QUESTION: How do the online car buying services like the ones you have listed on your websites work?

September 04, 2005

Hello Tony

First of all, I greatly enjoy your website! The information is greatly appreciated; I do have one questions however:

I am heavily leaning towards buying my next vehicle (a 2006 VW Golf GLS TDI) through one of the online buying services you list on your website. Can you give me some details about how that process works and what I need to know to get the best deal?

I've never used one and it makes me a bit nervous! However, if I can avoid a car dealership "boiler room" I'd love to.

Thanks for the help. You are doing a great service to the American consumer!

Jordan S.

Answer:

Hi Jordan,

Thank you for your kind words about my website. They are greatly appreciated.

Now to answer your question:
Most of the online services you mention have a network of car dealers around the country with whom they work. These dealers usually have a dedicated internet person who will contact you to arrange a deal. You can usually work out most of the details over the phone or by email before actually going to the dealer.

One service in particular - CarsDirect - offers a service where you can actually purchase your car through them. I believe they kind of act as your representative or as a liaison between you and a local dealer.

Jordan, just read the information on my website and you will be able to do just fine even if you choose to go to a dealer yourself. The key things to remember are:

1. Regardless of what sales tactics the dealer or sales person try on you, stay on track and negotiate the selling price on the car your interested in only. Don't let them sidetrack you from that strategy. You are in control!

2. Don't negotiate a car payment. Remember . . . car price only!

3. Don't negotiate the deal on a price-difference if you are trading, or on the trade-in allowance. You can work that out after you have a firm price established on the car you want to buy.

4. Arrange your own financing ahead of time. One excellent source is RoadLoans . They will actually send you a RoadLoansCheck to take with you so you can negotiate as a cash buyer. My daughter did this recently and they were great to deal with.

5. If the sales person tries to throw you off track tell him or her to forget it, and just get up and leave.

You're in control unless you allow them to walk all over you. There are plenty of dealers out there who will welcome you and appreciate your business. Don't deal with the jerks. Just leave and go somewhere else.

I'm confident you'll do just fine. Think things through, take your time and don't make any impulsive or emotional decisions.

All my very best...

Tony Iorio