The technology of the modern day has transformed how we live our lives. If you’re so inclined, you can get your groceries, prescriptions, tools, and pretty much most other things by making a few taps on your phone screen and waiting for a delivery. The digital era is even transforming car sales. Instead of going to a dealership, you can buy and finance a car entirely online without ever talking to a human. Have you ever bought a car from an online car dealership? How did it go?
In years past, shopping for a used car might have taken multiple days. You’d drive around to different dealerships, look at some cars, get the runaround from a salesman, and then do it all over again. Eventually, often right near the point where you’re exhausted, you pick a car, sign on the dotted line, and drive home.
In my experience, few people seem to actually enjoy the process of buying a car through the traditional method of visiting a dealership. You might have to negotiate with someone who spends each and every day negotiating. You then have to fend off dealer add-ons, market adjustments, and extended warranties. Of course, some used car dealers might not be as honest as they should be, too.
Part of what made Saturn great was that it got rid of some of the major pain points of buying from a dealership. The price you saw was the price you paid, and Saturn dealers at least tried to treat you like a person and not a walking bag of money. General Motors even strongly discouraged Saturn dealers from marking up popular models. It’s no surprise that Saturn dealers consistently rated high in dealership satisfaction surveys.
CarMax would adopt the Saturn model for its own business model, and it works. The Internet has supercharged this business model. What if there wasn’t a physical dealership at all? Companies like Carvana, CarBravo, and Vroom allow you to search for and purchase cars at home. You can even sign the paperwork in your underwear and then have your vehicle delivered right to your door. No haggling, no TruCoat, and not even human interaction, if you don’t want it.
Now, these companies are far from perfect. Carvana has been sued by several states for allegedly not following the law when selling cars. The car that you get from Carvana might also have some bizarre issues that should have been caught by the inspection that Carvana proudly advertises. Carvana also makes it shockingly easy to lock yourself into a loan with horrifyingly bad terms. At its worst, Carvana was allegedly selling stolen cars to people, and even cars that were kosher couldn’t be legally driven because Carvana allegedly didn’t send the vehicle owners their documentation.
Yet, for how terrible Carvana has been, I’m actually a two-time Carvana customer. My wife bought a 2010 Toyota Prius from Carvana in 2021, and I got my 2016 Mazda MX-5 Miata from Carvana this year. In both cases, the cars came largely as described, and Carvana’s process was painless from start to finish. Maybe we lucked out, or maybe Carvana has started to clean up its act. I plan on writing about my Carvana experience a bit later, but the short version was that buying from Carvana was one of the easiest car-buying experiences I’ve ever had.
This is not to say that Carvana is perfect today. In my experience, Carvana’s extended warranty is only slightly better than worthless, and Carvana still misses some issues concerning a vehicle’s condition. However, that’s not any worse than buying at a normal used car dealership.
Of course, buying a car online also tends to mean that you sign on the dotted line before you even see the car in person, which might raise some hairs on your body. Yet, people keep doing it. So, that makes me wonder, Autopians. How many of you have purchased from an online car dealership? How did it go?
Topshot image graphic: Mercedes Streeter
I have found just about every car I have bought since 2000 or so online but have never completed the transaction completely online before seeing the car. Pictures can make an edgy car look spectacular so years of seeing cars not live up to their online presentations has trained me to only purchase a car after I’ve physically inspected it.
A few years ago I bought our 2019 Flex from Vroom. I wasn’t excited about buying from an online dealer, but I wanted a Flex and there were basically none available locally, and the one I found ticked all the boxes in terms of age, mileage, equipment, and price. Generally, the transaction process was straightforward, though getting the physical paperwork done (that would’ve been 10 minutes in a real dealer) took days. I had the car checked immediately after taking delivery and found no mechanical issues, and the car has been great over the past three years.
TLDR, the online process was OK, but in person is still better.
I sold a vehicle to Carvana, but idk if I could buy one sight unseen. I test drove a car at Carmax recently. Looked great outside and in, and I’m sure it was in great mechanical shape. But the cabin had two distinct rattles that would drive me crazy, and they sure weren’t mentioned in the ad. I’d be afraid of similar or bigger issues with Carvana, who I simply don’t trust as a company after all their legal shenanigans.
“Have You Ever Bought A Car From An Online Car Dealership?”
Nope… and I have no plans to do so. Given that a car is a relatively large purchase, I am not going to buy any car unless I’ve inspected it myself.
Of course it’s easy for me to stick to that since I live in the city with an abundance of local car buying options near me.
Their whole deal is they deliver it to you and you get seven days to inspect or send it back, supposedly no questions asked. I’m not saying they’re good or you should do it, but your stated reason is one they purport to have covered.
The last two cars I bought were sort of online. Last year we decided to replace our 2017 Civic hatch with an EV. My wife and I decided to get a used Kia EV6. I did most of my shopping on Autotrader although I also checked out Carvana and Cars.com but couldn’t find the combination of color and trim we wanted. I found a yacht blue RWD EV6 Wind at a dealer in Ohio about 2 hours away. I called and asked a few questions about the car and then made an appt to go buy it. We drove down the next day, signed the paperwork, handed over a cashiers check and drove off. My wife loved driving the car for 3 months until some guy ran a red light and the car was totalled. I repeated the autotrader process and found a nearly identical EV6 with AWD and fewer miles for only $3k more. I called the dealer and paid a deposit to hold the car. I Once I got the payment from insurance a few days later, I hopped on the train to Chicago and completed the purchase in about 15 minutes and was back on my way to Michigan with the car. Easy as pie
My last car purchase was Carvana because they had the car I wanted in stock. The process was straightforward and painless. I even had a test drive and I dependent inspection before final purchase.
However, I had to be a pain in their tailpipe to get the registration completed. Took two extensions of the temp tags and many calls, including me showing up uninvited at their sales office. I did get the title and registration 70 days after purchase, but it was an ordeal.
Regardless of that, it was far better than the scummy-feeling dealership experience I had with a local Toyota dealership in the late 00’s, and much better than the independent used car place I dealt with that had frankenstein cars for sale with mismatched and broken pieces.
I have also recently bought a car from Carvana, it wasn’t my first choice after reading about their issues, but I wanted a specific color/option that is hard to find, and it was even low mileage and still has factory warranty left.
Your experiences you’ve written about helped me make the decision to go for it.
the process was surprisingly fast and painless, I didn’t finance through them, because yes their terms are bad. but otherwise the paperwork/etc went through without a problem, they even refunded me after asking for too much with the registration. I didn’t even request it or know, I just randomly got a check in the mail.
I payed for the car to be thoroughly inspected after it was delivered and while there were for sure some cosmetic issues that weren’t in the listing, it wasn’t something I couldn’t fix or notice easily, mechanically the car is basically still brand new and drives great. oh, they did give me some money back after I mentioned and showed pictures of the cosmetic stuff that wasn’t in the listing. of course I was going to complain to get some money back, but it wasn’t anything a full detail wouldn’t solve.
I have loathed all the time I had to spend at the dealership to buy cars before, so overall, I would probably do it again. They do still advertise that return or replacement guarantee.
I bought a car from Carvana online and had it delivered to my house. I drove it for two days and decided it simply wasn’t the car for me. I called Carvana, told them I didn’t like it and they picked it back up the next day without any hesitation. No hard sell, no trying to get me to keep it at all. It was really no different than a normal test drive at a dealership except I didn’t have to go anywhere to do it. No problem at all.
I did once from a (possibly defunct) one called Gettacar. It was a Ford C-Max Energi. When delivered the odometer didn’t match the listing by about 4k, the passenger side wheel well lining was gone, and when braking the car pulled to the right. I told them to come get it and give me a refund. To their credit they did, but delivering a car with the wrong odo reading and obvious unreported accident damage soured me on the experience pretty badly.
I bought 2 cars from Carvana: a Nissan Murano and a Tesla Model 3 from Carvana and both were totally fine. The loan terms were okay. Cars were totally as described. Wouldn’t hesitate to buy from them again.
No, and never will…to me, anyone who doesn’t test drive a car is a big dummy. “Yeah, but that TruCoat!”
GEORGE: Look at these salesmen. The only thing these guys fear is the walk-out. No matter what they say, you say, “I’ll walk out of here right now!”
(A salesman approaches)
SALESMAN: Can I help you with something?
GEORGE: (Threatening) Hold it! One more step and we’re walkin’!
(Carvana vending machine? Ha ha)
GEORGE: As you will see, the candy bar is paid for, and yet, remains dangling in the machine. (Notices that the Twix slot is completely empty) Hey, it’s gone.
Where is my Twix? (Quickly looks around. His sights fall on the window of a door labeled “Employees Only”. The same mechanic from before is eating a candy bar)
What?! That guy’s eatin’ it!
SALESMAN: Well, how do you know that one’s yours?
GEORGE: Uh, it was dangling! There were only two left in the machine! He must’ve bought one, and gotten both.
SALESMAN: Sir, are you gonna buy a car?
GEORGE: No! (The salesman walks away. He addresses the mechanic through the door’s window) Hey! Hey! I can see you! That is my Twix! (The mechanic eats the last of the Twix, obviously to make George even more angered. It works) Oh, ha, ha! Ho, ho!
How many Twix is that for you today, like eight Twix?!
Ha ha ha!
“TWIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIX!”
They’re all Twix! It was a setup!
Way back in 2007 I bought a new Nissan Frontier NISMO thru Costco online, just had to go to a local dealer the next day sign a few papers and get handed the keys in under 5 minutes, last I looked they no longer have this service.
I don’t get the appeal of buying something that will likely be the second most expensive purchase of your life sight unseen from a website. If I’m buying a car, especially a used one, I want to test drive it, get under it, open everything, and check it all out before I put any money down for it.
Carvana does give you several days after delivery to do all that or have your own inspections done before they complete all the paperwork and purchase, you can cancel the purchase at any time during with no consequences.
I mean, I bought our 5th gen Camaro online from a dealership in PA (I’m in MI) and had it shipped to our house, so does that count?
I’ve purchased from Carmax several times over the last couple of decades, but the one time I tried Carvana it went poorly enough that I will never consider them again. I don’t love the normal dealership experience, far from it, but at least I can see for myself the true condition of the vehicle before all the headaches involved with purchasing and scheduling delivery with Carvana (I’m no where near one of those car vending machines).
I’ve never actually bought from Carmax, but I have shopped there twice, and the experience was very positive. True to the article, it actually reminded me of my Saturn dealer from back in the day. Totally professional, no games or gimmicks — just like buying any other type of product from any other store. Imagine that!
Exactly. The grand irony is that Carmax has a reputation for asking more for their vehicles than a regular dealer, yet both times I purchased from them they were actually on the lower end of the price scale for the same vehicle from the surrounding dealerships. Certainly, they have cars that are more than their competitors, but that is not universal, and the buying (and selling) experience is much more pleasant.
Does buying a Tesla through the app count? It wasn’t the most seamless process. There were issues with the financing that I never got an answer to from Tesla. A banker neighbor gave correct advice on how to proceed. The mechanics of buying and picking up were smooth, though. I’d do online again if the one local dealer group I trust can’t swing the deal.
I’m a fan of Autotempest.com – it searches most of the common websites for me(carGurus and AutoTrader require 1 extra click). I found my last purchase, a 24 Hyundai Ioniq 6 AWD Limited as a CPO at a Hyundai dealer 400 miles away. They offered it ‘on-line’ – does that count as an on-line dealer?
The best part, is unlike CARVANA and others strictly on-line, this dealer knew the history of the car, and was willing to negotiate the price. Over the course of a week, the car price dropped from $30K to under $28K with no add-on BS, and the sale was made to me when they also offered to deliver it for free, saving me the hassle of a trip up there to pick it up. Hell of a deal for a nearly-new $56K 4.5 sec to 60 EV sedan.
Yes, I purchased it sight-unseen, but it was as good if not better than expected, and being a CPO with only 6,000 miles on it + 4/9 years left on the factory warranty, a very safe bet.
I know many dealers rightfully get a lot of crap due to shady sales and service, but if you’re willing to be straight and up-front with the salesperson (“Here’s what I am willing to do, and here’s what will make me walk…”), I’ve found some will play it straight and work with you. Others that didn’t want to play straight got a quick hang-up. I’d rather buy from a dealer than an on-line only non-negotiable reseller who has no history of the vehicle.
That said, I’ve SOLD 2 cars with no-hassle or haggle. Both times I got better then expected deals. A sale to Carvana and a sale to CarMax. Selling to on-line dealers is something I can approve, assuming the price is right.
I’ve sold two to Carmax and one to Carvana. No interest in buying from either, I find them wildly overpriced. Which is why they can pay so much so painlessly when buying cars.
I have bought a bunch of cars sight-unseen via online auctions. The price has to be right for that.
Ditto, sold my 2016 Miata to them during the pandemic and made a tidy $5k profit. But wouldn’t buy.
This is the future of car buying for many people. Dealerships only have themselves and their practices to blame. As long as Carvana, Vroom etc make it easy and painless to return a car that has issues not pointed out in the listing, they will continue to grow.
The biggest pain point is often the transferring of the title. If we can make that part easier, or at least more consistent from state to state this kind of car buying can only get better.
Vroom went out of business a couple of years ago.
I’ve been buying my cars online and out of start before it was a trend. Unfortunately the car market in Louisiana sucks and everything is overpriced. So I kind of have too.
I recently got a Kia EV6 GT from recharged.com. Mostly seamless transaction. They’re in VA, I’m in Ohio. Bought car on a Friday and it showed up the next day at 8am. It was temp-tagged for VA, with a 30-day expiry.
Recharged overnighted the VA and Ohio title paperwork to me, which I sent back the same day. Ohio requires a VIN inspection for an out-of-state-car. I provided that to Recharged, but their title company sat on it and it expired. Had to submit another VIN inspection and purchase an Ohio temp tag.
And well, here I am almost two months later…and I still don’t have an Ohio tag or title. Recharged says it’s been submitted to Ohio and I should have it by the 9th.
I’m not *annoyed*, yet. It would be nice if they communicated better / were a little more on top of things.
Got my 2020 regal tourx with 19k miles from Vroom in 2022.
Delivered to my door. Seamless transaction. Had to wait for a few days for the paperwork and plates, but all good.
The car was and still is perfect.
Only drawback? I’m in NYC and the car was in Oregon. $2k in transportation charges.
Happily paid since it was exactly what I wanted and there were only 2 available in the country at the time.
I looked at getting a TourX in 2019 but couldn’t get the price I wanted. How do you like yours?
Love it. Tuned.to 300hp. Quiet, huge cargo space. Awesome highway cruiser
I bought my 2018 Porsche Cayman from Carvana. Had it delivered to the store in Bridgeville, PA, just south of Pittsburgh from North Carolina for $100. Picked it up, had PA state inspection done and asked them to thoroughly check it out. All good. It’s been 3 years now and I love the car, and really liked the experience. THat said, the car vending machine was broken when I picked it up, so I missed out on putting the giant coin in the vending machine. Would I do it again? Absolutely! I may even consider trading my Bronco there when it comes time to move on from it. I’ve been eyeing up Grenadiers…
I haven’t but I know a few people who have done the Carvana thing. It seems especially useful for buying a few years old Camry. It’s not like you’re going to get a great deal at a dealer on a Toyota anyway, might as well make it less painful and go the online route.
I understand why this has become a popular option, and it wouldn’t be popular if it didn’t have satisfied customers. That said, I don’t think it’s right for me. I could be swayed by a delivered new car purchase, but even with a 7 day “test drive”, I don’t think I could pull the trigger on a used purchase without seeing/smelling/touching/driving/crawling under the thing.
I would buy a new car from some system other than a dealership. A used car I would not buy un-inspected/test driven/looked at. Every time I see an commercial for a use car easy buy app I cringe and say WTF.