Best Online Car Buying Sites

Online car buying sites either show inventory from a single dealer (e.g., DriveTime, Carvana) or serve as a marketplace that shows cars for sale from multiple dealers and private-party sellers (e.g., CarGurus). Buyers can research vehicles, view actual inventory, apply for financing and complete the entire vehicle purchase through the website (or app).

Once you purchase a vehicle, you’ll choose between home delivery or picking the vehicle up from a local hub or dealership. Delivery timelines vary, but some companies offer tracking updates.

When the car arrives, you’ll inspect the vehicle, sign final paperwork and confirm the car matches the online listing. Some online car buying companies also provide a limited return window, giving buyers a few days to test-drive the vehicle and decide whether to keep it.

In many cases, visiting a dealership in person allows for some room to haggle for a lower price — so while you may save time and energy shopping for a car online, you might not save money. Many online car buying sites won’t let you negotiate car prices, unfortunately. Sites that connect you with a private seller typically allow for more negotiation room than those that are associated with dealerships.

Make sure to research the site’s rules and policies as well as the fair market value of the car you're looking to buy (based on its age, condition, etc.) before assuming you can or need to negotiate the price.

Many online sellers charge shipping and delivery fees separately from the price of the vehicle — make sure to ask about any additional fees so you can see the full financial picture.

How online car financing works

Online car buying sites allow you to apply for financing directly through the platform. You can typically get prequalified in minutes after providing basic personal and financial information.

Online car buying companies either offer in-house financing or they will connect buyers with outside lenders, similar to an in-person car buying experience. Your loan offers will vary based on your credit score, income, down payment and the vehicle you choose.

Many sites let buyers upload documents electronically and complete loan paperwork online before delivery or pickup. In some cases, buyers may need to provide proof of insurance before the vehicle is released.

How to know if you're getting a fair price online

The main advantage of shopping for a car online is the ability to quickly compare prices across multiple sites. However, picking the car with the lowest sticker price doesn’t always mean you’re getting the best deal.

Refer to online pricing tools such as Kelley Blue Book, Edmunds True Market Value and TrueCar to determine whether a vehicle is fairly priced.

To cross-reference a listing price, look up the exact make, model, trim level, mileage and condition of the vehicle using at least two pricing tools. Pay attention to whether the car has features or upgrades that could affect its value.

A “fair price” is a listing priced below or near the average market value for comparable vehicles in your area. Keep in mind that taxes, registration costs, delivery fees and optional add-ons can increase the total purchase price. So, always make sure to compare the out-the-door price, not just the listing price.

It’s always important to exercise caution when shopping online. As with any online purchase, avoid online car scams by looking for appropriate accreditations or certifications. Check out customer reviews online, and read through any return policies. The right online car dealer for you has ideal financing options and policies regarding auto warranties.

To find the perfect car at a great price, consider the following:

• Inventory: How many cars does the site have listed? Does it specialize in certain types of vehicles (e.g., new, used, certified pre-owned, classic)?
• Pricing: Does the company offer competitive prices and tools to help you assess the car's value? Look for sites with price comparisons, history reports and market value estimations.
• Financing options: Does the site offer financing or connect you with outside lenders?
• Inspections: Does the company perform multipoint inspections on its inventory to ensure it is selling high-quality vehicles?
• User experience: Is the site easy to navigate? Are the search filters helpful?
• Customer reviews: What do customers say about their experiences?
• Additional features: Are there any available extras, like vehicle history reports, warranty options or home delivery?

Tips for using online car buying sites

1. Compare prices, features and reviews across multiple sites.
2. Determine how much you can afford before you start shopping.
3. Knowing your credit score will help you get preapproved for financing and secure the best rates.
4. Pay attention to fees, warranty terms and return policies.
5. Be cautious of deals that seem too good to be true, and always verify the seller's identity.

Pros and cons of buying a car online

Buying a car online can be much more convenient than shopping at a traditional dealership, and you can research and compare vehicles without pressure from a sales associate. Make sure you keep an eye out for added fees or additional costs, though, so you get the right car for the right price.

Whether you’re shopping for a new car or a used one, knowing the right questions to ask can help eliminate any concerns you have about the vehicle you plan to purchase. If you can’t find specific information about a car online, it’s always a good idea to first ask the dealership or individual seller, especially if the car you want to buy is used.

Questions to ask when buying a used car

When buying a used car, always ask the buyer questions about the service history, previous owners and past repairs. Having this information upfront gives you a better idea of how the car has been maintained and the likelihood of future problems.

1. Why are you selling the car? This is a good question to ask if you’re dealing with an individual seller rather than a dealership. This is one of many questions that will help you get a better understanding of the car’s overall health.
2. Has this car been in an accident? The best car buying websites run a vehicle history check to prevent vehicles that have been in accidents from being sold on the site. If a vehicle has been in an accident, it’s a major red flag.
3. Is the car under warranty? It's helpful to know if a car is still under warranty because it can help cover costs if your vehicle breaks down. Depending on its age and mileage, a used car may have passed out of its coverage period.
4. Do service records prove that the maintenance is up to date? This gives you a better idea of the condition of the car. If service records are available, that’s a good sign. Make sure to review them carefully. If they aren’t readily available, that might mean the car hasn’t received proper service in the past.
5. Would anything stop me from taking the car on a long road trip? This is another question that tells you more about the car’s condition and lets you know what might need to be fixed — which gives you a better idea of the true cost of the car. Features like the heater, air conditioner, turn signals, lights and audio system should all be working.
6. What is the Kelley Blue Book value of the car? Kelley Blue Book lists the value of used vehicles as well as new cars. Estimates are based on private party value, trade-in value and certified pre-owned (CPO) value, among other factors. It’s a good idea to ask what the KBB estimated value is, even if you already know.

Questions to ask when buying a new car

New cars don’t have an extensive history that you need to know about; however, there are still a few questions you should be asking. It’s easy to get caught up in the excitement of buying a new car online or in person and forget to ask the right questions. Make sure you know how to best take care of your car and that it fits your current needs.

Consider it a red flag if the seller can’t or won’t provide answers about any new cars on the lot.

1. Are there any additional fees? Many online sellers charge shipping and delivery fees separately from the price of the vehicle. Make sure to ask about additional fees so you can see the full financial picture.
2. What do repairs typically look like for this make and model? Sometimes it can be hard to get an answer on this one, so it might help to look at other user reviews online for answers. Look for patterns in repairs and factor these into your budget.
3. What’s the gas mileage? It’s important to know what kind of gas mileage a car gets as you’re budgeting for monthly payments. Many of the better sites provide this information before you have to ask for it. Refer to original manufacturer information to get mileage figures.
4. Does this vehicle have four-wheel drive? All-wheel drive (AWD) and four-wheel drive (4WD) typically cost more and require more maintenance than two-wheel-drive (2WD) vehicles. If this is important to you, make sure to ask about it.
5. What does the warranty on this car cover? If something goes wrong with your new car through no fault of your own, it’s always comforting to know you can repair it at a low price. But warranties don’t cover everything, so it’s important to know what yours does cover.
6. Is it possible to hold the vehicle? Some car dealers will put a hold on the vehicle for you while you decide if you really want to buy. Holds can range from 24 hours up to a week. It’s better to take time and think over a big decision like buying a car than rushing into it.