In 2022, USAA, a financial services group renowned for serving members of the U.S. military and their families, discontinued its car buying service. This change, initially announced in 2020, ended a popular member benefit and the partnership with TrueCar. For many loyal USAA members who relied on this service to simplify their car purchasing experience, the question now is: how did the USAA car buying program work, and what are the best options available today?
While USAA no longer offers its car buying program, understanding how it functioned can help members appreciate the alternatives now available. Historically, the USAA Car Buying Service operated by partnering with TrueCar. This collaboration provided USAA members with a platform to:
- Research vehicles: Members could browse different makes and models, compare prices, and read reviews.
- See upfront price quotes: The service offered transparent pricing information from certified dealers in their network, aiming to reduce negotiation hassles.
- Connect with certified dealers: USAA members could get in contact with dealerships that were pre-screened by TrueCar, theoretically ensuring a better buying experience.
Essentially, the USAA Car Buying Service was a referral network that leveraged TrueCar’s platform to offer a streamlined car buying process to its members. However, with its discontinuation, USAA members, and anyone seeking a hassle-free car buying experience, need to explore alternative solutions. Let’s delve into three top car buying services that stand out in 2024.
Top Alternatives to the USAA Car Buying Program in 2024
#1 CarEdge
CarEdge has emerged as a leading pro-consumer car buying service, explicitly designed to remove the stress and complexities from purchasing a new vehicle. Many users consistently praise CarEdge Concierge as a remarkably easy and effective way to buy a car in 2024. Unlike services that simply connect you to dealerships, CarEdge offers a personalized approach.
Pros
- Personalized Concierge Service: You are assigned a dedicated CarEdge Concierge who takes the time to understand your specific needs and preferences. They then actively search for the ideal car and skillfully negotiate pricing on your behalf, acting as your advocate throughout the entire process.
- Significant Savings Through Expert Negotiation: CarEdge claims that customers save an average of $3,000 due to their concierge’s negotiation expertise. This potential saving can offset the service cost and provide real financial benefit.
- Convenient Home Delivery: To further enhance convenience, CarEdge offers home delivery in many locations, saving you time and effort in picking up your new car.
- Excellent Customer Reviews: CarEdge boasts 5-star Google reviews, reflecting high customer satisfaction and trust in their services.
- Independent and Pro-Consumer: CarEdge operates independently from car dealerships and auto manufacturers, ensuring their loyalty remains solely with the car buyer. This independence allows them to prioritize your best interests during negotiations.
Cons
- Service Fee: CarEdge Concierge service comes with a $999 fee, and shipping costs are additional and vary depending on distance. This upfront cost may be a consideration for budget-conscious buyers.
- Limited Availability for Rare Models: CarEdge currently does not service rare or limited production vehicle models, which might be relevant for enthusiasts seeking very specific cars.
- Geographic Limitations: The service is not yet available in Alaska or Hawaii, limiting accessibility for residents of these states.
Explore CarEdge Concierge’s car buying service in detail
#2 Navy Federal Car Buying Service
For members of Navy Federal Credit Union, which includes veterans, active-duty service members, and their families, the Navy Federal Car Buying Service offers a TrueCar-powered online platform. This service provides upfront pricing and a straightforward online car search experience. Similar to how the USAA program once functioned, Navy Federal leverages the TrueCar network.
Pros
- Free for Navy Federal Members: This service is included as a benefit of Navy Federal Credit Union membership, making it a cost-effective option for eligible individuals.
- Online Car Search and Upfront Pricing: The platform provides a convenient online interface to search for cars and access upfront pricing information, promoting transparency.
Cons
- Reliance on TrueCar Certified Dealers: The service is restricted to dealerships within the TrueCar Certified Dealer network, potentially limiting vehicle selection and dealer choices compared to a broader market search.
- Lack of Personalized Concierge Support: Unlike CarEdge, Navy Federal’s service does not include a personal concierge or customer advocate to assist with negotiation or personalized guidance.
- Dealership Visits Likely Required: While the online platform streamlines initial research, finalizing the purchase and taking delivery typically necessitates visits to the dealership.
Learn more about the Navy Federal Car Buying Service program, and compare Navy Federal to CarEdge for a detailed comparison.
#3 Costco Auto Program
The Costco Auto Program, available to Costco members, provides access to a network of pre-approved dealerships. While Costco receives payment from participating dealers, the program aims to offer members a simplified car buying experience through this network. However, some users report experiencing typical dealership negotiation processes even with this program.
Pros
- Included with Costco Membership: Similar to Navy Federal, the Costco Auto Program is a perk of Costco membership, adding value to existing memberships.
- Pre-approved Dealer Network: Costco pre-screens participating dealerships, intending to provide members with a more trustworthy and reliable dealer network.
- Trade-in Assistance: The program offers assistance with trade-in vehicles, potentially simplifying the process of selling your old car.
Cons
- Buyer Still Negotiates at Dealership: A key drawback is that buyers are still expected to negotiate pricing directly with the dealership, diminishing the “hassle-free” aspect that some car buying services aim to provide.
- No Personal Concierge or Advocate: The Costco Auto Program does not offer personalized support from a concierge or advocate to guide you through the buying process or negotiate on your behalf.
- Potential Dealer Bias: As Costco is compensated by participating dealers, there is a potential for inherent bias in the program, as dealerships are essentially paying for access to Costco members.
Explore the Costco Auto Program further, and see a comparison between Costco and CarEdge to help you decide.
Choosing the Right Car Buying Service for You
While the USAA car buying program is no longer an option, several excellent alternatives exist in 2024, each with unique strengths. When considering which service best fits your needs, evaluate what aspects of car buying are most important to you.
If you prioritize a fully personalized, hands-off experience where expert negotiation is handled for you, CarEdge Concierge stands out as a strong contender. For those eligible for Navy Federal Credit Union membership, their car buying service offers a free, online-driven approach. Costco members can leverage the Costco Auto Program for access to a pre-vetted dealer network, but should be prepared for traditional dealership negotiations.
Ultimately, by understanding how the USAA car buying program worked and exploring these alternatives, you can make an informed decision and navigate the car buying process with greater confidence and potentially better outcomes.
