Like so many things, car buying is moving online. Companies like Carvana and Vroom offer new and used vehicles you can buy over the internet and have delivered to your home. It’s like Amazon for drivers.
Just like online shopping for anything else, buying a car online has its ups and downs. It’s up to you to decide whether the advantages are worth it. Let’s take a look at the pros and cons of online used car buying.
The Advantages of Buying a Used Car (or Any Car) Online
First and foremost, online shopping is extremely convenient. You can shop 24 hours a day, seven days a week, every day of the year. As long as you have an internet connection and the website is functioning, nothing is stopping you from looking at as many cars as you like, except possibly your need for sleep.
You don’t need to go anywhere or talk to anyone. You save time, fuel, and wear and tear on your current vehicle. Also, it can be exhausting to visit multiple car dealerships, no matter how much you space out your trips.
You will not experience high-pressure sales tactics from car salespeople who seem to come out of nowhere to pounce when you just want to browse a little. Plus, when you have made a decision, online car sales are haggle-free. Let’s face it; the American culture does not lend itself to learning how to negotiate prices.
It’s easier to compare vehicles online. You can pull up the specifications and pricing side by side. When everything is right in front of you, you can relax and peruse the possibilities.
Also, online dealers have the advantage of offering vehicles from anywhere in the country or the world. Your chances of finding certain vehicles increase appreciably when you can pull products from the entire continent. If you have your heart set on a popular model, you will probably have better luck finding it this way. You have a wide range of choice in makes, models, years, options, mileage and any other parameter you are using to make your decision.
All of these advantages are powerful incentives to do your car shopping online. But before you do, let’s look at the disadvantages of buying a car online, particularly a used one.
The Disadvantages of Buying a Used Car Online
When you shop online you run into the biggest complaint people have about any internet sale — you can’t touch the product. There is no kicking the tires, checking for dents, or having your favorite mechanic go over the car to look for problems.
The only way to learn if a particular model “fits” you is to visit a physical dealership or take a free test drive at an auto show. If you're lucky, maybe a friend or family member has one you can check out. But you still won't be able to assess the actual car you are buying when the sale is online. You won’t know how well it was maintained or if it smells funny.
Other problems are inherent in the system.
- The process for online car buying is not perfect. Just go to Yelp or another review site to see the difference in buying experience people have had.
- Due to high volume, you may not be able to look at decent pictures of the actual car. Instead, you may be stuck with stock photos of the make and model, which tell you nothing about the vehicle for sale.
- Negotiating on price is difficult, although most online dealers and an increasing number of physical dealers are no-haggle.
- Completing the paperwork and receiving your car can take forever. Some jurisdictions still don't accept an electronic signature, so you are stuck with the U.S. Postal service to get documents signed and delivered. Some car sales come with a limited guarantee, which may expire before you receive your car if there is a delay.
- You may be charged a shipping fee depending on how far you are from the dealer’s hub.
- You may find it difficult to ensure the car you are buying meets state regulations. For example, California has some stiff emissions standards. If the car comes from elsewhere, you may not know whether it passes inspection until you receive it.
- There is no face to face interaction, although you may be avoiding it by going online anyway. Also, if there is a problem who will you contact? Not the local dealer, but a customer service representative over the phone.
It’s quite a laundry list of disadvantages but, depending on your situation, you may not care about some of these issues.
What Is the Same?
A few things are the same whether you buy a car online or at a dealership.
- Both will probably provide a Carfax or Autocheck vehicle history report.
- Both may have financing with their own lending solutions.
- Vehicles go through a multi-point inspection, regardless of whether the sale is online or at a dealership.
- Both have the same approach to late model cars that are still covered by factory warranty.
- Both accept trade-ins.
There are also things you should do whether you buy online or at a dealership.
- Insist on a vehicle history report.
- Make sure the title is squeaky clean — no liens, salvage records, and so forth.
- Ensure the car was inspected before it went on the market.
- Read online reviews of the car you are considering. Check Edmunds.com or Consumer Reports.
- Verify the selling price is firm. You don’t want any surprises when the car is delivered. Review the contract, understand the financing, and check out any warranties to make sure you are clear on what is and is not covered.
- Try to the get the vehicle’s service records.
A vehicle, new or used, is a significant purchase. Do all your homework from the time you start shopping through delivery.
Which Should You Choose — Online or Dealership?
If you are considering an online purchase, ask yourself why you don’t want to go to a car lot. Be very clear on the reasons for your decision. Weigh the pros and cons to determine which experience would make you more comfortable, and don’t rush into anything. A car will still be there when you are ready.
Either way, check authoritative reviews of the car you want to buy, the dealership or online company, and be thorough with your assessment of any vehicle.
Are you ready to shop?
