Buying a loaner car from a dealership: is it a good idea? Weigh the pros and cons of buying a retired loaner vehicle, a like-new, certified pre-owned car. When your car is in the shop for repairs, a loaner car can keep you moving without stress. Dealerships often provide these courtesy vehicles, but securing one requires understanding their policies. This guide offers simple steps to help you get a loaner car from a dealership smoothly.

What Is a Loaner Car?

A loaner car, sometimes called a courtesy car or service loaner, is a vehicle provided by a dealership while your car is being repaired. These are typically well-maintained, low-mileage vehicles from the dealership’s inventory, often newer models. Some may later be sold as certified pre-owned (CPO) or pre-owned vehicles at a used car price.

Step 1: Check If You Qualify for a Loaner Car

Not every repair or customer qualifies for a loaner vehicle. Here’s what to check:

• Warranty Status: Confirm your vehicle is under the manufacturer’s warranty or an extended warranty plan. Loaners are often tied to warranty repairs or recalls, not routine maintenance like oil changes.
• Service Contract: Review any service agreements signed when purchasing your car. Some include loaner car provisions.
• Repair Type: Dealerships usually reserve loaners for major repairs or recalls. Ask if your repair qualifies.

Pro Tip: Find your warranty booklet or service contract and call the dealership’s service department to verify eligibility.

Step 2: Contact the Dealership Early

Loaner car availability is limited, so reach out proactively:

• Call Ahead: Schedule your repair appointment and ask about loaner car availability. Mention your vehicle’s issue and whether it’s covered by warranty.
• Ask About Policies: Inquire about requirements like age restrictions (often 21+), a valid driver’s license, or proof of insurance.
• Reserve Early: Request a loaner when booking your appointment, as some dealerships allow reservations.

Pro Tip: Be polite and clear about your needs to help service advisors prioritize your request.

Step 3: Understand the Dealership’s Loaner Car Policy

Each dealer has unique rules for service loaners. Clarify these details:

• Availability: Luxury brands like BMW or Lexus may have more loaners than mainstream brands.
• Cost: Loaners are often free for warranty repairs, but some dealers charge a daily fee or require a deposit for non-warranty services.
• Duration: Confirm how long you can keep the loaner vehicle, typically for the repair duration, though limits may apply.
• Vehicle Type: Expect a model similar to your car or a base model from the manufacturer. Specific models or upgrades may not be available.

Pro Tip: Request the policy in writing to avoid confusion.

Step 4: Gather Required Documents

To secure a loaner car, prepare these documents:

• Valid Driver’s License: Ensure it meets the dealership’s age requirements.
• Proof of Insurance: Your auto insurance must cover the loaner vehicle. Bring your insurance card or policy details.
• Credit Card: Some dealers require a card for a security deposit or potential fees (e.g., fuel or damage).
• Service Agreement: Bring paperwork if your repair is covered by a specific contract.

Pro Tip: Having documents ready speeds up the process and shows you’re prepared.

Step 5: Explore Alternatives If No Loaner Is Available

If a loaner car isn’t available, consider these options:

• Rental Car Reimbursement: Some warranties or service contracts cover rental car costs. Ask your dealer or warranty provider.
• Courtesy Shuttle: Many dealerships offer free shuttles to get you home or to work.
• Third-Party Rentals: Check if the dealer partners with rental agencies for discounted rates.
• Wait at the Dealership: For minor repairs, ask about wait times. Some dealers offer lounges with Wi-Fi.

Pro Tip: Discuss alternatives when booking to plan ahead.

Step 6: Follow Loaner Car Rules

If you get a loaner vehicle, follow the dealership’s guidelines:

• Treat It Well: Avoid smoking, eating, or transporting pets unless allowed to avoid cleaning fees.
• Fuel Up: Return the car with the same fuel level as received to avoid charges.
• Driving Limits: Some dealers restrict mileage or limit use to local driving. Clarify upfront.
• Return Promptly: Return the loaner as soon as your vehicle is ready to avoid fees or delays for other customers.

Pro Tip: Inspect the loaner car for existing damage before driving and report issues to the dealership immediately.

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Bonus: Should You Buy a Retired Loaner Car?

Former loaner cars are often sold as certified pre-owned or pre-owned vehicles. Here are the pros and cons of buying a retired loaner:

Pros

• Low Mileage: Loaner cars typically have minimal wear from short trips or test drives.
• Well-Maintained: Dealerships maintain these cars to high standards.
• Manufacturer’s Latest Features: You get a newer model with modern tech at a used car price.
• Certified Pre-Owned Options: Many former loaners qualify as CPO models with extended warranties.

Cons

• Driven by Multiple People: Loaner cars may have varied wear from multiple drivers.
• Classified as a Fleet Vehicle: This could impact resale value or result in a branded title.
• Limited Inventory: Dealerships often sell loaners before they reach the online inventory.

Pro Tip: If interested in buying a loaner car, ask to browse the dealership’s inventory or check pre-owned vehicle choices. Ensure the car’s previous use as a service loaner is disclosed.

Benefits of Buying a Loaner Car

Buying a retired loaner car can be a smart choice for some buyers. Here are the key benefits:

• Low Mileage: Loaner cars typically have minimal wear from short trips or test drives, often with fewer miles than privately owned used cars.
• Well-Maintained: Dealerships maintain these vehicles to high standards, ensuring they’re in excellent condition.
• Manufacturer’s Latest Features: Loaners are often newer models with modern technology, offering a like-new car at a used vehicle price.
• Certified Pre-Owned Options: Many retired loaners qualify as CPO models, which come with extended warranties and rigorous inspections.

Benefits of Buying a Retired Loaner Vehicle

Purchasing a retired dealer loaner offers additional advantages:

• Cost Savings: Retired loaners are often priced lower than new vehicles, providing a newer model at a used car price.
• Dealership Oversight: Unlike private sales, loaners are serviced by the dealership, ensuring consistent maintenance records.
• Transparency: Dealerships disclose the car’s previous use as a service loaner, so you know its history upfront.
• Warranty Coverage: Many retired loaners come with remaining factory warranties or CPO benefits, adding peace of mind.

Retired Dealer Loaners vs. Rental Cars

When considering a used vehicle, retired dealer loaners and former rental cars are two common options. Here’s how they compare:

• Maintenance: Dealer loaners are typically better maintained, with regular servicing by the dealership. Rental cars may experience inconsistent care due to high turnover and varied drivers.
• Mileage: Loaners often have lower mileage from short-term use, while rental cars may accumulate higher miles from frequent, longer trips.
• Condition: Loaners are generally kept in like-new condition to reflect the dealership’s brand. Rental cars may show more wear from heavy use by multiple people.
• Price and Value: Retired loaners may cost slightly more than former rental cars but often include CPO benefits or remaining warranties, offering better long-term value.
• Availability: Loaners are harder to find, as dealerships sell them quickly. Rental cars are more widely available through rental agencies or used car lots.

Pro Tip: If you’re considering a retired loaner, ask to browse the dealership’s inventory or check online for pre-owned vehicle choices. Ensure the car’s previous use as a service loaner is disclosed.

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Tips for Success

• Build a Relationship: Regular service customers may get priority for loaners.
• Be Flexible: Accept what’s available if your preferred model isn’t offered.
• Plan Ahead: Schedule repairs during quieter times (e.g., midweek) for better loaner availability.
• Communicate Needs: Need a larger vehicle for family? Inform the dealer early.

Are Dealerships Required to Provide Loaner Cars?

No federal or state law requires dealerships to provide loaner cars. It depends on the dealer’s policy, warranty terms, or service contract. Luxury brands often offer loaners to enhance the customer experience, while mainstream dealers may charge or not offer them. Check your warranty or service agreement for details.

Loaner Car FAQs: Quick and Friendly Answers

Final Thoughts

A loaner car can make car repairs less disruptive, but it requires preparation and clear communication with your dealership. By understanding dealer policies, verifying eligibility, and exploring alternatives, you can ensure a smooth experience. Contact your dealership’s service department or review your warranty documentation for specific details.

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