Is Buying a Car Online Safe?
Oct 14, 2021 · 3 min read
Buying a car has never been easier, thanks to the internet. Consumers can go through the entire car-buying process from financing to contract signing all from the comfort of their home. This has made car shopping much more convenient.
However, it’s also made it easier for fraudsters to trick people. Here’s more information about the most trustworthy sites to buy from and how to avoid online car-buying scams.
Are online car-buying sites trustworthy?
There are many well-known online car buying sites like Carvana and CarMax. It’s best to research a site before you buy and go with major platforms that have a lot of customer reviews. Carvana offers a seven-day return policy and their vehicles come with a free Carfax report that helps give consumers more confidence in using the service.
It’s easy to see why people want to shop for cars online. It’s convenient and you can avoid any pushy salesmen. But, you still want to make sure you follow all the best practices for online shopping.
Services like Carvana are making online car buying easier
Carvana is the new Amazon-esque car seller in town. It’s an online used car retailer that offers all the services that would be available at a physical dealership. With just a few clicks, you can place an order for a used car and have it delivered in approximately one to two weeks.
Alternatively, you can visit one of Carvana's vending machines to pick it up the day after you place the order.
While Carvana isn’t as established in the market as used car retailers such as Autotrader, it’s hard to ignore its convenience. Other than signing the paperwork and picking up the keys to your new ride, everything else can be done online. Carvana also offers a 100-day warranty on all purchased automobiles.
Tips for buying a car online
The steps to buying a car online are very similar to buying one in-person. You’ll want to make sure you research the vehicles you’re interested in and know your budget. Online dealers typically offer a grace period for you to test drive your car.
But there are additional things you’ll have to look out for if you’re shopping online.
According to Edmunds, many consumers have fallen victim to fraudulent vehicle shipping companies and sent money to fake websites. You should avoid websites that have suspicious URLs. If they’re imitating a reputable company, do a search of the official site yourself.
Financial Impulse recommends some other tips for buying a car online:
- If a deal is too good to be true, it probably is. If the price is much lower than the retail value of the model you want, it could be a sign of a scam.
- Get a third-party inspection. Most online dealerships have a return policy and you want to make sure the vehicle matches the listing.
- Don’t rush your purchase. Take time to consider your options and compare pricing from different dealerships.
Once you’ve purchased your car, you can also get car insurance online.
Jerry is an AI-powered insurance broker that lives in your pocket. The app makes shopping for insurance easier than ever. Jerry helps you compare rates from 50 name-brand companies to get you the best price for the coverage you need.