Using the Internet to Purchase a Vehicle

I recently read Areal Tal's article, Factors to Consider When Purchasing a Car. Her article highlighted many valuable considerations when making the decision to purchase a car and what type of vehicle will suit your needs. This reminded me of our last car purchase, which was the best buying experience we have ever had! After the decision is made about what car to purchase, here are some tips for making the actual purchasing experience a good one for you, too.

The first thing to do is arrange for financing. Check out current loan rates at your credit union, bank and manufacturer financing options. Take the time to request and evaluate your personal credit report, usually available on-line or by making a phone call to request a copy be mailed to you. Knowing your own credit ratings and credit score prevent you from being surprised by something that may come up while seeking financing. It will also give you the opportunity to resolve any issues on your credit report prior to its being seen by the financial institution. Your goal may be to have a lower payment, to have a low interest rate, to have a short contract length, or most likely, some combination of all three. By securing your financing ahead of time, you eliminate the stressful and time-consuming process of application and approval when you decide on your particular vehicle at the auto dealership. Best of all, having your financing arranged ahead of time allows you to approach the purchase as a cash buyer, giving you an opportunity at a better deal and a shorter, smoother transaction at the auto dealership.

Once your financing is out of the way, you must decide from whom you will purchase your vehicle. Use the internet to visit the car manufacturer's website and determine which dealerships are within a reasonable distance for you. You may wish to include any dealerships within a 200-mile radius of your home. This may give you access to dealerships that are offering better sales, have larger inventories of your chosen model, or that are high volume dealers, meaning they may have substantially lower purchase prices. It may be worth a longer drive at the time of purchase if it could save you thousands of dollars. Most dealerships have a manufacturer rating. This rating is determined from customer satisfaction during the sale, and often for the service department. This is a major consideration when making such a large purchase. Narrow down your choices to the top two or three dealerships you would like to deal with.

Now that you have selected your dealership, contact the internet sales manager by e-mail. Be cordial, indicate the type of car you are interested in and inquire of its availability. There is no need to include more information at this point. Your initial e-mail contact responses will help you narrow down to which dealership you will use. You should expect a prompt response-the dealerships timely response and type of response will let you know who is really interested in your business. We contacted three dealerships and eliminated one right away because they did not respond promptly. The dealership we ended up using responded within a couple of hours. The eliminated one did respond for several days!

It is certainly okay to negotiate with more than one dealership, as long as you don't make any commitments to any one dealership before you make your final decision. Having another deal in the works can sometimes motivate a salesperson to make a better offer in order to secure your business. Remember, the salespeople are usually paid on commission and you are the one with the money for the sale. This is one time when you should expect to be treated quite well as they attempt to gain your business.

There is no need to reveal the fact that you have already secured financing until well into your negotiations. Remember, a cash sale is better for the dealership and this is a bargaining tool you can use to help yourself get a better deal on your vehicle.

If you are trading in a vehicle, this will come up at some point during your negotiations. You should already be familiar with the value of your car as listed in the NADA or Kelly Blue Book, as well as the amount of any balance you owe on it. You want to get a fair price for your vehicle. The most important thing here is to be very honest and frank about the condition of your trade-in. Remember, you are expecting them to deal fairly with you, so you should offer the dealership the same consideration. You may want to have digital pictures already downloaded to your computer so you can forward them, if requested. In most cases, the final deal will be contingent on final inspection of the trade-in vehicle.

After you and your salesman have agreed on a final deal, the rest is relatively smooth sailing. Arrange a convenient time to close your transaction. Make sure you have the title to your trade-in (or the loan information associated with it) as well as the check from your financial institution. When you arrive at the dealership, you will already have a business relationship with the salesperson, and likely be known by other people in the dealership who may have assisted your salesperson during the on-line negotiations. This makes for a much more relaxed and comfortable closing of your car purchase. There are even some dealerships who will bring your paperwork and new vehicle to your home-the ultimate in home and internet shopping!

Our experience when negotiating the purchase of our vehicle through the internet was so smooth and pleasant, we already know that this is the way we will purchase our next vehicle. With careful planning, a little advance legwork, and some research, you, too, will enjoy the ease of an internet vehicle purchase!