Buying a new car used to be a real hassle: wasting a whole Saturday at the dealership lot or in the showroom, a salesman talking fast, promising this and that until all you want to do is sign on the dotted line just so you can get out of there. But today, you can browse, compare, and sign that dotted line electronically, all online, and sometimes saving money doing it.
This guide will show you the best steps to take when buying a new car online, from the latest tools to the most valuable insight on freshly manufactured cars, so you can get a great deal without ever setting foot in a showroom.
Buying Cars Online: Not a Passing Trend
With the hectic, non-stop pace of modern life, time couldn’t be more valuable, so the shift in buying cars online versus physically going to dealerships is really no mystery: it’s convenient, transparent, and free of the pressures of haggling with a salesperson under fluorescent lights. Allied Market Research data shows the worldwide online purchasing market will grow to over $720 billion by 2030, which is far from a passing trend.
For those in the market to buy a new car, making the transition to doing so online continues to draw more and more consumers with saving time by not having to deal with sales people dipping out of negotiations to “check with their manager,” and online platforms also offer a wider access to inventories where you’re able to compare offers side-by-side in addition to browsing outside your local market area.
Step 1: Financing
You might be eager to click “Add to Cart” on a brand new car or SUV, but the first step is to get your financing in order. Does your bank or credit union offer vehicle financing with competitive interest rates? Some banks can pre-approve you for financing by just filling out an online application, plus it won’t “ding” your credit score if your credit is poor, you may run into financing snags, however bad credit loans are an option to explore.
One thing to keep in mind is during this financing stage, your credit may be pulled various times by multiple lenders, but being that it’s all occurring in a short time, your overall score won’t be impacted since it’s considered a single inquiry.
Pro Tip: Consider using an online loan calculator to get a ballpark figure on how taxes, fees, and trade-ins may affect your future payments to get an idea of what you’re working with.
Step 2: Which Online Platform Will It Be?
With your financing all set, it’s now a matter of how much of the process you want to do yourself. Car-buying websites work differently, with some being full-service platforms that handle the purchase from start to finish (and delivery), with others operating as marketplaces that connect you with local dealerships. Let’s break it down:
Carvana is a complete full-service online platform offering nationwide deliveries, a fairly easy trade-in process, and a 7-day return window, so if you experience any major problems, you can return it. TrueCar is also a convenient online option that lets you see what other carbuyers paid for the same vehicle make/model, making it much easier to compare and make the best selection for your lifestyle (plus your wallet).
Cars.com lets you access a massive inventory as well as an extensive dealer network with search filters where you can zero in on the perfect fit, new or used in addition to competitive finance plans.
For consumers who already have a specific model in mind, most manufacturers have “Build & Price” tools (for instance, Honda Build & Price) where you can customize the color, trim, and other select features all online with options for comparing the vehicle’s pricing against various marketplaces before pulling the trigger on buying.
Step 3: Compare Across Various Sites and Local Dealerships
When buying a new car online, be sure to compare prices over several sites since the vehicle you have your heart set on can vary by thousands of dollars depending on where you look. Begin with your local dealership sites and check their inventory as well as the price before taxes and other fees. You can also select how you’d like to communicate with their sales team (email, text, etc.) so that the ball is in your court.
When you do speak to a sales rep, see what financing terms, manufacturer incentives or cash-back offers they have. You can also choose the best time for a test drive, and if one dealership doesn’t accommodate your schedule or what you’re looking for, you can simply go to another one without wasting time driving from dealership to dealership.
Step 4: The Art of (Online) Negotiation
Just because you’ve decided to buy your new car online doesn’t mean you still can’t negotiate to get the best possible deal. Since you’re online, you can actually negotiate between several dealerships to match prices for the same model at a cheaper rate, and there’s zero pressure because the interaction isn’t a physical one, so the heat is off. Now, it’s time to get what you really want.
When it’s negotiation time, ask about what extras may be included: floor mats, free maintenance, etc., also focus on the actual price of the car instead of strictly your monthly payment and check it against a payment calculator to make sure it lines up with your budget so that you’re not paying more.
Also, one of the best times to buy a car is during the last days of the month, because that’s when the end-of-month sales events happen to move inventory volume. Dealerships earn incentives to move volume, so they’ll be more receptive as they try to meet sales targets and would rather get you through the process quickly.
Step 5: Final Delivery and Inspection
Many online platforms as well as dealerships offer delivery to your door, which is why most people choose to buy their new car online to begin with. Digital signatures make dealing with paperwork seamless and simple, and you can peruse the contract details from the comfort of your home without worrying about holding up a dealership associate if you’re one who wants to know exactly what you’re signing.
Once your new car has arrived, it’s important to inspect the vehicle immediately. Check it inside and out for mileage, features, or any damage from its transport. If you’re not savvy about what to look out for, ask someone you know with vehicle knowledge to inspect it with you. If you do find something wrong, document it with photos before final acceptance, and there’s typically a 7-day return policy with most reputable dealers.
Step 6: Finalizing the Contract and Paperwork
You’ve just negotiated and settled on the right deal, now read the fine print on financing terms and check that there’s no hidden add-ons or dealership extras. In a nutshell it’s all those trimmings that sound great, but that aren’t really practical or useful to you.
For signing the contract and paperwork, depending on your state, you may be required to physically go to the dealership, whereas online you can sign via an encrypted e-signature. If you do have to sign your contract at a dealership, consider making an appointment beforehand and let the sales rep know you only have a certain window of time, and this time is not for hearing a last minute sales pitch.
Final Thoughts: You Really Can Land Your Dream Car Online
Buying a new car online has become the only way to go for a growing number of consumers, and with the time, money, and stress saved, it’s no wonder. But you still need a strategy since it’s a bit more complex than just buying new headphones online. Get solid financing, compare multiple offers over different sites, and don’t forget about negotiating with your salesperson, whether it’s digitally or face-to-face. The car buying landscape has changed, and now you can drive away in your dream car with much less hassle and more mental energy to think about getting those custom plates.
