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If you’re looking to skip the dealership for your next car purchase, buying a car online is probably on your mind.
Online shopping could simplify your car-buying process. While shopping at a dealership is still an option, moving your search online could save you the hassle of having to drive from one dealership to another and negotiating with a salesperson. Online car shopping has become far more mainstream during the pandemic, and it’s likely here to stay.
If you’re looking to buy your next car online, here’s what you need to know to make sure you’re getting the best deal possible.
1. Arrange your financing in advance
Shopping for a car generally means shopping for an auto loan. If that’s the case for you, consider looking for your financing before shopping. “Understanding what you qualify for is a really important part of the process, and shouldn’t be kicked to the end,” Jon Salzberg, director at Credit Karma Auto, told Insider.
Dealerships can add a markup to financing interest rates, which earns them money and increases the amount it will cost you to borrow. Arranging your own financing can help you avoid that markup, and help you make sure you’re getting the best deal possible.
Get pre-approvals from a few different lenders or banks — banks you already work with or local
credit unions
are a good place to start. Look past the monthly payment, and compare interest rates, down payments, the length of the loan, and any fees.
2. Do the same research you would when shopping in person
Salzberg recommends that anyone shopping for a car online treat it just as they would in person. “Even if you’re not traveling from dealership to dealership and negotiating with dealers directly, you can travel from website to website,” he said.
Compare what’s available from each site, and what would be available locally at a dealership, too. Online, it will also be important to compare the terms and policies of the sites you’re considering — some allow for a return policy or a trial period, and you’ll want to consider delivery or pickup options and cost. Looking at an online dealership’s reputation and reviews should also be an important part of the process.
If you want to test drive the car you’re considering, it’s still possible, even when shopping online. For that, Salzberg recommends considering a trip to a local dealership, even if the price is better online. “Pick out a car online, and then go to a local dealer and take a test drive of that vehicle,” he told Insider. Then, you’ll have a better idea of the car you’re considering online.
3. Don’t rule out used cars, even online
Used cars online are still generally a good option, and you might find a larger variety.
There are plenty of online dealerships that offer thorough photos of the car itself, and outline the highlights and lowlights of the car. Many offer detailed photos of the interior, too. Make sure you get a good idea of the car from the photos online. The mileage of the car is also an important aspect — many online dealerships take photos of the odometer to confirm.
Cars between two and three years old are often previously leased, and could be a good deal. Leases often require that owners stay under a mileage limit, and keep up with regular maintenance like oil changes and tire rotations. These contracts also require that owners minimize both interior and exterior damage. Oftentimes, these off-lease cars are a good option for anyone looking for a newer used car.
Cars maintained as part of a rental fleet could also be good options. “If you are shopping for a used car, car rental companies can be great opportunities as well, to get newer models with slightly higher mileage at a pretty good price,” Salzberg said.
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Source: https://www.businessinsider.com/personal-finance/how-to-buy-a-car-online
