Buy a car on the internet

The Internet has taken much of the guess work out of the car buying process. Shoppers are able to obtain a vast amount of vehicle information on the Web including specs, reviews and even prices. Gone are the days of going to the dealer, unarmed with information, and hoping for the best.

In addition to being a source for research, the Internet can also facilitate the purchase of a car. There are two general ways one can buy a car online, directly through a website or by being referred to a dealer.

Direct

With this method, you can buy a new car directly from a website that is not affilated with an automaker or dealership. The price is set beforehand - no negotiation is required. The largest website that offers this service is CarsDirect[1]. You still have to pick up your vehicle at a dealership, but all of the details are worked out before delivery. Through a direct method, you have different finance options that include using the website's banking partners or the manufacturer's finance arm.

Referral

Through a referral, a customer's information is sent to a dealer in his area. While you can't avoid a car salesman entirely through this process, a lot of the negotiation and finance details can be worked out online. There are different types of websites you can use to initiate the process, including those run by the manufacturer, the dealer or a third-party, such as CarsDirect [2]). While there can be some variance, generally, there are a few steps involved in the referral process:

• Fill out Form - You'll be asked to fill a out form with key details, such as contact information, type of vehicle you're interested in, how you plan on paying, etc.

• Contact from Dealer - Your information will be forwarded to dealers in your area. If a dealer is able to fulfill your request, you'll get an e-mail stating that your request was received, if the desired car was in stock, as well as the asking price.

• Finalize the Details - After your initial contact with the salesperson, the rest of the transaction kind of depends on you and the dealer. If you're comfortable with the car and the asking price, you can likely work out a lot of details before you even step inside the door of the dealership. On the other hand, if you're not sure about the car or the dealerhsip, you can arrange a time to go take a test drive and meet with the salesperson.

Submitting a referral, particularly through a third-party site, gives a potential customer the advantage of being connected with dealers who have the desired vehicle. This makes the shopping process a great deal easier and avoids the hassle of having to go from dealership to dealership.