Loaner Cars

Introduction

Luxury vehicles are the ultimate in automobile style, delivering an unmatched blend of performance, sophistication, comfort, and technology. Not everyone gets to drive a luxury car on a daily basis, however. Fortunately, the Loaner Cars majority of luxury dealerships have a solution—an auto loaner. An auto loaner is usually provided when a customer’s main vehicle is being serviced or repaired. While the end goal is convenience, for luxury car brands, it is also a tactical way to showcase their newest models. In this Luxury Cars Overview, we examine how a loaner car program enhances the luxury car experience and serves as an on-ramp to ownership for many.

The Role of Loaner Cars in the Luxury Auto Industry

Customer experience is everything in the luxury car business. Retailers of luxury brands like BMW, Mercedes-Benz, Audi, Lexus, and Cadillac realize that product quality is only rivalled by service quality. That’s where the loaner car comes in. When a customer brings his car in for maintenance, the dealer provides a loaner car—a new or new-model car from the same luxury brand. This keeps the customer moving and enjoying the continued luxury they want.

As opposed to typical rentals, the loaner vehicle is typically included in the cost of service or offered at a token charge. It’s not just giving them a ride—it’s about maintaining brand loyalty and enhancing the perception of quality on the part of the customer. The loaner vehicle also serves as an unwritten salesperson; customers can get to try out the latest features first hand, typically generating interest in upgrading.

What Makes a Luxury Loaner Car Different

Not all loaners are created equal. In the luxury market, even a short-term substitute must represent the image of the brand. A luxury loaner vehicle is typically less than two years old, has minimal mileage, and is well-maintained. Such vehicles are typically top-of-the-line trims, representing the most advanced technology in the automobile world.

Amenities such as massaging leather seats, panoramic sunroofs, adaptive cruise control, head-up displays, and sophisticated safety features are typical in these loaner vehicles. This means clients are able to experience the entirety of what the brand offers. Take for instance a person who is used to driving a 3-series BMW; they might be given a 5-series loaner vehicle, and get to experience the next level in luxury and performance.

The Power of Marketing Loaner Cars

Although the main purpose of a loaner car is to be a temporary vehicle for customers, its secondary purpose is potent marketing. Dealerships know that the longer customers are in their cars, the more likely they are to fall in love with the driving experience. For many, the loaner car is their first actual exposure to a newer model or a higher trim level.

It’s not unusual for customers to bring back their own car for service and indicate interest in purchasing the same model they used as a loaner vehicle. This experiential exposure performs better than brochures and test drives. The dealership effectively converts what otherwise would be a minor hassle (such as the servicing of a vehicle) into a sales opportunity and an opportunity to make a positive impression.

Customer Satisfaction and Brand Loyalty

High-end car buyers expect premium service, and the loaner car program is an important part of meeting and exceeding those expectations. Having no car to drive can be a hassle, especially for buyers who are used to a level of comfort and convenience. A fully equipped loaner car helps them continue their lifestyle and indicates that the company values their time.

Also, this service earns loyalty. A customer who is regularly given a clean, luxurious, and current loaner car will come back to the same dealer for subsequent service—and perhaps their next buy. It makes a potentially frustrating experience an enjoyable one, generating good feeling about the brand.

Standard Policies for Loaner Cars

While the idea of driving a loaner car in luxury may be tempting, there are usually terms and conditions to be aware of. Most dealerships have procedures to protect their fleet. These could include mileage limits, fuel charges, insurance standards, and stipulations about who can drive the car.

In general, to get a loaner car, the customer must have service that will last longer than an hour or two and must provide proof of insurance. Some dealerships only offer loaner cars for warranty work or specific service packages. It is a good idea to call the dealer and inquire what they have in terms of their loaner car program before dropping off your vehicle.

Loaner Cars vs. Test Drives

Most individuals get a loaner car and an extended test drive confused, but they have different functions. A test drive is brief and controlled and is intended to present a quick impression of the car. A loaner car provides an extended, everyday exposure.

You can use the loaner vehicle for daily commuting to work, grocery shopping, and even a weekend drive. This kind of usage allows potential buyers to experience the performance, comfort, fuel economy, and innovative features in everyday driving. Hence, the loaner vehicle is a great car to make an informed buying decision.

Certified Pre-Owned Loaner Cars for Sale

One more benefit of the loaner car program is that after these cars have acquired a significant amount of mileage or time, they are sold as Certified Pre-Owned (CPO) cars. These CPO loaners are well-maintained, lightly used and less expensive than new cars, so they are a bargain.

For consumers who want to get their feet wet in the luxury market without investing full price, buying a used loaner car can be the solution. They enjoy the reliability and amenities of a luxury car with warranty protection from dealerships and certification—at a reduced cost.

Conclusion

Luxury isn’t just owning a car in the luxury automotive world—luxury is all the experience a customer has with the brand. A loaner vehicle is more than a short-term substitute for a couple of days—its a calculated part of customer satisfaction, brand loyalty, and marketing. From giving clients an effortless experience to retaining test drivers as repeat clients, the loaner vehicle is everything a luxury brand represents: reliability, refinement, and an uncompromising pursuit of perfection.

Whether you’re in the market to discover what your next car upgrade is or just having your car serviced, an experience with a loaner car provides you with a first-hand glimpse at what the luxury lifestyle is all about.