Printer-friendly versionDiscount Clubs & Automobile Club buying services: These are great places to shop, and buy automobile insurance from—but not the best way to buy a car. Here's why:
- These organizations make money by charging dealerships a subscription fee to be a "recommended" dealer. To be "recommended" the dealers must provide club members a set discount from the Manufacturers Suggested Retail price.
- These are referral services — you still must drive to the dealership and deal in person.
- The extremely competitive pricing usually excludes the most popular models.
- Pre-negotiated "discount" pricing only applies to the vehicle itself, there are no restrictions put on the dealers relating to how much they can make in the most profitable areas of their business: financing, extended warranties, dealer add-ons, trade-ins…
Internet Auto Buying Websites: The Internet is a great place to gather automobile shopping information with its vast data available regarding driving tests crash test results, residual values... but it is not the best place to buy a car.
- 99% of the websites are referral engines.
- After you enter your contact information the auto buying website resells your data to every dealer willing to pay for it, causing your phone to ring and your e-mailbox to fill up.
- The other 1% publish their pre-negotiated prices, but they are far from the least expensive or reliable as they must guess what the market is like, and always leave themselves loopholes such as "subject to availability."