Buying On the Internet:  The Process Explained

JD Power reports that nearly two-thirds of dealers (61%) are signed up with at least one independent online buying service, up from 55 percent last year. Internet buying services are great for busy people who don't have time for shopping, and for cost-conscious consumers who dread negotiating with dealers.  You can use the internet to locate and buy a used vehicle providing you find one with a manufacturer's certified warranty and can can do a road-test and a thorough inspection. Although we are an affiliate of

The Process Explained - The Internet site (we recommend Autobytel.com, Autoweb.com, CarPrices.com, CarsDirect.com, CarSmart.com, FordDirect.com and Stoneage.com) will send your model and option choices to all of their dealers in your region, who check their inventory and return a quote if they find a match.  If more than one vehicle matches your inquiry, the dealer with the lowest quote gets the deal.  Within 24 hours, usually sooner, you'll receive an email with a guaranteed price for the car (eg: $200 over invoice), a confirmation number, and a list of current rebates and incentives that apply.  You are guaranteed to be able to lease or purchase the vehicle at this price from the dealer mentioned, but you are not obligated: it's a free quote.  Many dealers belong to several services, so we suggest that you get competing quotes from all the recommended services and compare the results.  Print out the winning site's e-mail confirmation and telephone the dealership's internet sales manager for an appointment.  Ensure that the vehicle is in stock and that loaner tags are available for your test-drive.  At your appointment, the internet sales manager should show you the factory-to-dealer invoice, and  the numbers should match the ones the site sent you.  Most sites allow their dealers to add gasoline and advertising costs (usually $200-$400) to their invoices.  Be aware of the 2% to 3% holdback (additional profit of $540 - $810 on an average $27,000 new car; see Final Negotiations) the dealer will receive from the manufacturer when the car is sold.  High-volume dealerships qualify for additional manufacturer discounts as well as dealer holdbacks, and are usually willing to sell vehicles at or near invoice.  If you like what you see and hear, take the vehicle for a test drive, then buy it.  

Free Sites - Discount referral services like Autobytel.com, Autoweb.com, CarPrices.com, CarsDirect.com, CarSmart.com, FordDirect.com and Stoneage.com (all recommended) provide a discount selling price by collecting referral fees (typically $200 per unit sold) from the auto dealers in their buying network.  They perform the same function as an auto broker, often with quicker and better results.  (I should know, I'm an auto broker).  Dealers benefit from the increased traffic, decreased marketing and sales costs, and motivated, educated buyers.  Major shopping clubs like Sam's Club offer buying services to their members, and manufacturers are getting into internet sales with direct to consumer sales sites like General Motors' GM BuyPower and and Ford Motor Company's FordDirect.com . 

Why do we recommend Autobytel.com, Autoweb.com, CarPrices.com, CarsDirect.com, CarSmart.com, FordDirect.com and Stoneage.com over other online buying sites? 

• Autobytel.com, Autoweb.com, CarPrices.com, CarsDirect.com, CarSmart.com, FordDirect.com and Stoneage.com have instant name recognition and are all well-respected by auto dealers as well as customers (we've heard no complaints concerning any of them). 
• All 7 sites pride themselves on making sure their dealers don't haggle with you. Many dealers have been expelled from their programs for trying to haggle with customers.
• Of the many people we know who have bought cars online, those who purchased through  Autobytel.com, Autoweb.com, CarPrices.com, CarsDirect.com, CarSmart.com, FordDirect.com and Stoneage.com were treated significantly better than the rest (again we've heard no complaints concerning any of the seven).
• Their combined sales of well over 100,000 cars a month gives them bargaining clout with their well-established 6,000+ dealer networks. Participating dealers are required to go through a training course to learn listening skills and low-pressure customer service techniques. They also require that dealerships establish a separate department for the online buying with salaried, noncommissioned employees.
• Once you receive the bids, in some cases you have the choice of talking either with the dealer or with an employee of the buying service. With the no-dealer option, the service can deliver your new car directly to your home or office, you never have to set foot in a dealership!

Fee-Based Sites - Fee-based sites such as Fighting Chance may offer a lower price than brokers or referral services, as each deal is bid on by several dealers, forcing the price lower.  Since you pay a fee up front, dealers know you're serious, and are likely to give you a better deal.  The better services guarantee you the best price or your money back.  Beware: some sites will try to charge you a non-refundable deposit; others will charge you if you renege on a deal.  Go to the free sites first, as sometimes your savings won't be any better with the fee-based services (especially after you add on the fee) .  You'll quickly discover your automobile's fair market value, and will know a good deal when you see it, no matter where you buy your vehicle.

Hard-To-Find Vehicles - Vehicles in high demand may be considerably more expensive than dealer invoice.  Certain models in short supply, such as the Mercedes-Benz CLK Cabriolet, must be ordered.  Here's a list of motor vehicles I've found either in high demand or in short supply. Aston Martin (all models), Audi S4/RS4, Audi S6/RS6, Audi A8L (2004 only), BMW 3 Series Wagon (4WD only), BMW M3, BMW M5, BMW Mini Cooper S, Chevrolet Corvette ZO6, Chrysler Crossfire, Dodge Viper, Ferrari (all models), Ford Mustang Cobra SVT, Honda S2000, Infiniti G35 Coupe, Lamborghini Murcielago, Maserati (all models), Mercedes-Benz CL 500, Mercedes-Benz CLK Convertible, Mini Cooper S, Nissan 350Z, Panoz Esperante, Porsche 911 Turbo, Porsche 911 GT3, Porsche 911 RS, Porsche Cayenne, Volkswagen Touareg, Volkswagen Phaeton, and Volkswagen Passat W8 (Sedan & Wagon).

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