Ever taken your car in for service and been offered a temporary replacement? That’s a loaner car — a complimentary vehicle provided by dealerships or repair shops to keep you moving while your car is in the shop.
In the U.S., loaner cars are commonly offered by franchised dealerships — especially those representing luxury brands — to customers with vehicles under warranty.
Here’s everything you need to know about loaner cars, including who qualifies, what’s covered, and how they differ from rentals.
What Is a Loaner Car?
A loaner car is a vehicle temporarily provided to you — usually free — while your own vehicle is:
- In for repairs
- Being serviced under warranty
- Undergoing a recall or dealership fix
Loaners are often provided by dealerships, especially for customers whose vehicles are still under manufacturer warranty.
When Do You Get a Loaner Car?
You may qualify for a loaner when:
- You bring your car in for warranty repairs
- The dealership will keep your vehicle overnight or longer
- The service is being covered by a recall or extended protection plan
- You ask in advance and the dealership has availability
Not all services qualify — and not all dealerships offer loaners. It often depends on:
- The brand (luxury brands offer them more commonly)
- The terms of your warranty or service agreement
- Availability of fleet vehicles at that location
What’s the Difference Between a Loaner and a Rental Car?
| Feature | Loaner Car | Rental Car |
|---|---|---|
| Cost | Usually free | Paid by customer (or reimbursed by insurance) |
| Provided By | Dealership | Rental agency |
| Purpose | Short-term use during service | Flexible — travel, replacement, etc. |
| Vehicle Type | Often matches your own brand/model | May vary widely |
Some dealerships partner with rental companies (like Enterprise) to provide loaners, but the dealership still manages the transaction for you.
What to Ask Before Accepting a Loaner
✅ Is there any daily mileage limit?
✅ Do I need to refuel before returning?
✅ Am I responsible for damages or minor dents/scratches?
✅ Will I need to sign a separate agreement?
Even though it’s free, you’re usually responsible for:
- Fuel
- Insurance (your personal policy usually covers it, but confirm)
- Returning the vehicle in clean, undamaged condition
Are Loaner Cars Covered by Insurance?
✅ Yes — in most cases, your personal auto insurance extends to loaner cars.
However:
- Confirm with your insurance provider
- Dealership may also provide secondary coverage
- Some dealerships may require proof of insurance before handing over keys
In most U.S. states, your personal auto insurance policy will cover a loaner car the same way it covers your own. Still, it’s smart to double-check with your insurer and confirm the dealership’s requirements.
Do All Dealerships Offer Loaner Cars?
No. Loaner programs vary by:
- Brand (e.g., Lexus, BMW, and Audi are more likely to offer them)
- Dealer policy
- Service center size
Always call ahead and ask if you’ll qualify for a loaner, especially for routine maintenance or minor repairs.
Related: Car Loan with Bad Credit
Working through car financing? Knowing how services like loaners work is part of managing auto ownership wisely — even with tight budgets or credit challenges.
Final Thoughts
A loaner car can make a dealership experience much more convenient — but it’s not guaranteed. If you’re planning to be without your car for more than a day, always ask in advance about availability, insurance, and expectations. It’s a great perk — just know the ground rules.
