Buying a Car on the Internet

Buying a Car on the Internet

Cars If you're thinking about buying a car over the Internet, then you're going to be pleasantly surprised.  Buying a car on the World Wide Web is a fairly simple process.  It also eliminates a lot of the unpleasant experiences often associated with a visit to the local car dealership.

Advantages of Buying a Car Using the Internet

If you happen to sell cars for a living and you're honest in your dealings with customers, then you shouldn't be offended by any of the following statements we're going to make in this publication.  That's because we're not talking about salespersons and dealerships that treat their customers fairly.

Buying a Car at a Dealership

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We're talking about individuals selling cars that give car dealers a bad name.  For some of us, this is what we actually experience when we bought a car in the past:
  • Bait and Switch Tactics - working with a salesperson to purchase one type of car, only to find that salesperson is now trying to get you to buy another car.
  • Haggling - while some people might actually like the idea of negotiating with a salesperson in the hopes of striking the best purchase price on a new car, to many of us that entire process is pretty upsetting.
  • Hard Sells - if there is one thing that any salesperson learns through experience it is that you need to close the deal.  Some salespersons simply don't know when to give up, and high-pressure sales tactics, which occur at some car dealerships, are annoying to virtually everyone.

Buying a Car Online

The nice thing about buying a car over the Internet is that all of the negative face-to-face interactions are eliminated.  You can research your car from the comfort of your own home, and you can take your time making a decision.  One big advantage of buying a car this way is there's a lot of information right at your fingertips.

Buy a Car Online in Four Simple Steps

For anyone convinced that buying a car over the Internet offers some big advantages, we've outlined a "how to buy a car online in four simple steps" below:
  1. Conduct research to find the car you think you want to buy.
  2. Test-drive several of the cars you've identified in your research.
  3. Research cars again to make sure you're making the right decision.
  4. Comparison shop new car dealers over the Internet.
Later on, we'll be talking about websites you can visit to buy a car online.  But for now we're going to explain how to conduct your research, test-drive a car, and how to make fair comparisons.  This way you can be sure you're getting the best deal.

Researching a Car over the Internet

We've covered researching a car elsewhere in this publication in much greater detail than explained below.  The important part of this first step is to figure out what features you need in a car, and which cars provide you with those features.
Some of the more important factors to consider when researching a car include:
  • Budget - perhaps the single most important consideration is how much car you can afford to buy.  We have some great car loan calculators that can help to simplify this step.
  • Use of Car - are you playing taxi driver to your kids and their friends, or are you looking for basic transportation to and from work?  This is the "practical" part of car research.
  • Reliability and Safety - for many people a car must not only be able to move us from point A to point B, but it also needs to provide us with reliable and safe operation.

Test Driving a Car You're Thinking about Buying

If you think you can buy a car only using the Internet, then we have some bad news for you.  Even if you think a certain car will meet all your needs, you have to test drive the vehicle.  The last thing you want to do is to pick up your car and discover that it has a blind spot that makes you nervous when you drive, or the interior color didn't look like the pictures you saw.
If you're not an "average" person with respect to height or weight (many of us are not average), then it's important to make sure you have enough room in the vehicle to drive or sit comfortably.
Unless friends or relatives own all of the cars you're thinking about buying, then you have to visit a car dealership to conduct your test drives.  Since you're thinking about ultimately buying the car over the Internet, you need to be careful about working too closely with a salesperson. If you do, they might try to claim you owe them a sales commission.
Keep in mind that even if you buy a car online, the dealership might be the same one you visited when you test drove the car; especially if there aren't many competing dealerships in your area.  If that's true, then the dealership might owe a sales commission to someone if you've been working with them on a regular basis.

Researching a Car:  Again

Now that you've narrowed down the field of cars that you can afford, meets your list of requirements, and you enjoy driving, it's time to double back on your car research.  This is especially true if you're having trouble deciding between two makes / models.
Here we are talking about customer satisfaction ratings, fuel economy, safety and reliability.  You can probably go back to some of the same sources you used earlier, but the information you're looking for may be a bit different.  Taking one last look at what others are saying usually helps to solidify a decision.

Comparison Shopping for Cars over the Internet

The final step in our four step process is comparison shopping.  This involves not just comparing offers, but also evaluating those offers versus the car's invoice price.  Here's where the Internet really comes in handy when buying a car.
There are some websites that will actually quote you a price for a new car without any questions asked.  Other sites want you to provide them with some of your contact information before sending you a quote.  We're going to finish this topic up by listing some of the major players in this market, and what you can expect as far as the car purchasing services offered by their websites.

Kelley Blue Book

Kelley Blue Book built its reputation on its used car pricing expertise; the KBB of today offers new and used car buyers much more.  Services you'll find at KBB include:
  • New Car Pricing
  • Used Car Trade In Values
  • Side by Side Car Comparisons
  • Ratings and Reviews
  • Buying Advice
  • Financing and Insurance Tools
  • Used Car Listings
  • Dealer Price Quotes (requires information before quote)

MSN Autos (Formerly Carpoint)

MSN Autos also allows you to research cars and make side-by-side comparisons.  MSN's approach is to leverage the power of its entire network.  Some of the information, such as financing and advice, is not as focused on cars as the information you'll find elsewhere.
The total array of services offered exclusively by MSN Autos includes:
  • New Car Pricing
  • Side by Side Comparisons
  • Ratings and Reviews (from Consumer Reports)
  • Buying Advice
  • Dealer Price Quotes (requires information before quote)

Edmunds

Edmunds is another website dedicated to car buying and research.  Edmunds has some unique approaches to the logical ways people buy a car, such as sorting cars by price.  Other services include:
  • New Car Pricing
  • Side by Side Car Comparisons
  • Ratings and Reviews
  • Buying Advice
  • Used Car Listings
  • Dealer Price Quotes (requires information before quote)

CarsDirect

One of the unique features of CarsDirect is that they provide price quotes without requiring you to supply any of your contact information.  That's a big plus if you're just trying to get a feel for how much you can get off the MSRP (or sticker price).
Perhaps the most comprehensive approach to buying a car over the Internet, services offered by CarsDirect include:
  • New Car Pricing
  • Used Car Trade In Values
  • Side by Side Car Comparisons
  • Ratings and Reviews
  • Buying Advice
  • Financing and Insurance Tools
  • Used Car Listings
  • Dealer Price Quotes

About the Author - Buying a Car on the Internet
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Thank you,
Thomas Ieracitano

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