Dealerships will often offer customers the opportunity to take a loaner car home while their vehicle is being serviced or repaired. but if you’ve never taken advantage of this perk before, you might not know exactly what it entails.
Generally speaking, there are two types of loaner cars: company cars and customer cars. Company cars are usually the property of the dealership, so they’re free to use as needed, and they’re typically only offered to staff members who work onsite.
In This Article
The Facts – How Much Do Loaners Cost?
Each dealership has its policy on loaners, so you’ll need to reach out to your salesperson or service manager if you’d like one. However, if you’re trading in an old car and buying a new one, they’ll likely offer you one.
At some dealerships, they cost as little as $0 per month; other companies offer unlimited miles for $50 per month. It all depends on what agreement you have with your dealership and how good of a deal they were able to strike with their preferred lender.
If you go through another company—even credit unions—the costs will likely be higher than through your dealer or manufacturer’s financing arm. But keep in mind that even at lower monthly payments, those dollars add up pretty quickly over time.
The Pain Points – What Doesn’t Loaners Solve?
For some customers, dealing with dealerships isn’t exactly fun. As part of their service, most new-car dealers offer loaner cars for warranty repairs or scheduled maintenance. If you’re not familiar with how loaners work, it can be tempting to just jump at that perk when you need help getting around.
But before you do, remember that loaners aren’t the ultimate solution for everyone. yet! Keep in mind these common pain points that come along with having your loaner car.
The Experience – Do People Still Prefer Loaner Cars?
The experience of a loaner car isn’t quite as straightforward as you may think. For example, many customers prefer not to get loaners because they don’t want to go without their cars for an extended period.
Additionally, there is always some anxiety about getting into an accident in somebody else’s car. But most people do take advantage of loaners if they are offered. It all depends on your personal preferences and needs, but if you have an option, it might be worth trying out both options to see which works best for you!
The Future – Will Cars Ever Run Out of the Dealer?
The future of cars is exciting. For decades, people have predicted that cars will no longer need dealers. But despite tremendous progress in autonomous tech and ride-sharing, we’re still driving to dealerships to buy and service our cars.
Perhaps, someday soon we won’t need dealers—but for now, they’re an important part of how we get around town. A loaner car can help ensure your auto experience is as seamless as possible!
Loaner car from dealership insurance
If you’re leasing or financing a car, loaner cars are often included as part of your deal. But for anyone that has purchased or is looking to purchase their vehicle, there are some things you should know about being provided with a loaner car.
First and foremost, it’s important to understand that you will still be responsible for insuring yourself when using a loaner. Even if your loaner car is covered by your insurance company (or one they have partnered with), it doesn’t change who holds financial responsibility in an accident – unless you have either opted in to an additional agreement or been pre-approved.
Finances – Does it make financial sense to lease or buy a vehicle that comes with a free loaner car?
If you purchase or lease your vehicle from a dealership, you’ll typically be offered free use of their loaner cars. However, it’s not often that you’re told why to consider taking advantage of those vehicles for your personal use.
While it may sound like a bonus, there are many reasons why it makes sense to spend time behind the wheel of a loaner car. Some people find that these vehicles save them money and make better financial sense than paying for the extra insurance or renting another car. Let’s take a look at how leasing or buying through a dealership can benefit your finances when they offer free use of their loaners.
Buying vs. Leasing – Which One Saves Me Money?
Leasing and buying cars can seem very similar, but they differ quite a bit in how you pay for them. Generally speaking, both leasing and buying are good options if you want to get behind a new car every few years, but depending on your particular circumstances, one may be better than another.
In some cases, it could save you hundreds or even thousands of dollars over five years or so to buy instead of lease, or vice versa. Here’s why! And here’s what you need to know about each option: Buying A New Car With Financing (A Typical Loan) A loan is an agreement between two parties – often between a bank and an individual – where money is borrowed by making regular payments until it’s paid off.
This is also known as financing something, as we were financing our purchase with monthly payments that eventually paid off what we owe. There are other ways to finance purchases like paying cash or using credit cards (debt), but loans are probably the most common way consumers purchase things like homes, cars, boats, and other big-ticket items.
Will My Insurance Cover Collision Damage From a Free Lease/Purchase Loaner Car?
As an independent insurance agent, I’m asked all of the time, Will my insurance cover collision damage if I use a free loaner car? Let me answer that question right off with an example. You drive your car to your dealership for routine maintenance; your loaner is a truck. While leaving work, you are rear-ended by another vehicle.
The fact that you were in a vehicle other than your own is not known until after you have signed all of those documents and left. Now, what happens? The answer is dependent on one thing… Did you sign anything saying that damages to any vehicle are at YOUR expense?