How does car buying online work?
The term “online car buying” is actually a bit of a misnomer – there is no way to literally purchase a car online today.
At least not in the way we normally imagine with books, shoes, plane tickets, etc where you visit a “shopping cart” and click “Buy Now.”
In the past 10 years there have, however, been some big improvements in the way people research cars online and find dealers before making a purchase. Sites like Edmunds.com, Kelley Blue Book, Consumer Reports, etc are all great resources.
But after researching and locating dealers (by filling out a “request a quote” form online), what comes next?
It’s helpful to think of the car buying process as a funnel that gets continually narrowed down. You start by researching what car to buy and finish at the bottom when you buy, with a bunch of steps in between.
Note that (historically) only the first two steps in this process are online. As you’ll see below, this is beginning to change.
It’s also important to remember that requesting a quote online is not the same as getting real offers.
Making the process easier for consumers…
The lower (offline) steps in the funnel make the process more difficult consumers.
Lots of paperwork, esoteric fees and taxes, high pressure sales tactics, and “up sell” attempts from dealers makes the process unpleasant for many consumers.
Leaving a dealership without knowing if you got a good deal is not a great feeling, and this lack of transparency creates a combative atmosphere during negotiations.
Wouldn’t it be great if more information was available to consumers to make an educated purchase from the comfort of their home? They’d need to know…
- What cars were available from each dealer
- The lowest price they were willing to sell the car
It doesn’t seem like too much to ask for right? After all, when you purchase a plane ticket, prices and inventory are presented to you from every airline on one screen – why can’t cars be the same?
The CarWoo! Funnel…
CarWoo! recognized this problem and decided to take it upon ourselves to move the lower steps in the funnel online.
No, you can’t actually click “Buy Now” (most consumers still want to test drive first, and financing is common). But we can certainly take you the rest of the way there.
As you can see, all but the final step in the funnel have moved online.
Contacting all your local dealers, obtaining best offers, and accepting the best one used to be a time consuming manual process, but with the CarWoo! it doesn’t have to be a hassle.
Take CarWoo! for a spin and see if it’s right for you.