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An Alternative Buying
Strategy

1.Introduction

What Am Car Buying services?
Car-buying services offer a buying alternative. For a fee these services can provide a range of services-depending on the company-that will make it possible for you to buy a car at a very good price. Generally, car services claim that they can get you a price well below what the average buyer will get and without the hassle. In fact, most car-buying services will tell you that with but a few exceptions they can help you buy a car for a price ranging from a few hundred dollars over invoice to hundreds of dollars under invoice. We'll explain how they are able to do that below.



Like car dealerships, some deliver as promised. Some, unfortunately, may not be all that they represent themselves to be. In fact, it has been shown that some are actually little more than fronts for car dealerships. As a result, some states outlaw their services.

Brokers, Car- Buying Services, and Information
It's important to understand that these middleman services vary in terms of what they provide and how they operate. Ofttimes "car-buying service" is used as a generic term and does not necessarily represent what a particular firm offers.
Car Brokers
By definition a car broker is different from a car-buying service. Generally, a broker is someone who buys a car from a seller and then resells it to a buyer. There's nothing wrong with this. In fact, stockbrokers do it with stocks every day. In the stock market a broker gets a fee or commission from the seller and one from the new buyer. This is called "stripping both sides of the deal." In the car business, brokers do essentially the same thing, although there are many variations as to how they work
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