Buying a loaner car from a dealership can be a smart way to get a nearly new vehicle at a discounted price. Loaner cars, also known as courtesy vehicles, are used by dealerships to provide transportation to customers while their own cars are being serviced. These vehicles are typically well-maintained, have low mileage, and come with the remainder of the manufacturer’s warranty. For many buyers, this option offers the perfect balance between new and used car advantages. But before making such a purchase, it’s essential to understand the benefits, potential drawbacks, and best practices for evaluating a loaner car deal.
What Is a Loaner Car?
Definition and Common Uses
A loaner car is a vehicle owned by a dealership and temporarily used by customers who need a ride while their primary vehicle is being repaired or serviced. These cars are usually kept in good condition, regularly inspected, and only driven for short periods of time. Because they are part of the dealership’s inventory, they are usually newer models, sometimes from the current or most recent year.
Difference from Rental Cars
While similar in concept, loaner cars are not the same as rental cars. Rental vehicles are typically owned by car rental companies and may see harder use over longer distances. Loaner vehicles remain under the dealership’s direct control and are generally driven less aggressively and over shorter periods.
Why Buy a Loaner Car from a Dealership?
Key Benefits
Purchasing a loaner vehicle can come with several advantages that appeal to budget-conscious and value-focused buyers. These include:
- Lower Price: Since loaner cars have been driven by other people, dealerships typically price them lower than brand-new models, even if they are still relatively new.
- Manufacturer Warranty: Many loaner cars are still covered under the original factory warranty, and some dealerships may even extend this warranty for extra peace of mind.
- Low Mileage: Loaner cars often have mileage ranging from 2,000 to 10,000 miles, making them far newer than many used cars.
- High Specification: Dealerships often use well-equipped models as loaner cars to showcase premium features to potential customers.
Things to Consider Before Buying a Loaner Car
Vehicle History and Use
Although loaner vehicles usually receive regular maintenance, it’s essential to ask for a complete history report. This report should include service records, accident history (if any), and how long the car was used as a loaner. Some vehicles may have been used more frequently or by drivers with different levels of care, so it’s wise to evaluate how this might affect the car’s condition.
Vehicle Inspection and Test Drive
Before purchasing, make sure to inspect the car or have it checked by an independent mechanic. Even though it’s a dealership-maintained car, a thorough inspection ensures there are no unnoticed issues. Also, take the car for a test drive to evaluate performance, comfort, and any signs of wear and tear.
Warranty Details
Confirm the details of the warranty coverage. In many cases, the factory warranty is calculated from the date the dealership first registered the car, not the date you buy it. Ask the dealer if they provide any additional warranty to make up for the time the car was used as a loaner.
How to Get the Best Deal
Negotiation Tips
Like any car purchase, the price of a loaner car is negotiable. Do your research and compare prices for similar models, both new and used. Ask the dealer for a breakdown of costs and don’t hesitate to request discounts or incentives. You can often get a better deal on a loaner car at the end of a sales quarter when dealerships are trying to meet sales goals.
Check for Financing Offers
Some manufacturers and dealerships offer special financing rates on certified pre-owned or loaner vehicles. Ask whether the dealership can provide the same interest rate or promotional offer that applies to new vehicles, as these sometimes extend to late-model loaners.
Trade-In Opportunities
If you’re trading in a car, use that as leverage during the negotiation. Combining your trade-in with the purchase of a discounted loaner vehicle may result in significant overall savings.
Red Flags to Avoid
Excessive Wear or Mileage
While loaner vehicles should have relatively low mileage, some may have been used for extended periods or driven harder than usual. Be cautious of any loaner with mileage that seems high for its age or that shows signs of heavy wear, such as worn seats, scratched paint, or uneven tire tread.
Limited Availability or Selection
Not all dealerships offer loaner vehicles for sale, and the selection is often limited to a small number of models and trims. If you’re set on a specific feature or color, you might need to compromise or wait for another vehicle to become available.
Certified Pre-Owned vs. Loaner Vehicles
Comparing Value and Assurance
Loaner vehicles may or may not be sold as certified pre-owned (CPO). If the car is certified, it will typically come with a thorough inspection and extended warranty. However, some dealerships sell loaners without certification, which might affect resale value and long-term confidence. Ask whether certification is included in the price and what the process entails.
Long-Term Ownership Value
Since a loaner vehicle typically has only one previous owner (the dealership) and is newer than many used cars, it may retain its value better. However, the lack of full customization and the history of multiple drivers may reduce some buyers’ willingness to pay a premium in the future. Think about how long you plan to keep the car and whether resale value matters to you.
Buying a loaner car from a dealership can offer significant savings, especially for those looking for a newer vehicle without paying full retail price. These cars are typically well-maintained, lightly used, and often come with existing manufacturer warranties. However, it’s important to do your research, understand the car’s history, and negotiate wisely. Consider vehicle condition, warranty coverage, and available financing to ensure you get the best possible value. When done right, purchasing a loaner car can be a practical and financially sound choice in today’s competitive automotive market.