Buying a Car: Online or at the Dealership
The age-old debate on whether it's better to buy a car online or at a dealership is a complex one, influenced by various factors such as convenience, affordability, and the human experience. Both methods have their pros and cons, which we will explore in this article.
Consequences of Buying a Car Online
While online car buying has gained popularity due to its convenience, it's not without its challenges. One major concern is the risk of misrepresentation. Sellers may exaggerate or misrepresent the car's condition, leading to issues like mechanical problems or hidden damage. Additionally, online transactions lack the personal touch that in-person interactions provide, reducing the ability to ask questions, test drive, and gain insights into the car’s features.
The Human Experience at the Dealership
Many individuals prefer shopping for cars in person at a dealership due to the human experience it offers. This real-life interaction allows you to physically feel the car, step into the driver's seat, and engage in detailed conversations with salespeople. You can customize your car to your preferences, take a test drive, and even haggle over the price. These experiences are invaluable and cannot be replicated online, making the dealership a highly preferred option for many.
Key Differences: Test Drives and Returns
Much of the difference between buying from a dealership and online lies in the ability to experience the car firsthand. When you visit a dealership, you can request a test drive, which is often different from online experiences. Dealerships often have a smaller selection of pre-booked cars, and if they realize you are not seriously interested in purchasing, they may not offer you a test drive. This can limit your ability to fully evaluate the car before making a decision.
Furthermore, once you purchase a car online, you are essentially purchasing a new car that becomes a used car upon completion of the transaction. This means there is no return policy unless there are extreme and rare circumstances. This can be a significant drawback for those who are not sure about their purchase.
Regulations and Authorizations
In the United States, buying a new car always requires a visit to a dealership. Each state has franchising laws that mandate the purchase of new vehicles from certified dealers. This requirement is in place to protect consumers and ensure accountability. However, Costco is a notable exception, as they sell more cars than all other dealers combined due to their flat-rate pricing structure. Even when using services like Costco, you are indirectly working with a dealership through their authorized mechanism.
There are a few states where Tesla has challenged these regulations, but even when purchasing a Tesla, you must ultimately go through a dealership. This is a critical point to consider when exploring car purchasing options.
Price and Commissions
Another factor that makes online car buying appealing is the potential for savings. Dealerships often charge higher commissions for sales made in-person compared to those made online. This means that buying a car from an online dealership can be more cost-effective. For example, a study by J.D. Power found that online car buyers can save an average of $1,000 compared to buying from a traditional dealership.
Conclusion
Ultimately, whether to buy a car online or at the dealership comes down to your personal preferences and priorities. If you value the human interaction, convenience, and potential savings, online car buying may be the better option for you. However, if you prefer to experience the car in person and have the flexibility to ask detailed questions and make customizations, a dealership may be the way to go.