AAA Car-Buying Review
- AAA’s car-buying service can reduce the stress of shopping due to its pre-negotiated prices with participating dealers.
- If you take out a AAA auto loan in conjunction with the car-buying service, you could score an extra 0.25% off your financing rate.
- You’ll have to provide your contact information to the car-buying service, meaning you should expect a number of calls and emails from participating dealers.
- The prenegotiated price you receive may not be as good as you could get yourself through negotiation.
The American Automobile Association, or AAA, is perhaps best known for its towing service, which comes free of charge to members. But did you know that you can also use AAA to buy a car?
The AAA car-buying service can help you compare vehicles at participating dealers and access exclusive member prices. If you pair the car-buying service with an AAA auto loan, you could get an extra 0.25% discount on financing.
How the AAA car-buying service works
AAA partners with TrueCar to provide pricing through its car-buying service, which is only available to active AAA members. Here’s how the process works:
- Research your vehicle: You can’t get the right vehicle for you without doing some planning. First, think in broad terms about what you’re looking for. Do you want a two-door sports car that you can push to the limits, or do you need to think more practically in terms of fuel economy and a growing family? Research makes and models and use an auto loan payment calculator to make sure your desired car fits your budget. When you have a car in mind, head to the AAA car-buying platform, powered by TrueCar. You can specify options and color or let TrueCar “build” a trim package for you.
- Get AAA member pricing: Once you’ve decided what vehicle you want, it’s time to get real-world pricing. On the AAA car-buying platform, select the vehicle you want and fill out a form with your contact information when you’re ready to buy. Be ready to take this step because within a matter of minutes or even seconds, you’ll begin receiving multiple offers from certified dealers in your area. These prices will include your AAA membership incentives.
- Visit the dealer: If you receive a good offer on a car you want, head to the dealership to take a test drive. If all goes well, the dealer will have the paperwork ready for you to fill out on the spot. Remember that the price you receive will be valid whether you take out an auto loan or pay cash.
Pros and cons of the AAA car-buying service
Even the best car-buying services have pros and cons, and AAA is no different. Here are some things to pay attention to.
Pros
- Provides access to special pricing and/or manufacturer incentives: Car manufacturers frequently work with AAA (and other car-buying services) to offer members-only deals on specific makes and models.
- No negotiating: Most of the stress that comes from buying a new car comes from the haggling process. Not only can it take all day, but most buyers are simply outmatched when it comes to the negotiating tactics of in-house dealers. But when you use AAA’s car-buying service, the price you see is what you get. Offers from participating dealers will already reflect AAA member pricing, no haggling required.
- Available for both new and certified pre-owned vehicles: The AAA car-buying service applies to both new and certified pre-owned vehicles at participating dealerships. Many used car buyers have concerns about dealing with unknown third-parties, so being able to work with a reputable dealer directly and getting a certified pre-owned vehicle can relieve a lot of the stress.
- Can earn a 0.25% APR discount: Using the car-buying service and financing with a AAA auto loan can net you 0.25% off your auto loan rate when you set up qualifying automatic payments. Over the life of your loan, this can save you a significant amount of money.
Cons
- Only AAA members can access the service: You can only use the AAA car-buying service if you are a AAA member, which requires a paid membership.
- Only participating dealers are eligible: If you have a preferred dealership but it’s not in the AAA program, you can’t use the service. In some cases, this means you might have to travel a distance to get the car you want. It also means you can’t buy a car from a private party.
- You may be able to negotiate a better deal on your own: The price you receive from the AAA car-buying service is fixed. You can’t arrive at the dealership and then try to negotiate a better price.
- Expect frequent contact: When you use the AAA car-buying service, you’re literally asking dealers to contact you. Don’t be surprised if you’re exposed to multiple follow-ups from numerous dealers.
AAA auto loans
AAA offers auto loans in select states. Unlike its car-buying service, you don’t have to be a AAA member to borrow. You can find financing for new and used cars, including auto refinance loans and lease buyouts.
Although AAA doesn’t specify what credit score you need to buy a car, the lowest rates go to people with 740+ credit scores. Not sure where you stand? Check your credit score for free with LendingTree Spring. Here’s what else you should know about AAA auto loans:
| Starting APR | 4.99% (with autopay) |
| Loan amounts | $5,000 – $100,000 |
| Available loan terms | 36 to 84 months |
| Vehicle age | Not specified |
| Minimum credit score | Not specified |
AAA car loan rates may vary by state. The rates above are based on ZIP code 33803.
AAA car loans are only available in the following states:
- Colorado
- Florida
- Georgia
- Illinois
- Indiana
- Iowa
- Michigan
- Minnesota
- Nebraska
- North Carolina
- North Dakota
- South Carolina
- Tennessee
- Wisconsin
Joining AAA
You have to be an AAA member to use its car-buying service, but you can join online at any time. Even if your membership is only five seconds old, you’re eligible to use the car-buying service.
AAA plans and pricing depend on where you live. The best way to see what AAA offers in your area is to compare plans using your ZIP code. For reference, here’s an overview of AAA membership in central Florida.
| Level | Cost per year | Membership benefits |
|---|---|---|
| Classic | $79 |
|
| Plus | $117 | Everything in the Classic membership, plus:
|
| Premier | $144 | Everything in the Plus membership, plus:
|
Pricing and promotions above are based on ZIP code 33803 and reflect introductory pricing that is valid for the first year of membership.
Alternatives to the AAA car-buying service
AAA isn’t your only option for a no-haggle experience when it comes to buying a car. You might already qualify for a car-buying service through your credit card, warehouse club or credit union.
- Costco Auto Program: The Costco Auto Program works like AAA’s by providing members with discounted vehicle offers and services. Sam’s Club also offers a similar program.
- Credit Unions: PenFed also uses TrueCar to bring its members special pricing from participating dealers. Navy Federal Credit Union has a program, as well.
- Used car websites like Autotrader and Carvana: Browse our list of the best used car websites and apps. Each of our top picks operates entirely online and many are available to buyers nationwide.
Is the AAA car-buying service right for you?
The AAA car-buying service might be a good fit if you want a stress-free dealership experience. You can shop for cars, compare prices and depending on the make and model, qualify for a members-only rebate or incentive.
AAA also offers auto loans, and you don’t have to be a member to get one. But there’s a hitch: AAA car loans are only available in 14 states. If you qualify, AAA car loans can come with a 0.25% rate discount for signing up for autopay.
At the same time, you may be able to save money by skipping the car-buying service and negotiating with the dealer yourself. You also wouldn’t be limited in terms of the vehicles you can buy and the dealers you can work with, including private parties.
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