Car Buying Service vs. Negotiating Yourself: Who Pays, Who Negotiates, Which to Pick
Car buying services range from dealer-paid referral programs with fixed prices to paid negotiators. Who pays each one, and when negotiating yourself wins.
Negotiating yourself costs nothing but time, and it wins if you will get three or more written out-the-door quotes and push back on each one. A car buying service is worth it when it actually negotiates on your behalf and you would not otherwise. The catch is that "car buying service" covers very different things. Referral programs like the Costco Auto Program are free to you because dealers pay to take part, and their prices are fixed, so nobody haggles. Paid negotiators charge you, and should work only for you. The first question to ask any service is who pays it.
01The four ways to buy, side by side
| Who pays | Who negotiates | What you get | |
|---|---|---|---|
| Negotiate yourself | No one | You | Whatever you push for, if you push |
| Referral or membership program | The dealer pays the program | No one; the price is preset | A participating dealer's preset price |
| Paid broker or concierge | You; terms vary | A person | A negotiated deal, at their pace |
| Negotiation system (Motrix) | You; Deal and Pro: $0 until you sign | The system, with you approving | Itemized written quotes from several dealers, pushed down |
02Referral and membership programs
These programs connect you with participating dealers that have agreed to a price in advance.
- Costco Auto Program. Members get preset pricing from participating dealers. Dealers pay fees to take part, and "those fees are the only profit Costco takes in the transaction," according to Capital One's explainer. The same source is direct about negotiation: "don't expect to be able to haggle for a better price."
- Consumer Reports Build & Buy. Run with TrueCar, it lists more than 13,000 participating dealers, and participating dealers price their inventory in advance. Consumer Reports discloses that TrueCar pays it a flat fee for each vehicle sold through the service.
These are useful as a price check: a preset number, in writing, with no back-and-forth. They are not negotiation. Nobody on your side is pushing that number down, and the dealer still runs the F&I office after the price is set. Use the preset price as one quote, then ask other dealers to beat it.
03Paid brokers and concierges
A broker or concierge is a person who negotiates the deal for you. Fees and terms vary widely, so get these answers in writing before you sign up:
- What is the fee, and when is it owed? Upfront, only if you buy, or a share of the savings?
- Does any dealer pay them too? A broker who also takes money from the selling dealer has two clients.
- How many dealers will they contact? One relationship dealer is a referral, not a competition.
- Will you see the written quotes? You should see each dealer's itemized number, not just the one they recommend.
04Negotiating yourself
Doing it yourself is free and works well if you follow through. The FTC's own advice is the core of the method: get an "out-the-door" price in writing (such as email) before you visit, and shop for financing before you shop for the car.
In practice that means:
- Send the same request to three or more dealers for the exact car.
- Answer every dodge by asking again for the itemized total.
- Forward the lowest total to the others and ask them to beat it.
- Settle the price before you talk trade-in or financing.
The scripts are in how to negotiate a car price by email and text. The cost is time: several days of replies and follow-ups. If you will not send the third follow-up, the dealer that never answered properly keeps its number.
05Where Motrix fits
Motrix is a negotiation system. You tell it the car you want. It looks up recent sold prices for the same trim to set a target, sends requests to the shortlisted dealers, gets each dealer's itemized out-the-door price in writing, and pushes back on every line. You see the written quotes and approve the final number. Deal and Pro: $0 until you sign.
Motrix buyers have closed $4,011 off sticker on a Telluride and $3,400 on a CX-50. Results depend on the car, the market and the dealers. For how Motrix compares with other services on price and approach, see the comparison page.
06Which should you pick?
- Pick negotiating yourself if you have the time, you are comfortable saying no, and you will follow up with several dealers until you have written totals.
- Pick a referral program if you want a fast preset price and can live with no negotiation, or use it as one quote among several.
- Pick a paid service or a system if you want the negotiating done for you. Choose one that works only for you, shows you every written quote, and charges in a way you understand before you start.
Want the negotiating done without the inbox? Start a brief. Motrix gets each dealer's itemized number in writing and pushes back on every line. Deal and Pro: $0 until you sign.
07Questions buyers ask
Is a car buying service worth it?
It is worth it if it actually negotiates for you and you would not do it yourself. A referral program that passes along a preset dealer price saves time but does not negotiate. Ask who pays the service and whether it pushes the number down.
Can you negotiate a Costco Auto Program price?
Not through the program. Its prices are preset and, per Capital One's explainer, fixed. You can use it as one written quote and ask other dealers to beat it.
Who pays a car buying service?
It depends. Referral programs are usually paid by the participating dealers. Brokers and concierges are usually paid by the buyer. Ask before you sign up, and ask whether any dealer pays them too.
Is it better to negotiate a car price yourself?
It can be, if you get three or more written out-the-door quotes and push back on each. The method costs nothing but time. See the email and text scripts.
How much does Motrix cost?
Deal and Pro: $0 until you sign. Motrix gets each dealer's itemized out-the-door price in writing and pushes back on every line, and you approve the final number. See the comparison page for details.