Milwaukee, Wis. – What comes to mind when you think about purchasing a car? For many, it’s driving from dealer to dealer in search of the right vehicle. Then, when you find the car you want, you must spend hours in an office haggling for the best price while trying to understand the financing and payment terms. See BBB’s tips on buying a new and used car.
Given the stress often involved in buying a car in person, many dealers are figuring out ways to simplify the process by moving it online.
Why buy a car online?
One main perk of purchasing a car online is that there is less emotion involved. It’s easier to stay detached when chatting with someone remotely, and this could help you make a clear-headed purchase. Also, any discussion you have about pricing or financing generally comes through email, which means you have everything in writing and can thoroughly review the terms without a salesperson nearby. You can make this significant spending decision on your own time, even after regular business hours.
How to buy a car online
If you are considering buying a car online, BBB recommends the following tips to help you avoid getting scammed and get the best deal possible:
Set a budget. Before you set out to find the perfect car, it is crucial to establish a budget. You will also want to factor in the monthly expenses of owning a vehicle, including insurance payments, fuel, parking, and routine maintenance and repairs. A clearly defined budget will make choosing a car, negotiating with a dealer, and getting a loan much more straightforward.
Do thorough research. Assess your personal needs first. Do you need a large vehicle for a big family? Do you spend much time on the road and want good fuel economy? The answers to these questions will help you narrow down the makes and models as you search for a vehicle that fits your needs. Once you have narrowed your search, compare models you are interested in, keeping a close eye on safety ratings, owner reviews, and warranties. Visit manufacturer websites to see detailed images of each car and research MPG statistics, interior options, cargo space, towing capacity, and more. The more time you spend on these initial steps, the more comfortable you will feel when purchasing.
Shop for a deal. While you are still doing research, don’t forget to look for deals! These may include cash-back deals, rebates, low-interest financing options, or incentives for recent graduates, military veterans, rideshare drivers like Uber and Lyft, or first responders. In addition, many dealers are willing to make price cuts on previous year models or any model that did not sell as well as expected. Purchasing one of these surplus vehicles can mean extra incentives from the dealer.
Prequalify for a loan. Prequalifying for a loan gives you a few advantages when approaching a dealer to make a purchase. First, you can set a reasonable price range that fits your budget. Second, when approaching a dealer with a pre-approved loan, you give them a price limit they must meet to make a sale, saving you money. Of course, most car dealers offer their in-house financing for consumers, but you may get lower interest rates on loans from your bank or credit union, so it’s important to compare.
Search dealers for inventory. Now that you have a specific make and model in mind and a pre-approved loan, you’re ready to start shopping. You can search for a specific car or browse a dealer’s inventory online to see what they have on hand. You can include out-of-town dealers and online-only dealers as well. Check to see if they charge high delivery fees to your area. If so, starting with a local search and expanding it might be a good idea if you don’t find what you want.
Take advantage of online showrooms to get a close look at the vehicle. Many online dealers feature dozens of photos from various angles so that you can inspect each car closely from the comfort of your home. Compare the offerings of multiple dealers and BBB Pro tip: Be sure that you check each dealer’s business ratings, reviews, and complaint history on BBB.org before you reach out to them. And Look for the BBB Seal: It’s the Sign of a Better Business!
Speak with internet sales managers. When you find a trustworthy dealer (such as a BBB Accredited car dealer) with a car you want, it is time to contact the sales manager. During your initial conversations, focus on what car you are interested in, whether they have it or can get it, and how much they will sell it for. Give the sales manager the general price range that fits your budget. If things go smoothly and you feel good about purchasing with this dealer, you can arrange a test drive with the sales manager or move forward toward making the purchase. If you are considering purchasing a certified pre-owned vehicle, now is the time to request a copy of the vehicle history report.
Test drive the vehicle. You should always take a test drive before you sign the final paperwork. There is no substitute for seeing a car in person, looking under the hood, sitting in the driver’s seat, and ensuring the engine runs smoothly. To do so, you may need to travel to the dealer’s place of business. Some dealers offer the ability to test drive upon delivery, and if anything isn’t as expected, you may cancel the sale. Take the route that works best for you, but never skip the test drive.
Complete the sale at the dealer or upon delivery. If everything checks out, decide how you will complete the sale. It is still usually necessary to sign the final paperwork in person. If you would rather avoid visiting the dealership, ask about delivery. Some dealers will drop off the car at your home or business and allow you to sign upon delivery.
Avoid online car sales scams
There are many pros to buying a car online, but caution is also needed.
Anytime you shop online, and especially when making an expensive purchase like a car, you should keep the following tips in mind:
- Watch out for too-good-to-be-true deals. They are most likely a scam. Scammers often steal consumers’ personal information and money by offering them high-value goods at extremely discounted prices.
- Be cautious about wiring funds or completing bank-to-bank transactions. Scammers love this kind of transaction because you cannot get your money back once it is completed. Instead, make legitimate purchases by check or credit card.
- Contact the seller by phone. During your negotiations, speak with the sales manager on the phone. If they are unusually vague about specific details of the sale or cannot confirm their location or the vehicle’s location, it’s most likely a scam.
- See the car first. Never buy a car without making an in-person inspection and taking a test drive first.
- Don’t give in to pressure. Scammers often pressure you to give up your personal information or make a down payment before you have time to consider the purchase. Take your time and think a deal over before agreeing to anything. If you get a bad feeling, listen to your gut.
- Don’t trust a seller or buyer who says the transaction is “guaranteed” by eBay, PayPal, Craigslist, or another online marketplace. These sites explicitly explain they cannot guarantee that people using their services are legitimate. Anyone who says otherwise is lying.
For more information
To learn more, see the BBB tips on buying a new car and buying a used car. You can also look up car dealerships at BBB.org to check their business rating and read customer reviews.
Find new car dealers near you and used car dealers near you.
Read BBB’s Standards for Trust.
View the online version
For more information or further inquiries, contact the Wisconsin BBB at www.bbb.org/wisconsin, 414-847-6000 or 1-800-273-1002. Consumers also can find more information about how to protect themselves from scams by following the Wisconsin BBB on Facebook, Twitter, Instagram and YouTube.
ABOUT BBB: The Better Business Bureau has empowered people to find businesses, brands, and charities they can trust for over 110 years. In 2023, people turned to BBB more than 218 million times for BBB Business Profiles on 5.3 million businesses, and 80,000 times for BBB charity reports on about 12,000 charities, for free at BBB.org. The International Association of Better Business Bureaus is the umbrella organization for the local, independent BBBs in the United States and Canada.
