How to buy a car online

The world of car buying has changed significantly in recent years, thanks to the pandemic and advances in technology. Just a few years ago, buying a car online seemed like a fantasy, and no one expected to buy a car without spending hours at the dealership. Now you can buy a new or used car without leaving your bank, but there are still several steps and a lot of paperwork involved in the process. Here is an overview of how to buy a car online.

Determine how you want to buy a new car online

You have several options for buying a car these days, including online. Several major retailers offer no-contact distance car buying, and many can finance and arrange your paperwork without you ever having to go to a dealership. If that doesn’t appeal, many dealer groups can work with you remotely and possibly help with some of the process, such as shipping. While it is possible to buy a car from a private individual remotely, it is best to have a person you trust who can facilitate the purchase from the seller. There are some extra steps involved in buying a person that can be a hassle if you are not prepared for it.

Get your finances in order

Before you start shopping, determine your budget and make sure you can afford the car you want. It’s also a good idea to check your credit score ahead of time to identify problems or incorrect information that you weren’t aware of beforehand. Now is the time to set a maximum budget so you don’t get too focused on monthly payments or get sucked into conversations about expensive add-ons like extended warranties and protection plans.

Once you’ve calculated the budget and are comfortable with the numbers, you’ll need to apply for car financing. How and where you do this is up to you, but you have some great options that aren’t tied to the dealer you’re working with. Check with local credit unions and banks for rates and incentives, especially if you are already a member or customer. Some offer “blank check” financing that allows you to choose the vehicle and terms and present a certified bank check to pay. Others may have more favorable interest rates or terms than dealer financing. However, if you’re buying a new car and want the best deals, financing offers from car manufacturers can sometimes be a great way to save money on your loan.

Talk to the seller

Once you’ve determined your budget and finances, it’s time to strike up a conversation with the dealer or seller. The process with dealers generally involves an initial investigation followed by some questions and back and forth about the vehicle and its condition. Once you’re confident you’ve found the car you’re looking for, you can start talking about the price and any discounts or incentives that may be available for that model.

Buying a car online is convenient, but you still have to go through the same steps as when you shop in person. Depending on how advanced your dealer is, you may be able to handle the paperwork with DocuSign or another digital signing service. Still, in some cases you have to wait for documents to be emailed back and forth. Don’t draw on the dotted line though…

Inspection before purchase

This one is a biggie. If you’re buying a used car online, even from a major car dealership, it’s a good idea to get a pre-purchase inspection done by an independent shop. Used cars can have many problems, some of which are not visible without a detailed inspection. A reputable, experienced mechanic can save you thousands of repair costs with a simple inspection that generally costs less than $200, depending on the vehicle. You want to ask them to check for signs of abuse or damage, diagnose and determine if the vehicle has any active trouble codes, and make sure the condition is as you expect. This is an important step and we recommend never buying a used vehicle online without it.

It’s also worth asking the dealer for a CarFax to learn more about a particular car’s history and find potential red flags. If the dealer does not provide a CarFax or other similar history report, you may be able to afford one yourself.

How to buy a car online and have it delivered

Decide how you want to receive your new car. If you live close enough to the seller, a road trip to pick up your new ride is the cheapest and easiest way to receive delivery. If you need to travel longer distances, you can fly and drive home, or you can arrange shipping. Some dealers can make the process easier, but in many cases you’re on your own to contact a transportation company and work out the details. Open truck shipping is the least expensive solution, but you may want to look into covered or enclosed shipping if you just bought a brand new or classic car.

If you choose to ship the car, it is essential to be diligent in checking its condition when it arrives. You must ensure that the vehicle is exactly as you expect it to be and that no changes in condition have occurred during shipment. The vehicle will be dirty when it arrives, even if transported in a closed truck, as dust and other debris can easily get into the trailer.

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