Where to Buy Cars Online

What are the best web sites to buy used cars online? How to spot scams and avoid problems.

The Internet has changed the way we buy cars. We can research our cars on the web, check prices, bid on online car auctions, and arrange purchases without ever seeing the seller. Online car sites make it easy to compare prices and find exactly the car we are looking for. If we need to find low-cost cars, many of the web sites allow us to search and filter the results by price, as well as make, model, year, and other factors.

New Car Web Sites
Although this article is primarily about how and where to buy used cars online, buying new cars is just as easy. Web sites such as Edmunds, Yahoo! Autos, and InvoiceDealers allow you to request a free price quote for any new make and model. Since state laws in the U.S. require that all new-car purchases be made through licensed dealers, your purchase would actually take place at a local dealer's office.

However, the Internet makes it easy to get price quotes from multiple dealers who are competing for your business. In this way, you can get low prices online without leaving your computer. The price quotes you receive will usually include any current rebates and incentives offered by the car manufacturer. For this reason, it is often possible to get a brand new car for not much more than the cost of a relatively new used car of the same make and model.

Even if you know you want to buy a used car, you should always check and compare new-car prices too.

Used Car Web Sites
There are a number of ways to buy a used car online. Some web sites, such as eBay, Craigslist, and USFreeAds primarily list cars being sold by individuals, although some dealers also use these sites.

Also check your local newspapers' online classified ads. Find your newspaper's web site and locate the "cars for sale" ads.

Other sites such as UsedCars.com have discounted prices being offered by dealers. Based on your ZIP code, you can find dealers near you and look at cars in their inventory. If you find a car you like, you can arrange the purchase online. However, you should visit the dealer, inspect and drive the car before you sign papers.

Other web sites such as Cars.com, Vehix.com, and Autotrader.com also list mostly dealer-owned cars for sale. You can search for cars in or near your ZIP code. Remember that listed prices are "asking" prices that can usually be negotiated.

Which Car Web Sites are Best?
Some people ask, "Which web site is best for buying cars?" or "Which web site has the best car prices?"

There is no good answer to that question. Prices are set by sellers or dealers and are generally considered to be "asking" prices. This means the prices you see in a listing are higher than actual selling prices. Therefore no web site has "better" prices than any other site. Online car prices are generally the same as you would see in local newspaper "car for sale" classified ads or supermarket "autotrader" magazine ads.

Web sites such as eBay allow you to search for cars based on price, make, model, and year. eBay also has buyer protection plans that help protect buyers from fraud. However, buying a car long-distance is risky, even with protection plans.

Although many people have had good luck buying cars online, it's a risk if you can't see the car, can't drive it, can't inspect it, and can't talk directly with the seller. It's best to locate cars in your area that you can actually go see and drive. In most cases, sales are considered "as-is" sales which means that the car can't be returned for any reason.

How to Avoid Problems
Buying a used car online at long-distance is much more risky that buying locally where you can easily examine and drive the car. Often, you only have a picture and brief description to go on. Even if you contact the seller, you can't be assured he gives you accurate information about the car's condition.

Of course, if at all possible, go see the car and talk personally with the seller. This is the best way to avoid problems.

When buying any used car, online or not, always research prices. Used car prices can be checked for free on web sites such as KBB.com, Edmunds.com, and NADAguides.com.

If you must buy a car long-distance, it's best to arrange an inspection of the vehicle by a local mechanic or inspection service (check telephone yellow pages). Also get a Carfax vehicle history report. Arrange payment through an escrow service that you choose, not one recommended by the seller, which could be bogus. Then arrange shipping yourself.

Used Car Scam
Beware of online car scams that are all-too-common on used car web sites such as Craigslist, Autotrader, and others.

The scammer will list a car with a picture, appealing description, and an attractively low price.

There is no way to determine if it is scam until you make email contact with the seller. The seller will explain the low price (divorce, called up in military, lost job, etc.) and will explain that he/she will ship the car to you at no extra cost, that you should send money to some third-party escrow service or "eBay protection account", and that you have 5 days to decide to keep the car or ship it back at the seller's expense.

Of course, there is no car and your money goes directly to the scammer, not some safe-sounding intermediary account. By the time you realize your money is gone and that there is no car, it's too late. The scammer has disappeared and out of range of law enforcement.

Summary
There are many good web sites for buying used cars online but online long-distance car buying requires extra caution to avoid problems and scams. Many people have made successful purchases this way, but others have been disappointed or even cheated. So take care and be smart.

For more, see our related article, Where to Find Cheap Cars.

For more, see LeaseGuide.com