The Internet has had a significant impact of the way people buy cars today. For the car buying public it is a good thing because there are practically unlimited sources of information, but for the car dealer it is thought of as a bad thing for the same reason. The dealer doesn’t want their customers to have that much information because it cuts into their profits. Internet new car buying is an area that the dealers have come to realize that they change their process or lose potential business. So they have changed the tactics for the Internet automobile buyer.
Internet New Car Buying or Pricing
When you buy an automobile at the dealership the process is completed by signing all the necessary paperwork and then driving your new car home. So let me clarify what is Internet new car buying and what is Internet car shopping or pricing. Internet car buying would be completing the transaction on your computer and then you would receive the paperwork by mail, FedEx courier or some other method. The paperwork would be signed by you and witnessed by a dealer agent or a notary and then the car would be delivered to your home.
You would be charged the freight charge for transporting the car which could be anywhere from a couple hundred dollars to a $1,000 or more depending upon your location. This is not a common practice, but it does happen and it is true Internet new car buying. Dealers don’t like this method for selling cars because it does not give them a chance to sell additional products or services along with an increased chance for damage to the vehicle and fraud, in fact most dealers refuse to do business this way.
The most common process when people talk about Internet new car buying is actually shopping or pricing. The consumer would communicate with the dealers Internet sales department and negotiate a price and terms of the car sale via email. That way both parties have documentation that confirms pricing, car dealer fees, sales tax and vehicle selection from the dealer’s inventory or commonly known as an “Out the Door Price”. Then the consumer goes to the dealership and confirms choice of vehicle and documented pricing along with any other options or add-ons. The car buyer will sign the paperwork and drive their new car home. Sounds quick and easy, right? Think again.
The Dealer’s Version of Internet New Car Buying
The dealership wants the customer to test drive the car which is a good idea even though it is a new car there can still be issues. They want the customer to fall in love with the car and soften them up so they can sell options and accessories for their new car. Then the customer will go into the business office to complete the paperwork and endure the Finance manager trying to sell them everything under the sun including extended warranties, service plans, insurance and anything else you can think of to make more profit.
If you are dealing with a reputable dealer all will go well and you won’t be subjected to any car dealer tricks. The price, terms and conditions will be honored and all you have to do is listen to the Finance Manager’s pitch and sign your paperwork. The problem is that there are many car dealers that will try to pull some common car dealer scams. The things to watch for are adding an additional charge for a dealer prep fee, adding a destination charge or some other car buying fee that is not part of the Internet new car buying agreement made via email. You will also come across dealers that have accessories installed on the car that you wanted to buy and they don’t tell you until you are at the dealership. They will tell you that they cannot remove the extra options and you will be charged for them (very common practice for Internet car buying.
Cautions for Internet New Car Buying
Whether you do your car shopping on line, at the dealership or you want to buy your next vehicle via Internet new car buying the cautions remains the same. Use your logic and common sense rather than your emotions. Car dealers count on and train their salesmen to work your emotional side because that is the best way to make more money for the dealership. Read everything thoroughly and completely before you sign anything and thoroughly inspect your new vehicle during your new car spot delivery because there are no returns. You can also read the steps to buy a car for a step by step guide for how to buy a new car.