How to Buy a Car Online in 9 Steps

Buying a car online means taking strategic steps to secure the best deal. Start by setting a budget using online tools like an auto loan calculator, and explore trade-in options with CarMax and Carvana for maximum savings. You can also obtain pre-approved financing to streamline your process and schedule test drives to assess the car's performance.

We've compiled nine steps to help you smoothly navigate the online car buying process, including tips on avoiding scams, scheduling thorough inspections and post-purchase essentials for a stress-free experience.

When buying a car online, begin by setting a budget to determine what you can afford. This initial step involves evaluating your financial situation and deciding on the maximum amount you’re willing to spend on a vehicle.

Once you have a budget in place, familiarize yourself with the cost of owning a vehicle. This includes the purchase price, loan interest, insurance, fuel, maintenance and parking. Researching these costs will help you understand how they impact your monthly expenses and the overall affordability of a car. Additionally, factor in any existing vehicle loans and how they might affect your new car budget.

Pre-approval for a loan streamlines the car buying process and strengthens your position to secure the best possible deal. It sets a clear price range so you only consider vehicles within your budget. Pre-approval also provides leverage in negotiations, as sellers see you as a serious and financially prepared buyer.

To get pre-approved, explore options through banks, credit unions and online lenders. Know that each financing option comes with its own set of pros and cons. Bank loans might offer competitive rates, but credit unions often provide more personalized service and flexible terms. Online lenders can be convenient and fast, but be sure to check their credibility and terms thoroughly.

Our guide on how to get pre-approved for an auto loan provides detailed steps and resources to help you navigate this process.

Choosing the best car model involves thorough research and careful consideration. Use research tools that provide rankings and reviews for both new and used cars. Websites like Edmunds, Kelley Blue Book and Consumer Reports offer detailed comparisons based on factors such as reliability, safety, cost of ownership and fuel efficiency. These resources will help you understand how to buy a new car or used car online, guiding you to make an informed decision.

During your search, look for cash rebates, low-interest financing and subsidized lease deals, which are often available on manufacturer websites and dealership promotions. To maximize your savings, consider purchasing at the end of the month or during holiday sales events.

Once you’ve narrowed down your selection to specific car models, check the online inventories of dealer websites and third-party sites like CarGurus and TrueCar. These platforms provide a wide range of options and allow you to compare prices, features and availability. By cross-referencing these with the average price of a new car, you can assess whether you’re getting good value for your purchase.

You should expand your search area beyond local dealerships to explore better prices and more choices. Many dealerships offer nationwide shipping and competitive pricing, so don't hesitate to look beyond your immediate vicinity.

When reaching out to Internet sales managers, ask questions about the vehicle's condition, history and availability. Clearly communicate your requirements and preferences to help the sales manager understand your needs. To effectively negotiate, discussions about financing and trade-ins should be kept separate initially. This allows you to secure the best price for the car itself before introducing other variables.

If you’re looking to purchase a used car, always request and thoroughly review vehicle history reports to verify there are no hidden issues or past damages. Compile detailed records of all offers and negotiations, including emails and documents exchanged, to ensure transparency and avoid misunderstandings. This approach will also help you stay organized and confident throughout the buying process.

In-person visits to dealerships are essential for car-buying, even if you end up buying from a different dealership. Inspecting the available vehicles firsthand can reveal options that online searches may miss. Test-driving vehicles can also help you feel more confident in your purchase, especially if you’re buying your first car.

Many manufacturers now offer virtual test drive tools for you to experience the car's features and performance online. These tools provide a good initial feel for the vehicle, but it's still important to schedule an in-person test drive to truly understand how a car handles and operates. You can do this at a dealership or through at-home test drive programs offered by some sellers.

During the test drive, focus on how the car performs in different driving conditions, such as acceleration, braking and handling. Pay attention to the vehicle’s comfort and visibility. These drives are designed to showcase the car’s performance and help you confirm if it meets your expectations and needs.

Use the manufacturer's suggested retail price (MSRP), invoice price and fair market value to understand the vehicle’s worth and negotiate effectively. Conduct negotiations via email to avoid the pressure of face-to-face discussions. Contact multiple dealers to obtain competitive bids and use these to your advantage. When you receive offers, leverage them against each other to secure the best price.

All deal components, including the final price, any add-ons and terms of sale, should be documented in writing. This prevents misunderstandings and ensures an agreed-upon transaction.

When evaluating trade-in options, you’re essentially exchanging your current vehicle as part of the payment for a new car. This can reduce the amount you need to finance, so you’ll want to get the highest possible trade-in for your old vehicle.

To get the best trade-in value, gather quotes from multiple sources, including dealerships, online buyers like CarMax and Carvana and private sales. Reviewing these offers will help determine a fair market value for your vehicle and give you negotiating power. Present the highest offer to other potential buyers to secure a more favorable trade-in value.

Additionally, consider your financing options. Although dealership financing is convenient, it may not always offer the most competitive rates. Comparing dealership offers with pre-approved loans from banks or credit unions could result in better terms. Dealerships make money in financing, so use your pre-approved loan APR as leverage to negotiate lower interest rates.

If you’re buying a car from a private seller, you’ll need to handle the trade-in and financing independently, making sure all aspects of the transaction align with your financial goals.

Once you’ve negotiated the price, it's time to complete the purchase and take delivery. Gather all necessary paperwork, including the bill of sale, title, registration and any loan documents. Carefully review each document before signing to ensure accuracy and completeness. Consider add-ons like extended warranties and gap insurance to protect your investment, and evaluate these options to decide if they meet your needs.

If you’re trading in your old vehicle, finalize the trade-in process by completing a final appraisal to receive the correct value agreed upon during negotiations.

For delivery, you have the choice between home delivery and dealership pickup. Many dealerships now provide home delivery, making it straightforward to buy a car online and have it delivered to your doorstep. To avoid surprises, be sure to understand the delivery process and any associated costs before sealing the deal.

After purchasing your car, promptly complete the vehicle registration by visiting your nearest Department of Motor Vehicles (DMV) office or checking their website for specific registration requirements and timelines. You'll also need to secure the appropriate insurance coverage for your new car. Shop around for the best car insurance to fit your needs and budget, especially if you’re buying car insurance for the first time.

Regular maintenance keeps your car running smoothly and prolongs its lifespan. Follow the manufacturer's recommended maintenance schedule and find a trusted mechanic for routine car repairs and checks. Understand your vehicle's warranty coverage to know what repairs and services are included. Remember to personalize your car's settings and learn about its features to fully enjoy your new purchase.