Buying a car online
I’m still trying to help my daughter and son-in-law buy a new-to-them car. What I thought would be fun has resulted in me realizing car buying today is different. Last week I wrote on electric versus gas or a hybrid. This week I will talk about buying online.
I have never bought a car online. My children who buy everything online immediately began sending me links to cars they liked online. This is what I found out about online buying.
While including the added benefit of social distancing for higher-risk shoppers, a (mostly) virtual buying experience can often save you time, money and unwanted stress.
When it comes to buying cars online versus at a dealership, it’s not an all-or-nothing situation. Of course, there is the traditional method of visiting a dealership and competing your purchase there, from start to finish, as well as the opposite practice of completing the purchasing process from your office chair at home. There are, however, many variations that fall between those two extremes. You could shop dealerships first, and ultimately find a specific car online, or you could do your research and dealing online and ultimately purchase your car at a dealership. Here are steps you should follow no matter where you fall on the spectrum.
Choose a model, trim level and your must-have features. Be sure to check car safety ratings and car insurance rates for your chosen model. You can change your mind at any time, but knowing what you want will help you narrow your search.
Establish your budget before you inquire about pricing. Determine whether it makes sense to look for a new or used car, which can significantly affect pricing. When you land on a car budget you feel comfortable with, you can look for funding. Most experts recommend a ceiling of 25% of your monthly income for all cars in your household. Use online calculators to understand whether your cars’ monthly payments fit within your budget.
Whether this car purchase is your first or your 14th, it’s always important to brush up on auto loan basics before purchasing a new vehicle. Familiarize yourself with the process and secure your funding before you reach out online or to a dealership for pricing.
Test driving a vehicle in my mind is the most important step to purchasing a vehicle. Not all vehicles are right for all people. I happen to be large and need leg room. Rear and side mirrors don’t always adjust for me. Seats in some vehicles are too small for me and uncomfortable. Lower riding cars are not always easy to get into and out of. If you are purchasing a used vehicle, making sure everything is running smoothly is important. Test driving is an advantage dealers have over online buying.
If you have test driven the vehicle or have similar experience with the model you like, don’t get caught up in the moment. Go home, sit down with your computer and get down to brass tacks.
Email the online companies and dealerships. Ask for their best out-the-door price (inclusive of taxes and fees). Once you have your lowest price don’t be afraid to go back to the other bidders and see if they want to match or lower their price.
Purchasing a car is a significant investment – make sure you take the proper steps to ensure a secure transaction. Ask to see the title before you make the purchase and, if the car is used, make sure to ask for a car history report. Take time to review the purchasing and loan contracts.