Ever since the inception of the internet, we have seen industry after industry going online due to the convenience, knowledge, and plethora of options available. As the internet and other technologies evolve more and more people are going online not just to watch a trending video on YouTube but to buy things like clothes, food, electronics, and even big-ticket items like cars and homes. However, lately, more people want to be able to procure a vehicle completely online. One company that is quite popular is Carvana, they allow you to buy used and new cars 100 percent online, and not only that, you can actually sell your car to them as well.
Carvana is well known due to its strong marketing campaign and ability to get the car you need online. If you came here to find out if there are other online car dealerships, you came to the right place because there are and they all have their own specializations. Although Carvana is a great online dealership, you may find out that based on your needs and style of shopping another online competitor might be a better choice. So let’s jump in and learn more about online car dealerships and companies that are the front runners in this industry.
The Appeal of Online Car Dealerships
Online car dealerships are becoming the go-to option for many car shoppers due to a list of reasons like the ones we listed below:
Convenience: If you can sit in your cool air conditioning home without having to drive dealer to dealer for days and get a car with a few clicks of a mouse why would you not want that? Online car dealerships offer a much better way to shop than a traditional dealership.
No Pressure: Most individuals think of sales managers and their staff who are ready to jump on them as soon as they pull into the dealership parking lot with lots of back and forth to not even get the best deal. With an online car dealership, there are no high-pressure sales tactics but simple options in front of you that you can choose from.
Best Deal: Online car dealerships allow you access to huge nationwide inventories of their own and sometimes of others as well. This helps you as a consumer pick the best deal in the country versus taking whatever the local dealer is offering you.
Variety: If you’re looking for a specific custom car, a certain color or trim, an online dealership is more likely to have that option for you since they are not limited by the space of the physical location.
Return Policies: For those that say you don’t get to try the car out, well the online car dealerships typically allow you to return a car if you don’t like it for up to 7 days.
As you can see, online car buying can in many ways be a much smarter move to make and it really doesn’t have too many shortcomings when compared to a brick-and-mortar dealer. Now that doesn’t mean there aren’t any, for example, you can’t touch or feel the car or test drive it on the spot with online buying, so you really have to rely on previous experience or digital content available. Also, there is going to be a delay to get the car delivered typically about a week or two depending on where the car you bought is located. In the event, you are a hands-on type of individual who can’t wait to get into a new vehicle then the traditional way of car shopping may be the route for you.
If you read this far into the article you have a pretty good idea of what online car dealership offers and its pros and cons, so now let’s see the major players in this industry.
Best Online Car Dealerships
1. DriveOZ
One of the most exciting car buying and leasing platforms to hit the online car market, this company blends technology and outstanding human customer service together to bring an ultimate experience to their clients. Unlike other platforms that specialize in one particular area or another, DriveOZ is a one-stop shop for buying or leasing cars. They are also able not to only offer you their inventory but they can shop with any manufacturer in the country to get you the best car and deal. The reason they are able to do this is that they are nationwide car broker in addition to being a dealer. If there are special incentives or manufacturer’s special deals, DriveOZ will ensure you have access to them.
Besides giving you the ability to buy a car completely online without walking out of your home, they are unique in a way that you’ll be assigned an expert to guide you through the entire process. Not only are they there to answer your questions but they will search for best deals and negotiate on your behalf. If you’re looking for an online car dealership that has a personal touch and full service then DriveOZ is the one for you.
- Nationwide car broker and dealer
- Personalized expert guidance
- Access to special incentives and deals
2. CarMax
Everyone has heard of CarMax one way or another, this is an industry giant that was originally known for creating the no-haggle price for their cars. CarMax gives you the ability to do the entire car purchasing process online and with access to their inventory which is the largest in the nation. Their inventory is what makes them really unique since you’ll have a ton of cars to choose from that can be delivered right to your front door. It is also a one-stop shop since CarMax provides a great variety of financing options for people with various credit histories. The only shortcoming with CarMax is they do tend to charge more for their vehicles compared to other online dealerships. If you’re looking for great cars, lots of options, financing, and amazing service this is a great company to go with but not if you’re looking for the best deal around.
- ‘No-haggle’ pricing
- Largest national inventory
- Variety of financing options
3. TrueCar
One of our favorites is TrueCar, they have an amazingly beautiful website with great functionality and lots of useful information. TrueCar really spends a lot of time and effort on creating a great blog and a few guides to educate people on car buying and leasing in depth. They are also one of the few companies that will let you complete the entire purchase online and you can get a pretty good idea of how much you’ll pay and know all information about your vehicle. Unlike DriveOZ they don’t work with every dealer but have a set number of dealerships they work with to offer you a selection of cars. If you’re looking for the absolute best deal or large inventory they may not be the right one, but if you’re looking for a particular car with an easy way to shop for it online and lots of educational content they are definitely the right company.
- Network of over 13,000 dealers
- Price analysis and transparency
- Special perks for military personnel
4. DriveTime
This online dealer has a specialty in selling used cars and they have a pretty decent sized inventory. On their site can view their active inventory, apply for credit, and see exactly what you’ll be paying for a specific car. You’ll know exactly what to budget for and how much downpayment you will be required to provide. They also have many physical locations so if the car you like is close by you can get it fairly quick. Overall this is a great dealer for people who have difficulty getting financing and also are in the market for affordable used cars with a 1500-mile warranty and a 30-day return policy. If you’re looking for new cars or higher end then they may not be the best bet.
- Specializes in used cars
- In-house financing available
- Vehicle Reservation Program
5. Vroom
Another great used car online dealer with a strong focus on technology and smooth processes is Vroom. They too sell only used cars and have a strong focus on competitive pricing. If you don’t like the car they deliver they offer a 7-day no-hassle return policy and a free carfax with every car so you know the vehicle’s history.
- Competitive pricing on used cars
- 7-day return policy
- Limited warranty for 90 days or 6,000 miles
Any of these companies on the list are going to be an overall great platform to secure a lease with but before you e-sign your lease online, let’s learn some helpful tips before moving forward.
Things to do before buying a car online
- Improve credit – you’d be surprised to learn how much of a difference credit can make in the monthly car finance or lease payment. Oftentimes you may need to pay down a fee for small cards and dispute some discrepancies on your report to remove them to see a nice jump in your score. This can mean 1000s in savings every year.
- Save Up Bigger Downpayment- Putting a more significant down payment will get you better loan terms and lower monthly payments.
- Secure Financing- Many online dealers offer financing but you may be able to get a better loan term with a local lender or credit union where you have an established relationship.
- Research- We all have a few dream cars in our mind but not all cars are created equal and some can be a mechanical nightmare or a disappointment once you drive them. Since you are buying a car online is best to do your due diligence before finalizing your deal.
By following these steps you’ll have all the advantages to get the best deal and terms on your online car lease. At this point you must be excited to get your lease experience going so let’s wrap this up.
Wrapping up
Buying a car online with a reputable online dealership is slowly becoming the more popular alternative to traditional car buying. You can skip the extra driving around time and stress that comes with traditional car buying by making the purchase completely online. Although there are many car shopping sites out there like Autotrader and Cars.com, not many offer a complete car buying process online.
Sites like Carvana have done much work when it comes to marketing and bringing awareness to customers that there is a better way to shop for cars. Even though Carvava is a great site many folks want alternatives because each person’s situation is different, some have bad credit, some want to lease online, others want used cars, and many other scenarios. Luckily we covered there are various online dealers to work with and they all have a specialty that they hone in on. Remember to really do your homework to ensure the company is legit and they are able to get you what you are looking for.
Our favorites on the list are obviously ourselves DriveOZ, and also TrueCar and Carmax. DriveOZ does take the first place because just like other online dealers they offer an online platform to buy or lease a car but they added a personal touch by providing a professional assigned to your deal. If you are ready to get your car completely online for an amazing offer, click here to get started.