase from there. You may also have to pay a percentage of the amount you save by using the concierge during negotiations. Or, you might pay a percentage of your savings instead of a flat fee.

How to Choose the Right Car-Buying Service for You

To find the right type of car-buying service, you'll need to understand the different categories, what each service offers, and the fees they charge. Then, you'll need to balance these details with how much time and money you'll save by using the service. 

Consider how much help you need, how much you can afford, and what kind of car you want to buy (e.g., new or used). Finally, you can determine which type of car-buying service best fits that profile. 

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An Independent Insurance Agent Can Help You Insure Your New Car

Whether you purchase your new car the old-fashioned way at a dealership or use a car-buying service, don't forget to get in touch with an independent insurance agent first. By working with multiple car insurance companies and comparing quotes, a local agent can help you get the best auto insurance for your needs and budget. And down the road, your agent will still be there to help file car insurance claims for you and update your policy as necessary.