Buying a Used Car on the Internet Sight Unseen

Buying a New Computer... Or Car... on the InternetThere are three major price levels: trade-in (or
For over two decades, Dell, Inc. has been wildlywholesale), private party and retail. Trade-in is what
successful at bypassing the traditional stores andone would expect to get from a dealer for one's used
selling computers directly to consumers,car - it is the lowest of the three averages, but it's
custom-assembled according to a selection of options.important to know as a baseline. Private party is what
The promise of convenience and savings, along withone would expect to get if one sells a car to another
Dell's strong company reputation and their backbone ofperson, and retail is what one would pay for that car
customer service have helped ease consumer fearsat a used car dealership.
of buying a relatively expensive product sight unseen.Third Party Vehicle History Reports
Gateway and other computer makers have sinceIn addition to the seller's honest word and availability of
embraced the online medium and are now enjoying aservice records our prudent innovators tap into the
similar success at a varying degree. It won't be longsame third party vehicle history report providers the
before buying a new car online is not going to be muchrest of the used car buyers use. CARFAX and
different than ordering a new computer. SomeExperian's AutoCheck, initially serving the automotive
German manufacturers have already caught on to thisprofessionals only, have been available to the general
emerging trend. A BMW enthusiast, for example, couldpublic for a number of years now. For $24.99
configure and order a new M6 months before itsCARFAX offers 30 days and AutoCheck offers 60
official entry into the US market. He or she could thendays of unlimited vehicle history reports. These provide
track its progress through the manufacturing facilityextensive reporting on the vehicles' recorded history:
online similarly to the way one would track thedate and type of registration and renewal events, as
progress of one's new Dell. However, buying a newwell as checking for recorded incidents, odometer
car online sight unseen is not a very risky proposition.rollbacks, junk, salvage, rebuilt titles, insurance loss, theft,
One knows what one is getting and there is franchiselemon buybacks, etc. Many dealers realize the
dealer and a manufacturer standing behind it.convincing power of stating the recorded facts and
Buying a Used Car on the Internet - a New Breed ofnow offer free vehicle history reports for the cars
Shoppersthey sell.
What about the used car market online? How canCar Inspections
consumers quantify the risk they are taking buying aIndependent vehicle appraisal/inspection services with
used car sight unseen to make sure it is justified byonline presence have also seen a boost in their
the savings of such purchase?business. For $99.95, CARCHEX offers to give any
Historically, conventional used car buyers have beenautomobile a 155-point pre-purchase auto inspection
able to kick its tires, take it for a spin, and haggle overalmost anywhere in the USA. Not too high a price for
the asking price of the car they like at their local dealerpeace of mind, especially if it can save one from
since the invention of the automobile. Because of thehaving to deal with surprise repairs. For half of this
internet, a considerable number of these "conventional"amount, one can find a mechanic in the local directory
used car buyers have found a myriad of ways towho can check out the car and even take it for a test
harness the power of the ever expanding onlinedrive on one's behalf and then fax a detailed report.
automotive resources and tools available at theirNevertheless, some of the more thrifty buyers have
disposal to make informed buying decisions.found ways to save themselves the nominal fees
It is from those online savvy buyers that a new breedmechanics charge without depriving themselves of the
has emerged - those who buy their used cars online,peace of mind of a pre-sale inspection. Say, I live in
sight unseen. Although they represent a relatively smallBoston and happened to find a 1974 BMW 2002tii that
portion of the used car buyers, these brave souls seeI really wanted all the way in San Diego. Now, I would
an unmatched advantage and find ways to minimizedefinitely want the car inspected prior to buying it. My
the risks. But what's in it for them, one might ask?thrifty side, however, wants to avoid the $150 fee a
Simple, actually: selection and price. The internet offerslocal company would charge me to inspect the vehicle.
easy access to a vast selection of vehicles worldwideThe solution? I would ask a fellow member of the
- online car portals, classifieds, conventional dealersBMW enthusiast community who lives in San Diego to
with online presence and pure online-only outfits, onlinetake a look at the car for me. There are plenty of
used car brokers, to name but a few. Since most ofBMW forum members that would be more than
them are looking for a specific vehicle, their chance ofhappy to offer their time and expertise to a fellow
finding "the one" is far greater online compared to theeast coast bimmerphile in need.
confines of their local area.Shipping
Needless to say, virtually all of them are looking for aThere is a sea of car shipping companies that would
bargain. Our brave souls take risks, but these aregladly bring our pioneers their newly acquired vehicles
justified, at least in their eyes, because of the savingshome at a reasonable price. One example,
they realize by utilizing the online channel. How do theyDependable Auto Shippers operate a fleet of
do it? They, too, are well-armed with the online toolsstate-of-the-art, satellite tracked vehicle shipping
they need to make intelligent buying decisions. Here istransporters, which allow one to track one's car while
how these online tools help them through theit's on its way much like one would track a package.
decision-making and buying steps of the process.Yet, a healthy number of this new breed of used cars
Fair Market Valuebuyers opt for driving their new purchase home on
Determining whether a particular car is a bargain is atheir own instead. It's cheaper, it's faster, and
function of understanding its fair market value given itsadmittedly, it's much more exciting. Sellers specializing in
condition in the context of the current supply andonline sales of this kind have also adapted to
demand. For the non-economists, of course, there areaccommodate the demands of this new kind of used
a number of excellent online market valuation sourcescar buyer. Airport pickups for our weary yet eager
available. Kelley Blue Book, NADAGuides, are some ofbuyers are more or less industry standard, these days.
the most widely used car pricing providers. They allSellers specializing exclusively in online sales, providing
base estimates on a large number of recordeda hot meal for their 'guests' at the family table before
transactions and provide appraisal adjustments for thethey depart on their voyage home, is not unheard of.
year, make, model, mileage, options, condition and evenAlthough buying a used car online sight unseen is not
local market trends. As their appraisal algorithms differfor the faint of heart, it is a growing phenomenon,
slightly from each other, the estimates may vary, sowhich if executed carefully, could be a very rewarding
checking more than one source is recommended.experience for all parties involved.