Automotive

Buying a Service Loaner Car

  • Last Updated:
  • Mar 24th, 2017 8:55 pm
[OP]
Newbie
Oct 27, 2009
48 posts
9 upvotes

Buying a Service Loaner Car

Hi,

I was at a VW dealership Saturday to look at their "corporate" car returns. I ended up putting a deposit on a service loaner Passat. They told me its always been with their dealership. It only has 11,000km on it and looks like new. Today, I realized they gave me the wrong carproof. Upon inquiry this morning, the sales guy told me its not possible to get one since it was a loaner car. That turns out to be incorrect as I pulled one myself and turns out it has 2 registered owners on file.

I had been in the dealership for what seemed like an eternity Saturday and I'm starting to wonder about the deal I made. Its as though they may be hiding something. Does anyone have any experience with this? I've never bought from a dealer before.

And just one other thing, they said they need until Thursday before the car is ready. Seems like a long time to me for a car that's almost new.
17 replies
Deal Expert
User avatar
Jul 30, 2007
17820 posts
3418 upvotes
Toronto
U already bought it with questionable background history, just enjoy it since not much u can do now
Deal Addict
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Sep 19, 2002
2235 posts
812 upvotes
Vancouver
The car may have been registered once to the original dealer after they couldn't sell it. The dealer bought it to capture incentives from VW.

The second registration may have been dealer to dealer. The second dealer couldn't sell it either and placed it on loaner duty.

Any dealer can make a car look new again. They've got a handful of minimum wage staff whose job is to use elbow grease and make their inventory shine.
Newbie
Sep 9, 2012
69 posts
17 upvotes
Burlington
They were probably too cheap to pay for the carproof. treat the service loaner like a demonstrator. Not knowing how busy that dealership is. Usually takes 2-3 days to get licensing, safety, emissions, and detailing done.
Nicky Nguyen

"Your friend in the car business"
Deal Addict
Apr 22, 2013
1181 posts
413 upvotes
Markham
A service loaner car is in essence a rental car without the title. Many dealerships contract out their service loan cars to rental car companies. The only thing a dealer's own service loan cars does is guarantee the same make. Hopefully you're paying the price of what you'd pay for an ex-rental car.
Deal Addict
Aug 29, 2011
2288 posts
470 upvotes
Mississauga
Many years ago I was riding in a fairly new dealership customer shuttle and the driver told me he wouldn't be having it much longer because it had been sold.
[OP]
Newbie
Oct 27, 2009
48 posts
9 upvotes
booblehead wrote:
Mar 20th, 2017 5:27 pm
U already bought it with questionable background history, just enjoy it since not much u can do now
Maybe you're right but I think I could get the deposit back if I wanted to. Problem is, then I have to search again. Hard to find a used vehicle for sale without a "questionable history".

The car has 2.5 years of new car warranty left. It doesn't show "rental" anywhere on the carproof so if I had to sell it I wouldn't be at a loss there.
[OP]
Newbie
Oct 27, 2009
48 posts
9 upvotes
JeganV wrote:
Mar 20th, 2017 7:42 pm
A service loaner car is in essence a rental car without the title. Many dealerships contract out their service loan cars to rental car companies. The only thing a dealer's own service loan cars does is guarantee the same make. Hopefully you're paying the price of what you'd pay for an ex-rental car.

That is essentially what I paid for it. Just trying to decide if its worth the savings or not.
Deal Guru
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Dec 2, 2008
11060 posts
1268 upvotes
loaners = beat to death............
Jr. Member
Nov 11, 2013
137 posts
87 upvotes
Calgary
Whenever I get a service loaner I drive it pretty hard, lots of quick acceleration, braking and fast driving through puddles, pot holes etc.

I would never buy a service loaner or rental car.
Deal Addict
Jun 18, 2008
4142 posts
2208 upvotes
Montreal
redblack wrote:
Mar 20th, 2017 10:59 pm
Whenever I get a service loaner I drive it pretty hard, lots of quick acceleration, braking and fast driving through puddles, pot holes etc.

I would never buy a service loaner or rental car.
So because it's not your property you feel the need to purposely destroy it, or is it that you're just an all around prick and can't help yourself?
Sr. Member
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Jul 5, 2011
938 posts
502 upvotes
Toronto
The value depends on the deal really..

I've worked a dealer with service loaners, and we depreciated them at 2x normal rate as compared to demo units (2% / month vs 1%).

I don't believe there is anything inherently bad about a service loaner, having been around them for 8+ years.

Not sure why they wouldn't give a Car Proof. There is no disclosure law in Ontario for something like a service loaner, as it is not classified as a daily rental.
2013 Wins - $1320 - Woohoo!
Member
May 5, 2016
328 posts
140 upvotes
Toronto
redblack wrote:
Mar 20th, 2017 10:59 pm
Whenever I get a service loaner I drive it pretty hard, lots of quick acceleration, braking and fast driving through puddles, pot holes etc.

I would never buy a service loaner or rental car.
So if you booked a night at a hotel room, are you going to flip it inside out as well ? I really don't understand the logic of intending to ruin something that isn't yours.
Deal Guru
User avatar
Dec 2, 2008
11060 posts
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redblack wrote:
Mar 20th, 2017 10:59 pm
Whenever I get a service loaner I drive it pretty hard, lots of quick acceleration, braking and fast driving through puddles, pot holes etc.

I would never buy a service loaner or rental car.
Truth.
[OP]
Newbie
Oct 27, 2009
48 posts
9 upvotes
Thanks to all for your replies. Seems unanimous that the loaner was a bad idea. I managed to back out with a full refund since they BS'd about the cars history.

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