Buying a Car Online vs. Showing up at a Dealership

The Internet has been a game changer in the automobile industry, giving potential customers many more options than were available to them before. Today, often an entire transaction can take place without the two parties ever having met face to face. Using the Internet to purchase a vehicle comes with a very unique set of both challenges and advantages.

The dealerships online sales department functions very differently than the car salesman in the display room. The online sales representative earns his pay in a few different ways. He may get paid a bit, usually around two or three hundred dollars, just for getting you to come in and pay the dealership a visit. His main goal, however, is to sell a lot of cars. Unlike the regular floor salesman who in most cases gets paid a commission depending on how many cars he sales, the internet sales person is much more concerned with the volume of cars sold every month.

Online - Advantages

He most likely has a target amount of cars that he needs to sell every month to be able to receive a certain pay bonus. The more cars he sells, the larger his bonus will be. The internet sales person is usually far more consistent about the prices he offers and a lot less interested in screwing over every single client. When dealing with him from the safety of your home, he is much more likely to be quicker about giving you a decent price for the car you want than if you tried to bargain directly with the car salesman on the floor of the dealership. Doing your negotiating online can save you not only a huge headache but also plenty of valuable time.

Another benefit of buying a car online is the ease with which you can shop around for better deals from the competition. If you aren't happy with the price one dealership is giving you, you can easily send a quick note to another dealership across town and see if they'll beat their competition's offer. Once they funnel you their superior deal, you can then go back to the first dealer and see if they will beat that one. Starting a dealership price war to compete for your valuable business has never been easier. And you can do all of this from the comfort of your own desk in a minimal amount of time.

Once you've gotten the best price possible for the car you want, you can then make an appointment to meet the online sales representative with whom you've been communicating. Make sure to print out a copy of your price negotiation emails to make sure the price you've settled on is honored.

At the appointment you can finally get a firsthand look at your next car, poke around under the hood, and even take it for a test drive if you like. Because you've already gone through all the nasty negotiations online, you will probably only have to spend about half an hour in the dealership inspecting the vehicle and signing the necessary paperwork.

The Drawbacks of Buying a Car Online

Despite the numerous advantages to using the Internet to buy your next car, no giant leap forward comes without a few disadvantages. If you are the kind of person that likes to do their negotiating in person, buying online will probably not be for you.

Buying online also makes performing a thorough inspection of the car, inside and out, harder to do from the get go, although you can easily do this when you finally do show up at the dealership. If you prefer to take the car out for a test drive, inspect the engine, and kick the tires before you even start talking about the price, buying a car online may not be for you.

Check the Dealer's Rep

The absence of a face to face meeting until late in the game can also pose a bit of problem for some buyers. Sometimes meeting face to face is a crucial part of determining not only the worth of the vehicle but the trustworthiness of the seller. It is much easier for a dealer to be dishonest with you when all your communication is done via email.

Because of this, when buying a car online, it's important to only deal with trusted sellers. Before handing over any money or even starting any serious negotiations, make sure any dealer you deal with online has an excellent Better Business Bureau rating and is legally registered with the Department of Motor Vehicles in your state.

As the economy continues to struggle and gas prices remain high, buying cars online has surfaced as time- and hassle-saving viable alternative to shopping around at car dealerships in person. The online vehicle sales industry is gaining momentum, and its benefits continue to far outweigh its drawbacks.