Shopping for a Car Online
by John Nardini
The next time you shop for a new family car, consider using the Internet. It’s a great tool to get a good deal, relatively hassle-free.
By going online to research vehicles and negotiate with dealerships, you generally can expect to pay 10 percent to 20 percent less than at a car lot, says Philip Reed, consumer advice editor for the automotive website www.edmunds.com. “The savings in time and aggravation are even greater than that,” Reed adds.
Here are some tips:
Do your research. Websites such as Edmunds.com and CarsDirect.com offer detailed information on vehicles, as well as photos of all makes and models available. Look for highly rated vehicles that meet your needs and budget.
At Edmunds.com, you can type in your preferred car and options and get an estimate of the dealer’s invoice price (base cost) as well as the “True Market Value,” which is the average amount others in your area paid for the same car. This information is vital in negotiating price.
Identify local dealers. Search the Web for dealerships within a 100-mile radius of your home. If you know specific dealership names, check to see if they have a website. Or, search by typing the car model (“Chevrolet,” for example), the name of your city and the word dealership into an Internet search engine. This should give you a choice of several area dealership websites.
“Virtually every dealership has some sort of Internet presence. They have a website or you can contact them through e-mail,” Reed says. Many large auto dealers have Internet sales departments that focus exclusively on online sales.
Visit local dealerships to test-drive your top few contenders.
Contact all dealerships. Once you’ve selected the vehicle you want to purchase, you can handle all negotiations via e-mail. Contact the dealerships with a standard message that provides details about the car you want. Ask about the price and tell them to respond by e-mail.
“The biggest problem in buying a car in the past has been you can’t just walk into a dealership and say ‘What will that cost me?’ because they won’t give you a straight answer,” Reed explains. “But through the Internet department, they will, or should. That’s the whole concept of it.”
Haggle. As the sellers reply to your e-mail, ask the higher-priced dealers if they can offer a better price. Let them know in a subtle way that their price is not the lowest and that they are in danger of losing your business. Often, they will lower their prices. Aim for a price below Edmunds’ True Market Value.
As the bidding starts to slow, politely let the sellers know that you are aware of their costs. Try offering them a price that allows them to make $200 profit. Some sellers will accept this deal, especially if it’s at the end of the month and they need to hit a sales quota. If the car you have chosen is in high demand, however, you may have to pay an amount that’s closer to the sticker price. Avoid letting the dealer add expensive extras such as advertising fees or special charges.
Make the deal. Typically, you’ll want to finalize the deal in person. After concluding negotiations, bring your printed e-mails to closing to be sure you get the agreed-upon price. Buy your car!
first appeared: 3/4/2010
Upload Your Own Stories, Photos and Videos
Every week, American Profile magazine brings you stories that celebrate the people and places that make America great.
Now we want to hear your stories and see your photos, videos and even audio.
Start Uploading Now!
Related Stories
If you enjoyed reading this story,
Shopping for a Car Online, then you might enjoy these other stories.
Discuss this Article
Here are some of the current comments about this article.
To read more or post your own comments,
visit our message boards.
3/5/10 7:08 PM
Edmunds and CarDirect is great. Another website you can check out is Carsala.com. They help buyers pay 20%-30% off the KBB value, and they will go through the process of finding the right car and guarantee the lowest price for you.
3/6/10 11:35 AM
Reading the article
Shopping for a Car Online made my blood boil. Someone who clearly knows as little about buying a car online as John Nardini shouldn't be writing an article for an otherwise quality publication. It's apparent he was short on ideas so decided to visit
www.edmunds.com to become an expert on buying a car. Yes. I am a car dealer. I'm a good person who goes to work everyday to earn a living and put food on my table. Not unlike everyone else who is reading this. Who decided I shouldn't make a reasonable profit for the goods and services I provide? Mr. Nardini suggests
the next time you shop for a family car, consider using the Internet. I've got news for you. Only a very small percentage of customers (less than 10%) DO NOT use the Internet before purchasing a car. The entire basis of his article is 10 years out-dated. Dealerships have had to change the way they do business in order to succeed in a transparent market. We realize and embrace the fact that customers come into our showrooms armed with information from the Internet. It actually makes our jobs easier. When I vacation I would love to stay at the Four Seasons for the same price as the Holiday Inn. We all know it doesn't work that way. You get what you pay for. When it comes to cars do you want to buy yours from the Holiday Inn or from the Four Seasons? Your choice. Expect to get what you pay for. My dealership offers a clean updated facility with well paid happy employees whose job #1 is customer satisfaction. Advertising is a part of doing business for any business. It's no different here. It's also expensive. Last year we averaged 50 sales a month and we spent $360,000 in advertising. That makes our average advertising cost per sale $600. That $600 per unit does not include commission for the salesperson, salary and hourly wages for other help and profit for the dealership. With the author's math my store wouldn't be open for long making only $200 profit per car. Do you expect the dealership you buy your car from to stand behind their product when something is not covered under warranty? Clean comfortable waiting room and showroom? Professional Sales Associates? Clean late model loaner cars when you are in for service? Support the local little league team? Donations to charity and the community? These are all items that cost money and $200 profit per car is not going to cut it. It takes millions to run good car dealership. We expect a fair return on our investment. Does anyone really question the markup on jewelry, electronics or dining out? Can you walk into a restaurant and ask what their cost is on that piece of steak and offer them less? You wouldn't get served. Dealerships are no different. We need to make a fair profit to survive. I don't mind paying for the Four Seasons if I get the expected level of treatment in return. You get what you pay for and the best deal isn't always the lowest price.
Post your comments on this article
