How to Buy a Car Online

For many consumers looking to purchase a new car, the dealership is the only practical option. Fortunately, the expert car buyers at Consumer Reports—who anonymously purchase about 50 cars per year for CR’s testing—have a few strategies for spending as little time as possible at the dealership:

Do online research. Figure out which model, trim level, and features best suit your needs. Then search online to see which dealerships have vehicles with your preferred specifications. Depending on availability, you may need to expand your search to dealers in other states, or ask the local dealer you’re working with if they can get you a car located outside your area.

Communicate. Reaching out to a dealer doesn’t have to involve showing up in person. Get in touch by phone, email, or text—whatever works best for you and the dealer.

Schedule a test drive in advance. At some point, before you’re ready to buy, you’ll want to test-drive the car. Setting this up ahead of time can help minimize time spent at the dealership. Keep notes regarding what you like and don’t like about the vehicle. This can help in narrowing down your list of preferred models and identifying the trim that best suits you.

Negotiate remotely. Once you’ve decided on a car, negotiate a price from each dealership either over the phone or via email. Carefully review the price breakdown to make sure there are no extras you didn’t want or fees you don’t agree with rolled into the final price. Get the final, out-the-door price in writing before committing.

Stoke competition. If you’ve obtained a range of prices from different dealers, you can let the dealers know this and put them into competition with one another to get the best deal.

Find out about incentives. Make sure you ask about discounts for customer loyalty (owning the same brand of vehicle) or conquest (switching from a competing brand). CR’s car buyers find that incentives like these are easy ways to shave a few thousand dollars off the price, even on just-released vehicles.

Have a loan offer in hand. Find the best interest rate and loan terms by shopping online before you go to the dealership to sign on the dotted line. Getting a loan that fits your budget preapproved by your bank or credit union gives you a baseline for negotiations at the dealership, which may even have a more competitive loan offer. Be aware, though, that when it comes to financing, dealers tend to focus buyers on monthly payments that may, or may not fit within your budget. (Also, don’t forget to factor sales tax and insurance into your total budget.)

Resist pressure. When communicating with the dealer from home, be up front about how much time you will have when you arrive at the dealership, as well as your expectations regarding price. Be readyto walk away if the dealer insists on upselling or adding on extras you don’t want. If the dealer insists on signing you up for in-house financing that doesn’t beat your pre-approved offer, you may want to move on to a dealer that will work with you.

Because most states require in-person signatures for automotive sales contracts, a start-to-finish online transaction is rare. 

“Purchasing a car generally also includes securing financing and proof of insurance, whether a lease or a purchase, and the purchase contract has specific required elements. While some automakers and used-car sites have created ways to handle the paperwork largely online, it still takes time and can be cumbersome,” says Stephanie Brinley, associate director of research and analysis in AutoIntelligence at S&P Global Mobility. “Ordering and buying a car online is not as easy as ordering groceries for home delivery."

Mark Schirmer, director of public relations for Cox Automotive, an car market analysis company based in Atlanta, says that every state has its own regulations regarding car sales contracts, which complicates the process. Even an online used-car retailer like Carvana will require you to sign documents at some point during the car-buying process.

The takeaway: Be prepared to go to the dealership in person to complete the transaction.

When buying a car, Consumer Reports offers its members access to its Build & Buy Car Buying Service at no additional cost. 

Through this service, you’ll be able to:

• Tell us what you’re looking for and find out what people in your area paid for a similar car.
• See up-front price offers on specific vehicles before heading to the dealership.
• Browse a nationwide network of over 12,000 prescreened dealers from the comfort of your home.
• Receive competitive pricing on vehicles that match your preferences.
• Save $100 or more via additional membership discounts through participating dealers.
• Spot the Consumer Reports recommendation symbol to quickly alert you to vehicles we’ve already put through our rigorous tests.