I Bought A Car Online--Here’s How It Went
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I’ve only ever had three cars: one gifted, one bought used from a lot, and one new, that I bought online.
It’s safe to say that my car buying experience has been a little bit different each time. The third and most time spent car shopping could only be considered a charm if you like wearing jewelry from Pandora’s Box.
In the winter of 2021-2022, when I started the car buying process once again, I had come to find out that the market had changed drastically. It was no longer a market that financially benefited buyers; it was a “seller’s market.” This meant that even the crummiest car was selling for an astronomical rate. Used cars with over 100,000 miles on them and dated safety features would go for $15,000…minimum. Not only that, but I was still very fearful of COVID and wanted to keep my distance. That meant I would be shopping for one of the most important financial investments one can make online.
How Do I Know If I Am Getting a Good Deal On a Car?
The short answer is: find the blue book value of the car using Kelley Blue Book.
The long answer is: I learned that the hard way.
I tried for weeks to find prices lower than the market rate. To do so, I exclusively searched for used cars. I mean, why wouldn’t you get a good deal on a used car? That was my naivety talking. I looked into it all—the national used car sellers, the small local car lots, and everything in between. Vroom, Carmax, and Carvana all seemed similar. Their inventories were typically more expansive than the local car lots, but their pricing still favored sellers.
I had been using filters through these sites to prioritize what I wanted in a car. I initially focused on low mileage, a rearview camera, and Bluetooth. I figured these simple requests would not be expensive. I had never been so wrong. A good used car with these features would easily sell for $30,000-$40,000. I did not have that much to spend.
My next step was to focus solely on pricing. I thought that maybe only filtering for a max budget of $20,000 would help me find “the one.” Of the big names, Carvana seemed to have the most quality options for that price range during my shopping period. I wrote down the 2-3 cars that I was most interested in learning more about and made an appointment to visit the closest Carvana lot. This felt like a good compromise with myself—between online shopping and still doing my in-person due diligence.
My mom and I enjoyed our visit to Carvana. The premises were pristine. The salesmen were nice. The inventory had hundreds of quality options. I even got to drive my top pick around town for 20 minutes. I was thoroughly impressed and am certain that a full car buying process with them would’ve been easy and smooth. But, unfortunately for the salesman, I still did not feel comfortable with paying those market rates for used cars.
I left dejected, but with a plan. During this car shopping process, I had been alternating between using my mom’s car and Rent-a-Car, covered by my insurance. The rental that I had randomly chosen was a sleek black and white 2021 Hyundai Venue. I had never driven a car that nice and assumed that this car, along with all other new cars, was way too far outside of my budget. Yet, I had been searching for a used car for weeks at this point. I was getting nervous that I would lose my job sooner than later because I couldn’t be on-site.
That’s when I decided to look into new cars with my mom and the internet’s suggestion of comparing car values by using Kelley Blue Book. If there is one car shopping site I now swear to buy from, it’s directly from Kelley Blue Book. I decided to search for the 2022 Hyundai Venue on KBB.com. Imagine my surprise when I realized that that car model was selling for $20,000-$24,000. At just $2,000-$4,000 more than the most reasonable used car I had seen, I could buy a brand-new vehicle. So, that’s what I did. I was moving to a new state and needed something reliable.
Where Do I Start When Buying a Car Online?
No matter the website I was searching on, I preferenced cars within a reasonable driving distance because shipping a car can cost an obscene amount of money. If you’re planning to buy a car that will need to be shipped, make sure to include that in your overall car budget.
Find a Dealer Near You
I looked to see who was within an 8-10 hour driving radius and had a green version of that 2022 Hyundai. Then, I compared the prices. The car lot closest to me had the highest price. Still, I called them first because they were only an hour away, which meant that I’d be able to see the car before buying and save on shipping. I asked if they could price match—but of course, I didn’t get a clear answer. Since I didn’t want to haggle, I called a car lot in Ohio that had the best price, but they said that they weren’t allowed to sell across states at the moment. The next car lot option was a full 8 hours away (with no traffic) in one of the southernmost parts of Georgia.
I spoke with them over the phone several times over the next few weeks. Honestly, I was a pretty easy sale; at this point I was tired of looking and was dead set on getting that Venue. That meant that I didn’t ask a major clarifying question: how do you ship cars?
Always Ask Questions
They had already told me I would need to pay $600 or more for shipping. Fine. I wanted the car. I had assumed that this meant my new car would be shipped to Nashville, Tennessee, from Brunswick, Georgia, via freight delivery. I signed the Docusign paperwork and waited for the calls or texts to update me on its delivery status. At around 6pm one cold evening, I got a text saying:
“I just spoke to your drivers. They hit something on the way to your house and that resulted in a couple scratches on your car. We are trying to get you a new car. Does it have to be green?”
After freaking out and calling everyone I knew, I realized that I never actually asked how they delivered cars across state lines. Turns out, they had two men that would sit in and drive your brand new car (that had never been driven!) all the way to you, putting miles on your car that were not accounted for in the price. I was in my early twenties and had recently graduated college, but this was something serious I still defaulted to my mom for. She spoke with the dealership and they had arranged for a new version of that same model to be delivered via a flatbed. My car arrived with less than 50 miles on it and no scratches.
How Do I Get the Paperwork in Order for My New Car Purchase?
I remember the paperwork during the buying process to be simple. They ran my credit score, I virtually signed multiple documents, and that was mostly it. It was the aftermath paperwork that was nerve-wracking. My car arrived without scratches…and without a license plate and registration, not even a temporary one.
The most important documents—the ones that you need in order to drive and update your insurance with—had to be mailed separately to me. There was an entire process behind the scenes that I still do not fully understand. What I do know is that the dealership I purchased the car from had to communicate with the other state’s DMV and registration office. For whatever reason, that process took three months. I had to request a new temporary license every four weeks until my permanent one arrived so that I’d be driving legally.
What Should I Know When Buying a Car Online?
You can save money
Buying a car online can be a great way to get a good deal on your new set of wheels. You can avoid haggling with dealers and save yourself time by browsing through online listings and narrowing down your choices before you go to test drive any cars. (I’d recommend Kelley Blue Book for price comparisons on your own.) Some dealerships may even price match the blue book value, depending on the market (and how nice and willing to work with you they are). I found used car price comparisons a little trickier, but there’s wiggle room if you know the car’s true value and who sells in the most honorable way.
But, you don’t really save time
This may have been just me, but between the numerous phone calls, emails, and shipping time, I did not feel like buying a car online was any quicker than buying in-person. On the contrary, buying a car off a local car lot probably saves quite a bit of time.
Inspect the vehicle remotely
Be sure to inspect the car thoroughly before you buy it and have it delivered. It is well within your right to see pictures and videos of the car’s true condition before agreeing to the sale. If you’re buying a used car, request the car’s history.
Discuss Shipping
Do not assume how they will ship a car (like I did). Clarify the dealership’s shipping process and request what you are most comfortable with. Also, remember that car shipping is not cheap. If you’re on a tight budget, refine your search to a drivable (or Uber and Lyft-able) radius.
Discuss Plates and Registration:
These items are legally required. Be sure to discuss the average time frame for their arrival, and never hesitate from requesting that a temporary license plate be overnighted in the meantime.
Overall, my online car buying experience was positive; I would without a doubt do it again when the time comes. This time, however, I (and you) will know what questions to ask and what things to avoid.