Car Buying Online: The Facts

Before the Internet all car buying had to be done in person.  Prospective car buyers would go from one car dealership to the next looking for the right automobile for them.  However, in the process, they would have to deal with car salesmen, who didn’t necessarily have their best interest at heart when it came to pricing.  Yet nowadays just like car loan shopping, a person can bypass that involvement by buying cars online. 

How does one go about trying to purchase a car through the Internet?  First, they must find a site that specializes in online car buying.  These sites could be in an auction format, (like E-Bay Motors), or designed like a shopping comparison site.  The latter tend to be more popular.  Examples of these types of sites include Auytobytel.com, AutoTrader.com and CarsDirect.com. 

If one decides to buy a car through an auction site, the process works like any other online auction.  They would place a bid for a vehicle that interests them.  This vehicle doesn’t even have to be in their state, since at the worst case they could use a service that specializes in long-distance towing.  Anyway, if they are able to bid the highest, they will be able to purchase the car.  Car sellers may alternatively decide to list their auction with a fixed-price option.  This allows a car buyer to purchase the vehicle at a set price without going through the hassle of bidding.

On the other hand, car buying sites designed in a shopping comparison format work differently.  First, they ask the car buyer what type of car they are looking to buy.  They will then return listings of vehicles that match the specified criteria.  The user is expected to select one that interests them.  Then, depending on how the car buying site is setup, it will either send free dealership quotes to a person’s email or it will return a dealership list instantly, right after the desired car has been selected.

If a person wants to buy from one of the dealerships working with the car buying site, they will have to visit the dealership in person to make the final purchasing arrangements.  During this process they are free to try and get a lower price, just as they would if they had not gone online in the first place.  Car salesmen that make sales through the Internet get commission based on the volume they are able to sell, so they are more willing to try and make good deals.  However, it should be noted that some car buying sites, (such as CarsDirect.com), have already negotiated the lowest price possible for the consumer.

Car buying online is similar to searching and comparing auto loans online.  Both processes can offer a lot of convenience for car buyers as well as significant cost savings.  They don’t have to waste time going to every car dealership in the city looking for a good deal on a car or looking at individual banks and dealerships for best car loan rates.  Nor do online car and car loan shoppers have to sit through a car salesman’s pitch.  Indeed, when one car shops online, consumers may be able to get the vehicle of their dreams quickly, easily and affordably.

Tags: auto loans, Car loan, car loan rates

This entry was posted on Monday, May 25th, 2009 at 6:13 pm and is filed under Articles. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.