Unlock Savings: The ‘Courtesy Car’ Loophole for New Car Buyers
TikTok user Toni Dowell (@justtdowell), a car finance vlogger, is sharing what she calls the best way to buy a new car, saving money like you’re purchasing used. Dowell suggests a strategy that could save you thousands of dollars when buying your next vehicle.
Dowell’s advice, shared on her TikTok account on Feb. 15, involves a ‘courtesy car’ or ‘loaner car.’ These vehicles are used by dealerships while a customer’s car is being serviced. Here’s how it works:
- Not a lease: You own the car.
- Lower interest rates: Comparable to new car rates.
- Potential for significant savings: Dowell claims you can save up to $15,000.
“Most of these car dealerships, they sell courtesy or loaner cars; only thing you need to do? You have to ask,” says Dowell. She stresses the importance of asking sales representatives about these options. “’You have not because you ask not’ James 4:2,” she concludes.
What is a Courtesy Car?
A courtesy car is a vehicle a dealership provides to customers when their cars are in for repairs. These are often recent, high-end models, intended to entice potential customers. The vehicles typically have low mileage when they go up for sale.
Bethany Hickey, Senior Auto Financing editor for Cars Direct, notes that courtesy vehicles “are typically offered by auto manufacturers themselves” and “typically undergo inspections and are refurbished before the sale.”
Is it a Good Deal?
Buying a courtesy car can be a sound investment. They offer a way to obtain a new vehicle at a potentially reduced price.
According to Car Pro, these cars are often listed with a “demo” tag, indicating a loaner vehicle. However, consider the mileage, as dealerships often keep loaner cars in service for at least 90 days.
While mileage will vary, try to find a loaner with the fewest miles possible to maximize potential savings and longevity. There is, of course, a potential risk that the car may not last as long as a brand new one.
Viewer Feedback
Many viewers have shared positive experiences with this method.
- “I worked at a dealership a couple years ago and yes, 100% true! Just ask because nobody is gonna volunteer that information lol,” wrote Karma (@karmasantini) in the video’s comments.
- Another viewer said, “Yup! Bought a brand new Range Rover fully loaded because it was a loaner. Only had 3k miles on it and it was the current year model.”
- Another added, “I got $10k off a brand new luxury car, it was a loaner.”
The Daily Dot has reached out to Dowell for further comment.
