New or used? Gas or electric? Buy or lease? When you decide to buy a car, there are no shortage of questions that need to be answered, including in-person or online?
Read more: Get your spending on track before purchasing your next vehicle
Is buying a car online right for you?
While that depends on your individual circumstances, it does offer several benefits, including:
Flexibility and convenience: Complete much of the transaction online and avoid the hassle of visiting multiple dealerships.
Access to a wide range of options: Browse vehicles from various dealerships, not just those nearest to you.
No time-constraints: Shop anytime, without being restricted by business hours.
Six easy steps to buying your next ride online
1. Set your car-buying budget
As car prices continue to fluctuate, a firm budget can help you better weather any market changes, as well as resist the temptation to indulge in extra add-ons that are more accessible online.
As you build your budget, make sure it includes:
Down payment
Monthly payments (if you plan on financing your car)
Taxes
Fuel
Routine maintenance
2. Get pre-approved for auto financing
With auto financing preapproval, a finance company will do a cursory review of your income to determine what kind of financing terms you might qualify for. Credit score standards for vehicle financing can help you prepare effectively for a car loan application. While preapproval doesn't lock in a specific rate, it can tell you which finance company is likely to offer the best deal and can give you a baseline for price negotiations with whichever dealership you choose.
The digital car lot allows you to dive in with side-by-side comparisons of different makes and models.
3. Research the kind of car you want
Be sure to ask yourself the right questions: Do you need a large vehicle because you have a big family? Are you big on the outdoors and want off-road ability? Are you interested in a new car, which often comes with the latest technology but also a higher price tag? Or a used car, which can have a lower purchase price but more potential repair costs?
Once you've narrowed your vehicle preferences down, the research begins. The digital car lot allows you to dive in with side-by-side comparisons of different makes and models.
If you're going to sell your existing car or trade it in for your new car, it's also smart to take a look at its trade-in value or sale price. Sites like Edmunds, Kelley Blue Book and Carfax can give you access to this information.
4. Start car shopping on trusted online platforms
Just like you'd stop by multiple lots in real life, you can shop at multiple dealerships simultaneously online, too. Whether you buy from a dealership or a private seller, research their reputation, reviews and track record.
Even though you're shopping online, buying from an in-state seller can save you some time. If you end up buying a car from an out-of-state seller, consider state laws regarding specific registration requirements and emissions testing. You should also be aware that you’ll likely pay sales tax in your home state, even if the car isn’t purchased there.
5. Know how to spot and avoid scams
Unrealistic deals, seller pressure and requests for unusual payment methods can all be red flags when buying a car online. Avoid them by sticking with reputable dealerships, obtaining vehicle history reports (VHR) and ensuring the Vehicle Identification Number (VIN) on the car matches the one in the VHR.
6. Finalize your car purchase and arrange delivery or pickup
Once you’ve found the car that’s right for you, it’s time to purchase. Even online, there’s always room for negotiation. Contact multiple dealerships to get competing bids. You might find one exceptionally driven to sell or another willing to give you upgrades at no extra cost. Once you’ve made your purchase, the final piece of the puzzle is getting your vehicle. You typically have two options: delivery or pickup. For many, one of the biggest draws of buying a car online is having it delivered straight to your home or office. Keep in mind this service can come with delivery fees. If you prefer to drive off the lot, you can coordinate with the dealership to schedule an in-person pick-up time.
Fine-tune your car shopping
Convenience is the word when it comes to buying a car online. With just one click — and the power of online shopping — you can research and shop at the same time, saving time and potentially dollars.
