Car Shopping Online Saves You Money

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Pros and cons of why you should do your automobile shopping online.

Bored, irritated, frustrated. No, not a hormonal teenager but a description of someone trying to buy a car in a dealership. All you want to do is get some information about cars and It’s like the salespeople want to make it as difficult as possible. A visit to the dentist promises to be more fun.

Table of Contents

Why the dealership experience usually always sucks

No wonder people put off car shopping for as long as they possibly can. This is why more people are turning to the internet to do their automobile shopping online.

Buying a car shouldn’t be hard work, and it isn’t if you know how to correctly shop for a car online. The World Wide Web can serve up all the information you need to find the right car at the right price.

There are two problems with marching down to the dealership once you’ve decided it’s time for a new ride. First, it’s a bad place to learn about the vehicles available, and second, it’s a bad place to get a good price.

Step-by-step walkthrough on how to buy a new car | New Car Buying Cheat Sheet

Must-Read Guides and Resources

How to Buy a New Car Below Factory Invoice Price – True dealer cost and the factory invoice price are not the same… dealer cost can be much lower.
Figure a Fair Profit New Car Offer – How to calculate a fair profit new car offer.
How to Buy a New Car Online – Not sure where to start? My step-by-step guide on how to buy a new car online.

Dealerships are a bad place for learning

If you visit a dealership hoping to learn about the cars a manufacturer builds, you’re in for a disappointment. These guys aren’t interested in educating you about models, trim levels, engine choices, and optional features. That takes time they’d rather spend with someone ready to sign on the dotted line.

You see, a car salesman understands he isn’t making any money unless he’s selling a car. No matter what they say, they don’t want to waste several hours with someone who’s “just-looking” when they have an opportunity to grab someone ready to buy a car right now.

Once they realize you’re just gathering information and not buying today. They’ll still try and sell you a car, knowing they don’t have anything to lose. However, you will probably get pawned off to a “newer” salesperson, waved off with a card and brochure, or even just flat ignored until you finally decide to leave.

You could complain to the sales manager. Of course, they will most likely ask you one question. “Are you buying a car today?” If you say, “no,” you probably won’t see much of them either.

It’s not much different if you’re shopping for a used car. Car salespeople are not your personal shoppers and you shouldn’t expect to get an unbiased recommendation from them.

If you don’t know what type of car you want, they’re going to steer you towards a car they think you should buy. And guess what? That’s the one that maximizes their commission and puts the most money in their pocket. It’s guaranteed it will not be the one that would suit you best.

How many times have you heard a friend or family member say, “When I went to the dealership, I wasn’t expecting to buy a car today.” That is the worst statement anyone can make and when visiting a car dealership unprepared it’s the biggest mistake ever. There’s a car salesman still on vacation with the commission they made on that car deal.

It is never a good idea to just “pop in” a dealership to look at cars. The whole car sales model is geared towards people just dropping by to take a look. Always research the entire car buying process and do your automobile shopping online before contacting a dealership. This will save you the most money and help you recognize and avoid some of the most common car buying scams.

Car Price Quotes

Use my recommended tools to find the best deals in your local area.

Rydeshopper
Edmunds
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A bad place to get a good price

New cars will usually have a sticker on the window. The trade term for it is the Monroney sticker. This tells you what the car is, lists all the equipment, and tells you the price. Is that what you’d pay to drive it away? Almost certainly not, this is the Manufacturer’s Suggested Retail Price (MSRP). Many times a dealer will add an additional sticker (addendum sticker) to the vehicle as well. This sticker will have many high-profit dealership-added options that may, or may not, have been added to the vehicle.

On the minus side, there may be dealer incentives or manufacturer rebates available that bring the price down hundreds or even thousands of dollars. Other factors that may affect the sticker price are taxes and a range of dealer, city, or government fees.

Car dealerships don’t want transparent pricing like in the grocery store. They want to engage you in conversation. They’ll try to find out what you can afford, and what you’re willing to spend, and then they’ll find a car that maximizes what they can extract from you.

Another reason they hate transparency: they don’t want you shopping around. They know this will almost always decrease their chances of maximizing their profits. They want to keep you in their office until you agree to sign.

And don’t forget, if you do agree to buy a new car in the dealership it’s not over yet. You’re about to meet their highly paid, highly skilled Finance and Insurance (F&I) guy. His job is to sell you backend products and most likely, things you don’t need. He starts with the many different finance options and over-priced extended warranty products but quickly moves on to windshield protection and rustproofing.

Mind you, you just went 12 rounds with the salesman. This is not the time to be numb to the issue at hand. The finance and insurance department is one of the highest profit centers in a dealership. It is very easy to get confused during this time of the car buying process. Unless you’re very strong-minded it’s easy to end up paying for extras you didn’t want.

Used car buying is hardly any different, except it’s less transparent. You don’t even have a Monroney sticker to show you the MSRP. And comparison shopping is hard because you’re trying to compare age, mileage, and condition as well as models and trims.

Review my Automotive Finance Guide for everything you ever wanted to know about auto finance loans and how to avoid dealer finance scams.

Recommended online auto loan sites

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What is a dealership visit good for?

Two words; test driving. You can do all your research online and even get free new and used price quotes from websites such as Ryde Shopper, Edmunds, or Cars Direct. But you can’t tell how a car feels without getting behind the wheel. But again, don’t show up not knowing what you want to drive.

Instead, call or email the dealer first. Let them know you’d like to drive a specific make and model of car. They won’t mind. It makes their life easier because they get to spend less time with you and they can make sure the car you’re interested in is available.

After speaking with you for a couple of minutes. The salesman will understand you’ve been doing your homework and have been educated on the car buying process. They will also know you may not be a high commission sale, but if they treat you with professionalism and respect. You will be an easy quick sale if you choose to buy the car they have for sale.

What you need to know before buying

Let’s look at what you need to think through so you can buy a car you’ll be happy with.

Start by considering your needs, priorities, and of course budget. This is where reality sets in. Put on hold those dreams of a two-seat convertible and recognize that you need an SUV with plenty of room for dogs, kids, and sports gear.

In terms of priorities, are you focused on safety and fuel economy, or are towing capacity and AWD more important? If safety scores highly for you, you may want to look for cars with advanced driver assistance systems like blind-spot warning, active cruise, and a rearview camera.

Then give some thought to features you might enjoy. Heated seats, for example, they’re great if you park outdoors overnight in the Northeast, less important if you never leave the Southwest. Or what about a sunroof? And then there’s color, paint, and interior, to consider, along with wheel options. (Bigger isn’t necessarily better.)

Best New Car Quote Services

RydeShopper has one of the largest new car dealership networks in the world. Select the make and model you’re interested in and they will instantly search clearance pricing within your local area. Don’t forget to select as many dealers as possible to increase your chances for the greatest discounts and savings.

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Edmunds is one of the oldest and best new car research and review sites on the internet. Their huge dealer network allows you to shop, research and compare millions of new cars so you can find the exact vehicle you’re looking for.

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MotorTrend is one of the best kept secrets on the Internet. Best known for their automobile magazine, MotorTrend has a vast dealer network across the nation. Their referral service is 100% free and there’s no obligation to purchase. Pick a vehicle, select local dealers, and receive discount pricing.

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CarsDirect has been in online vehicle research business since 1998 and has all the right tools to help you find your next car, truck or SUV. They offer a no-hassle experience from configuring a car to making the final purchase. You’ll find your next car quickly and easily.

See Cars Direct Pricing >>

See All Online Car Buying Tools

Where to get that information

If you’re not sure exactly what you want, this is where automobile shopping online can help you. First off, visit some manufacturer websites. Be very careful when requesting more information through nationwide websites like Chevrolet, Ford, Toyota, etc. Many times these sites are computer operated and will shotgun your information out to several dealerships within a couple of hundred miles. Your email and phone will be hammered with people trying to sell you a car, some of these salesmen can be very brutal.

You can browse online automotive magazine articles for information. Bear in mind that an enthusiast magazine may not be written with the same mindset as yours. If we followed their advice we’d all be driving stick-shift diesel wagons and Miatas. Many times the articles in these magazines are written to favor the manufacturer that has paid the highest price to be #1 in the article.

Don’t overlook two government websites as excellent unbiased information sources. Both fueleconomy.gov and safercar.gov have hard data derived from actual testing collected from all over the nation. Run by the National Highway Traffic Safety Administration (NHTSA), safercar.gov also has information on recalls, which is very helpful if you’re shopping for a used car.

If you already know what make and model appeals, and you’re buying used, getting details about specifications is quite hard especially what a used car sells for in your specific area. The best place to get free price quotes online is Ryde Shopper, Edmunds, and Motor Trend.

Just one more thing to add about the manufacturer’s websites. Details about models and trims are difficult to come by, they just want to build an image of what kind of person buys this particular vehicle, but most offer a configuration tool. This lets you click through to explore all the different options available. When you’re done it will tell you the price and offer to put several dealers in touch with you. That’s when you stop clicking! It’s time to get some free online competitive quotes.

Keep in mind, the manufacturer wants to buy one of their vehicles at the highest price possible. The more money the dealer makes, the more money they make by selling more cars to the dealership. Just like dealerships, automobile manufacturers are “For-Profit Businesses!”

How to get competitive price quotes online

Before talking about prices, let’s review. We’ve established that you’re going to work out what car you want before visiting the dealership. If you’re down to just a few possibilities, you’ll schedule test drives to help you make a final decision.

Each dealership will of course want to know if you’re going to buy from them and roughly when you’re looking to make a final decision. It’s legitimate to say you want to drive some other cars first before deciding.

Just be polite and let them know upfront. It will be appreciated and you won’t cause any offense.

Start Your Low Price Bidding War Here
Ryde Shopper | Edmunds | Motor Trend | CarsDirect

And now you’re ready to find out the best price you can get your chosen car for. There are two approaches you can take to this: contact each dealer directly, or go through an online service and let them do the work for you.

Many times it works out better than contacting them directly because a dealer will know for sure that your quote not only came to them. But any other same brand dealer in the area. This will automatically make them relook at the quote they send you knowing they compete with other dealers in the area.

Contacting dealers directly means working with their internet sales department. You just email them the exact details of what you want and ask for their best price. They’ll usually respond quickly and oftentimes the prices you’ll be quoted are pretty competitive (and far better than what you’d get in the showroom.)

Alternatively, a free online quote service will do this for you, saving time and money. Ryde Shopper and Motor Trend are great examples. Their websites are very easy to navigate and have tools like a payment calculator plus a form where you enter details about the car you want. You also put in your zip code and then the site offers you a list of local car dealers. You can pick up to five dealers that have the car you’re interested in and they will respond to you with their quotes.

Learn how to use free online new car price quotes to get an even better price by negotiating with car dealerships online.

Automobile shopping online is key

Car showrooms are not the place for learning about the car you’re interested in. The salespeople don’t want their time taken up with people just kicking tires and often they don’t have all the facts and figures you might be seeking. All they care about is finding out how much money they can persuade you to part with so they can maximize their commission.

The much smarter way of shopping for a car is with your browser, the one on your laptop, PC, or mobile device. Research the vast quantities of facts and opinions online, figure out what you want, and then invite dealers to quote. It’s easier, it can save you time and money, and it’s all done from the comfort of your kitchen, lounge, or study.

Be a smart online car shopper

The number one tip for saving the most money when shopping for a new or used car is to always, “DO YOUR CAR BUYING HOMEWORK FIRST!” For more hints and tips on navigating the new and used car buying process, spend a little time upfront before beginning your car shopping journey by browsing through my 100% free online car buying guide – AutoCheatSheet.com.

As always, I recommend using an online referral service such as Ryde Shopper, Edmunds, and Motor Trend before visiting a car dealership. Their free online price quotes will automatically include any discounts or cash-back incentives currently available in the marketplace.

About the author

My name is Carlton Wolf and I have been in the retail and wholesale car business for well over 20 years. I created the Auto Cheat Sheet to better educate buyers on the deceptive sales practices found in many dealerships across the country. Please understand, not all car dealers are dishonest. However, you never know who you will be dealing with.

I’m willing to share my knowledge and experience with anyone willing to listen. Please understand that I am a car guy, not a writer.