How to compare car-buying services before you pay one

A car-buying service can be worth its fee, but services differ more than their websites suggest. Two can charge the same and give you very different things. These are the points to settle before you pay one.

The fee, and when it's due

• Flat or a percentage? A flat fee stays the same whatever car you choose. A percentage of the price, or of the "savings", grows with the car and depends on how the saving is measured.
• When do you pay? Some take the whole fee upfront, some when the search starts, some only when you buy. Know which, and what you have in hand at each point.
• What does it cover? One car or several, one model or a few. Check whether anything costs extra, such as a second search or delivery.

Whether a dealer pays them too

Ask plainly whether they receive any money from the dealer you buy from. A service paid by dealers can still be helpful, but its income then depends on where you buy. If the answer is vague, treat that as an answer.

Who does the negotiating, and how

• Is a person contacting dealers and pushing for a lower price, or are you being shown a member price agreed in advance?
• How many dealers will they contact, and how far from you will they look?
• Will they push back on dealer add-ons and markups, or simply pass them on? Our guide to dealer add-ons lists the ones worth questioning.

What you get in writing

A good service leaves you with something you can check yourself. Look for:

• an out-the-door total for each offer, with taxes, fees and any add-ons listed (our out-the-door price guide explains each part)
• the dealer's name and contact details
• the exact car: model, trim, color and options, ideally with a stock number or VIN
• how long each offer stands

If all you'll get is a figure read out on a phone call, keep looking.

If it doesn't work out

Read the refund terms before you pay, not after. Ask what happens if:

• the car you want can't be found
• no dealer will move on price
• you change your mind about the model partway through

Good terms answer these in a few clear sentences, and say when the service counts as finished.

What they promise

Dealers decide what they'll accept, so no honest service can promise you a set price or a set saving. Be wary of anyone who does. A service can promise effort, a clear process and a timeline. The price itself depends on the dealers and the car.

Where their job ends

Some services stop at the negotiated offers. Others stay through the paperwork or arrange delivery. Neither is better in itself, but you should know which one you're paying for. Whatever the service, make sure the car is bought in your own name, and that you read the dealer's paperwork yourself before you sign.

How we do it

We charge $399 flat. You tell us the exact new car you want, we contact several dealers and negotiate, and within 1–2 weeks you get a report with at least five negotiated offers and each dealer's details; you choose one and buy directly from that dealer. We do our best on every search, but dealers decide what they accept, so we can't promise a particular price.