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The information age made our lives more complex, but it also gave us the ability to buy a car online. It seems like everyone has a car dealership horror story. We've experienced tactics that seem aimed at separating us from our money, and not making sure we're buying a car that we really need. The Internet really has changed the way we can do business with car dealerships, and for the better.
Advantages of Buying a Car Online
When we think of car dealerships the word "haggle" comes to mind for many of us. It's actually a very good word to describe the process. The American Heritage Dictionary defines haggle as an argument that takes place in an attempt to come to terms. Unfortunately, most people don't enjoy haggling with someone they just met.
Buying a car online eliminates the sales pitches, the high-pressure sales tactics, and all the other ways car dealerships have devised to confuse consumers into buying an overpriced car. You can now make online purchases on your own terms, often taking place in the comfort of your home. You can walk away from the computer without a salesperson chasing after you; and that is a big advantage.
Online Car Dealerships
So where exactly do these online cars come from? Ironically, they come from the same exact dealerships that we all dread visiting. That's because car dealerships understand what the online shopper needs. Most online shoppers are looking for either convenience, or they are comparison shopping. Car dealerships know that to expand their market reach, they need to offer consumers the convenience of shopping for a car online.
This is not to say that every car dealership will sell cars over the web. But the growing popularity of this sales channel means the number of participating dealerships grows daily. If you're wondering if that local Toyota or Ford dealership sells cars online, the answer is pretty simple: They might or they might not. In the end, it really doesn't matter.
How to Buy a Car Online
If you're thinking about buying a car online, then you need to be sensitive to a couple of "rules." One of the reasons this is such an attractive sales channel is the price of new cars offered online are hard to beat. That's because when you buy a car over the Internet, you're not engaging a salesperson that is paid a sales commission.
When you visit a dealership in-person, you're negotiating with someone that is directly impacted by the deal you strike. The better deal you get on a new car, the lower the commission they receive from the sale. This is one of the reasons the relationship is so adversarial. This also brings us to one of the first rules of buying a car online:
Try to avoid working with a sales associate at a dealership.
For example, let's assume that you spend some time researching a new car, and figuring out the best car value for your situation. After you're done with your research, you probably want to test drive the car, look at colors, touch, and feel the car you're thinking about buying.
If you're contemplating an online purchase, then you should try to avoid working too closely with a salesperson. Just a simple - "I'd like to test drive this car, thanks for your help." This avoids a situation where you purchase the car online, then go back to the same dealership you've already visited and pick up the car.
If you have a "relationship" with the salesperson, they might try to claim they're owed a commission on the car's sale. Don't negotiate with anyone, just kick the tires and you'll be fine.
Finding a Car Online
Our assumption is that you've done all your research, and understand what kind of car will serve you well in the coming years. The next part of the process is fairly simple. There are many online car websites, and they all work the same way. Here are a couple of the larger sites:
All you need to do is select a make and model, then choose the options, if any, that you want along with your color preference. When you're done, the website will give you the price of the car. It is that simple. The website will take some of your contact information, tell you when to expect a call, provide you with the dealership that will sell you the car, and give you the name of the person that will contact you.
Online Cars and Warranties
Many people think that if they purchase a car online, then they are obligated to bring the car back to that same dealership for service under the new car warranty. That's complete nonsense. The car is under warranty by the manufacturer, not the dealership.
The dealer is an agent working on behalf of the manufacturer. In this capacity, they're getting paid by the manufacturer for making in-warranty repairs on defects. Think about it this way. If you purchased a car in California, then moved to New Jersey, they wouldn't make you drive back to California for repairs covered by the warranty.
Finally, if you happen to tell a car salesman or a friend that you're thinking about buying a car online, then be prepared to hear the old "You'll never get the car at that price - you'll be waiting forever." That is simply not true.
Conducting online car sales are an extremely efficient process, and the websites and dealerships engaged in the sale want you to get your car. They wouldn't be in business very long if they weren't able to keep their promises or deliver cars on-time.
About the Author - Buying a Car Online
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