Why Car Buyers Are Ditching Dealerships For Online Sales
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- Опубликовано: 14 июн 2024
- Many car buyers are moving away from traditional dealerships in favor of the internet. A new crop of online services promises price transparency, short transactions, easy financing, vehicle delivery and even the ability to return cars if it doesn’t work out. These online-only services are growing quickly, but selling cars online is remarkably complex.
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Why Car Buyers Are Ditching Dealerships For Online Sales 
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My previous experience with Honda, feeling intimidated by the salespeople at the dealership, having them try to sell me on additional features that I couldn’t afford right out of college, dealing with their financing department, etc. The whole thing took multiple trips to the dealership, had to bring a friend who was a lawyer with me just to help so I wouldn’t feel like they could cheat me.
Flash forward to a 100% online purchase of a Tesla, only wanted to go to the showroom for a test drive beforehand and even when there they didn’t push a sale on me. Ordered online, got a text/email when it was ready, and picked it up. Guy just had to show me how to use it. Nothing being up-charged, the price was the price. I’ll never go back to a traditional dealership again.
Must be nice being able to afford that let alone a car. I had a friend screw me because he found out his car was worth 2 grand more then what he promised to sell it too me. He bought a truck he couldn’t afford and broke his promise as my friend. When I turned 18 2016 I had nobody literally and I messed up quite a bit of my credit so now I can’t get any loans nothing pretty much to do with credit
Cant compare Tesla with Honda. Premium brand vs regular brand.
@@MrMannyhw A model 3 is cheaper than a Camery now. Cheaper to run, cheaper to fuel, and an amazing longevity and reliability and resale is highest of any car.
You just pay more on the front end and less on the backend.
@@MrMannyhw its the process . It would be cheaper for Honda to do it the Tesla way.
wow that sounds amazing.
We are sick of dealers scams!! Even after having a fully agreed on price, my mom took 4 hours to do the paperwork for a cash buy. I would have walked out. Thanks Toyota!
You have to realize Toyota doesn’t actually manage American or foreign dealerships in general directly outside of Japan. Greedy salespeople and managers run them. Toyota employees in Japan would always provide the best customer service.
That’s your fault for being stupid. Never say your paying cash. Just wait for the first bill and pay it all off completely with zero interest.
Buying a car from a dealership already feels as obsolete as buying a car that has a tailpipe
@@jimjam36695
The tailpipe is the covert drain on my RV. No since is hauling around that stuff. Tailgaters get free lemonade 😈
@@trigganometry168 Yes, sometimes you can get a better deal by agreeing to finance because they either get extra money from the financing company, or just have a target number to reach. An extra grand or whatever you get off the price is worth a month of interest to get the bill and pay it off if you have the cash now. I've never seen an auto loan with a prepayment penalty.
I personally HATE stealerships. I would do ANYTHING to put them out of business for the rest of eternity.
Don't buy a car, that'll help.
How many dealerships have you had to deal with?
@@pholland8353 Enough of them to know that they exist solely as an artifact of an obsolete system of distribution, that they use CRM tools to maximize the "touch points" that they make with me, and that their primary mission in life is to extract as much money out of me as they possibly can.
@@lashlarue7924 how many? You didn’t answer the question.
@@pholland8353 What does it matter if it's been 2 times or 22 times? It sound like it wasn't a good experience. I've been to a dealership at least half a dozen times, some were better than others but I'd rather forgo the process all together.
I'm 100% willing to pay more for a car just to not have to use a dealership.
I will drive my car to the ground before walking into a dealership. I had many horrible experiences and they still call me even after buying a new car a few years ago.
Same..the other day , I didn't take a car even if I loved it and got qualified for it just because I didn't want to give the dealership a win (I know they will sell it to someone else, but still ..)
Um, why!
Considering the dealer you are avoiding may likely be selling online would you be paying more for less services like a test drive?
I, am not, and I don't think I'm alone here. I actually want that price premium that's tacked on because of dealership infrastructure lessened. I don't think that's unreasonable.
How about instead of going from an in person middleman to online middleman, we just order the car directly from the manufacturer?
Tesla does that, you can customize and order your car online, but some states are against that.
Dealer networks are protected by state laws in nearly every state. It sucks for the consumer but it lines the pockets of the dealers.
No…the whole point of the dealer network is to make pricing competitive. If the manufacturer set pricing, you would never know if you could get a cheaper price. Maybe that doesn’t matter to most but it does not me…
@@1bigboy500 are the manufacturers not competing amongst themselves? dealers add cost rather than reduce them. if honda is expensive go get a toyota.
@@1bigboy500 so you think car dealerships buy cars from a manufacturer then sell it at a loss to you? You think that somehow you get a better deal through a middle man than if you just bought it off the manufacturer like the middle man does?
Going to the dealer to buy a car takes the whole goddamn day.
You buy a car with less than one day of research?
@@baris3985 you missed his point lmao
For something you are going to spend thousands of hours in and spend years paying for, it's worth spending some time getting it right.
@@kevmorris3000 Haggling between a sales person and the floor manager isn't "getting it right". It's being worn down by attrition.
You may not like those who sell you your cars.
But remember, they do have better reputation than the *_Politicians_*_ !_
My last 3 car purchases were online after a test drive of a similar model at a dealer or “retail” outlet. I cant remember the last time that a salesperson knew anything about a vehicle model of my choosing that I hadn’t learned from the internet already. Once I see and drive a vehicle, be it at a Tesla store, or a friend’s driveway, I’m ready to configure, order and pay online. BTW I am 64 years old so this not not just a “millennial thing”.
So you wasted at least 3 sales agents time by pretending to be a customer. I guarantee you that those sales agents could have sold the car you’re looking for at same price or lower. If you look at your purchase contract, who is the seller? You will be surprised that it might be your local dealership. All car purchases must go through franchise dealership and cannot purchase a car through online company unless it’s titled as a used car. When the purchaser signs the purchase contract, DMV paperwork, and etc. all the paperwork comes back to the original selling dealership.
Carvana sells overpriced cars. Vending machine for cars is a gimmick. You're paying for that glass tower lol🤣
Buying a car online you must have good credit or a lot of money down,
@@punchingcrow5486 When you sit down and compare Carvana with dealerships on used cars Carvana is almost always a better deal. Dealer fees, GAP insurance, etc. all add up. We went to 3 separate dealerships when we were looking for a CX-5 once everything was said and done Carvana beat the best offer we got by $3k and we got a car with 15Kmiles vs 36Kmiles. Vending machine thing is a gimmick, wife thought it was neat though.
I don't understand why people are hating in the replies.
Answer: Dealers are unnecessary and pricey middlemen who make buying a car more expensive and unpleasant.
End of story.
great idea! just buy from Tesla on line and pay FULL PRICE!!!
Indeed!
@@jackjohnson9106 ok I will 👍🏻
Yes!!!! They can get other jobs. All those dam middleman.
We’re tired of getting hosed …..that’s why!
You know you like getting hosed baby girl, stop playin
@@Bigtrunkdeeproots Creep
We have bought Tesla's recently and love the lack of the stealership experience. I HATE HATE HATE that - its no wonder people will use any service that gets them out of that horrific experience.
It must be an American thing just to pay whatever and never negotiate
@@franklatin2411 you will spend a whole day trying to negotiate a car price at the dealership my friend and In America time is money, we have other things to do.
@@masterchief12331 I only buy new cars, with a warranty. That's just me. Older cars, might need a test drive. But I wouldn't buy a used car that wasn't CPO or didn't have some sort of warranty.
@@masterchief12331 no, you aren't wrong. But our philosophy on vehicles is probably different. I wanted a new F150 crewcab 4x4. I imagine they all drive pretty much the same. I needed an extended warranty and maintenance program to cover the vehicle the duration of my loan. And I wanted a certain color and a few options.
Past that. No, I want my truck, I want to go now. Here's my trade in,hers my info, what do you need signed. If it starts and runs and does everything it needs to do right, good to go. If not. It has a warranty. I am no longer willing to waste my time at a dealership. There is no reason I need to be there more than 2 hours. I buy mass produced vehicles, I really don't need a test drive.
I drive a semintruck for a living, pretty much everything I could buy would be better or easier to operate.
@@steveawesome9538 I share the same sentiment. A car is a tool that does what I need it to as reliably and frictionlessly as possible. Biggest factor for me is reliability when choosing between brands. Comfort and handling both have easy aftermarket solutions that run circles around OEM options, and can be customized to your liking.
I bought my Tesla online. I don’t miss the Salesman trying to figure out how to get as much money from me as possible.
Right? It's so slimy and predatory. I'll either buy a cash car (not from a dealership) or through online means.
Tesla sells factory direct anyway, so this would be logical.
Would you buy a pre-owned car online based on virtual details?
Would you buy a car that you never took a test drive in?
@@NotShowingOff depends on the reputation of the company and the return process.
@@BobTheBob647 we aren’t talking about a TV
I like the Tesla system. You can still go to their showroom to do the touch, feel and sit in it part with no purchase pressure. When you are ready, go home and order it.
"Less than 1% of consumers enjoy the dealership experience" - well then, that explains it.
@Ziplokk Good try troll.
Dealerships aren't going anywhere. Manufacturers need to efficiently move large numbers of cars. The price of these cars is somewhat flexible since there is competition from other cars in the same class that may be better, the same, or worse than what that manufacturer has to offer.
@@sanjaygandhi7962 Good joke.
@@sanjaygandhi7962 with the Car market right now there is no leeway. You pay full price or you can kick rocks.
nodoby, like nobody enjoys spending, but everybody enjoys bragging and having.
Bought my first car (a used car) online. My parents bought their first used car through a dealership, they said the online experience was 100 times better. Never going back to a dealership, whether I'm buying new or used.
So you just laid down and accepted their price?
@@Immacu1ate yup ig so
So you are happy to pay 4k more because its online. You are a baller.
I love how in the beginning of the video it says that some people are doing their research online. Really, you really find that surprising?
Lol. 20 yrs + of this and wow you think we are just now doing this? Guess what, derp? We were doing this in the late 90s
😂😂😂😂
This is boomer tv
@Jee Vang It's called sarcasm, learn it
Most customers probably know more about the car they want then the salesmen.
You should have included that traditional car dealerships are initially mafia style monopolies. What if you had to buy cereal not at Safeway but at individual stores? You have to go to the Cheerios store and then over to the Frosted Flakes store.
Carmax 'Method' is not bad. Fixed commission. No salesman playing tricks. Their cars are overpriced thou.
I like CarMax.
True, the trade off is time for cost
Used to sell at Carmax…trust me….you’re getting screwed…that’s why I quit. Lot of turnover in sales…
They just bought my daughters camry for $3,000 more than she paid for it new last year and it was in a wreck. Way more than any local dealer, carvana and vroom offered.
And they have a return policy and since they are a big company they have to honor warranties and fix issues of the car
One thing I notice is dealerships almost always lie about the trim they sell. I went to buy a Prius and wanted a higher level trim. Every time I saw the car in person, it was a lower level base model trim, despite being listed as a higher end trim.
Edit: for some reason people think I didn't know the trim level of the car. I did. I researched all the trims. That's how I knew they were lying. And since I wanted heated seats only available on the higher level trim it was painfully obvious. I'm not sure why people are saying that I should have done my research first, I did, the whole point is that you shouldn't be lying, and I'm not sure why so many people are defending dealers lying about their cars, if we switch this to the medical industry or the financial industry you guys would freak out yet for a car dealership you're willing to accept that the dealer should lie to you? With no consequence? Please, give that level of belief to the financial industry and stop complaining about how big banks and the rich screw you over. No? Then why are you willing to accept it in cars? Why not the same outrage you have when big banks lie and screw the financial system?
True but you should do your part which is to inspect the car before buying . A sucker is born everyday
@@leea3531 That still doesn't excuse dealers for misrepresenting what they're selling.
A Prius...That explains it LOL
@@poogan1239 Imagine thinking a prius is cool if it has a body kit..
@@SolOInvictus if the window sticker is different than the car they are selling that is ILLEGAL. SUE THEIR ASS. Get your money
Buying a car online may not be the cheapest way at times. But theres a reason why more and more people are doing it. Dealing with car salespeople are one of the worst dreaded experience in life. Take note dealerships, take note. Before its too late
who the hell wants to deal with a sketchy car dealer trying to make you pay more for warranty packages and getting u to sign a 6 percent interest loan.... am I right?
Good comment.
Or buy from the used market , do some research find what you like and away you go for a fraction of the cost
I always buy used. All three cars i've owned have been used from private sales. I work on cars so i'm pretty comfortable with it. Some people like new though; so that cant be the only solution for everyone nah mean? Not everyone is the same as us. Theres also services like carvana that sell used cars online and do the whole checking process for extra money for people who aernt car friendly.
You forgot the biggest reason to avoid dealerships, many lack integrity. Dealers often take advantage of the fact that they sell cars all the time whereas you rarely purchase one and they exploit this power/information imbalance. I have stopped using dealers and use a buying group just so I don't need to have a wash after visiting the dealership!
The act of going to the dealership and dealing with that BS is more unpopular than congress - which is always low.
🤣😂😅👏🏽👏🏽👏🏽
great idea! just buy from Tesla on line and pay FULL PRICE!!!
@@jackjohnson9106 That’s what I did. Cash. No time for dealerships and their craziness. I can always get money. Can’t get time back.
@@jackjohnson9106 dealerships increase the list price and then give you discount if you haggle well . it’s just a sales trick to make you believe that you got a good deal . this happens in other retail industries .
moreover if you aren’t good at negotiating then you will be chump paying extra
@@jackjohnson9106 When you buy from a dealership, you pay full price, plus the dealership fee, plus the salesman's commission.
You may hate Elon Musk, but you got to thank him for the invention and kick starting online car purchase revolution
And also, Elon is actually more liked than the Blue guy.
The people who hate him are just jealous of the success he has. They even act as though highly successful people don't have many failures behind them.
Even tried Mocking Elon for a Hyperloop that was only suggested ON PAPER. Never planned to build one.
And the cheap EV prices! Do you think Ford would be selling their new F-150 EV for $39k if Tesla didn't set such a low price at $40k for their Cybertrukk? No way in hell!
@@joeking433
>EV
>Cheap
Pick one.
@@snafu1635 Huh?
Bought my camry from Carvana and they shipped it to my house like a freaking Amazon package lol. The whole experience was outstanding, also my first time buying from a dealer online.
Congrats on ur car...please let me know the details like price ,model year and miles
You cant go wrong when purchase a honda or toyota. Those cars are built like a Nokia 3310
Why you have to use amazon as a reference? Others ship too. Just more , nonstop free publicity
Caravana is much more expensive than buying elsewhere though
They are still a middle man rip off artist...They are no better than a car dealership...only difference is you didn't have to meet in person.
Ford dealers charges $20,000 markup for Mach-e right now, let that sink in
Just one more albatross the legacy OEMs have to overcome. Most are doomed IMO
Yep, that's why I'm NOT buying one. I wish Tesla still had the EV tax credit, I'd buy a Model Y today
You don’t think Tesla is overcharging for new/used vehicles. Just wait till you get the price you want…may take a couple of years with chip shortage though
@@1bigboy500 Buyers can always buy what is available on their lot. Tesla has inventory here and there, no?
@@MrMannyhw Sure can but sometimes that’s the issue. I don’t feel you should have to settle for something that doesn’t have exactly what you want that you will spend so much money on. Note: The only reason Tesla isn’t playing by the current law for manufacturers because the Fed Gov REALLY likes them. 🤣
My husband and I just had our first experience with online car buying; we used Carvana. Got a pre-owned 2019 Jetta. The transaction was smooth and we are happy with the terms of their financing. Due to Covid, we did have to wait an extra week for delivery than the date we expected at signing but they communicated well with us, assured us what was happening with clarity and efficiency. Delivery itself was great! The driver was very knowledgeable and the car looked perfect. We’re about 2-3 months in and we’re very happy still. Haven’t found anything to criticize really. It was easy in nearly every way compared to going to the local dealer to verbally spar at prices with a coked up 30-something a fake smile and the hunger for the sale. Our recent Carvana experience was like the anti that. Super easy and we didn’t encounter any hidden costs or anything sus.
No way buying an us3d car without independent inspection
You bought a Volks sight unseen? It'll be giving you problems in 3 years or less.
The last VW Jetta we bought is still going strong at 200k and we’re super happy with the ease of ownership so far, but that being said, we take care of our cars. So many say this over the years but in our experience, we’ve had no issues other than minor issues that I feel any car could potentially have.
Yeah and your a sucker
Yeah and your a sucker
Lol I wanted a Jeep Grand Cherokee, lightly used with low mileage and premium sound system, but every car salesperson were pushing a Lexus or a Kia and I just bought my keep on Carvana, they didn’t push me to get another car that I didn’t like. I really like Carvana too. They did a great job
The sales person is pushing for more reliable cars. Don’t get me wrong the GC can be reliable if it was built right at the factory.
@@jameschen8 Doubt it. They’re probably pushing for cars they have the most inventory on so they could get those cars out sooner.
C bought 🇺🇸 but here's the catch, none of his money getting dumbed into her until Plan Z Agenda ends capish 👌🏽
Haha your a sucker
@@disneyfan9099 Ohh.
3rd paid dealership salesperson who is brain-dead.
I’ve purchased from Carvana. Hands down the easiest car buying experience I’ve ever had. No complaints at all. I plan on using them for my next car purchase as well.
Then you should plan on an array of issues. You got lucky. Many reviews of them never sending title to customers and taking forever to send car, financing issues etc. you can’t even test drive the vehicle to make sure it’s what you want and that it’s in mint condition.
I bought a new Tesla model 3 on Tesla's website at the end of last year. Excellent experience. No trying to negotiate price with a stranger, everything was digital from selecting the car options to applying for a loan so I did it all from home, and no dealership mark up. The only time I had to go to the service center was to pick up the car. Thankfully I didn't need the car immediately so I could wait 2 months for it to arrive although I know now that's not the case for new orders.
When you buy the car for the $$$ seller is asking and there's no negotiations - you just been grossed out!
@@jackjohnson9106 I worked in the automotive business for 20 years 10 of those working in dealer networks for a major OEM and I can tell you that the direct sales model especially of new vehicles is better for the customers.
Now more customers are starting to buy directly from the manufacturer at least here in the US the old sales model is starting to hurt manufacturers by making them less competitive. Laws were put in place years ago on many states to prevent manufactured to sell directly to customers because the dealers couldn't compete since the manufacturers could offer better prices.
In order to generate more sales manufacturers have low profit margins because the middle man (the dealer) had to make a profit and depending on the dealer and the customer's negotiation skills a vehicle might end up costing the customer 5 to 10 thousand dollars more than the price a manufacturer could have sold it to a customer.
When a manufacturer sales directly, of course they're going to make a profit but cutting the middleman saves the customer thousands of dollars. When you negotiate the price at the dealer even when you think you got a great deal you are still paying more than if you had purchased it directly from the manufacturer. With direct sales you don't have to negotiate with the middleman and if you feel like the price is too high you can just go somewhere else. The dealership has to make money and that money has to come from somewhere and that somewhere is the customer.
When I purchased my last car, I arrived at the delivery Center at 10:00 a.m. by 10:15 I was driving out of the lot with my brand new car.
I might be wrong, I guess time will tell. At the end of the day customers are going to pick a winner.
Just my opinion.
@@acolon8999 No doubt buying from the manufacturer would be cheaper for the customer. For a rarely purchased item like a vehicle, I don't see the problem. The dealerships will still make money from service. For some reason this is outlawed in some areas. No kidding dealers will make less. I would understand that you couldn't test drive from a dealer without a down payment, etc. Maybe have vehicles available to rent for a test drive (to make sure you like how it rides, seats are comfortable, sits at an appropriate height (Corvette/Miata sounds cool, but many older folks can't get in/out).
Check in for maintenance
Congratulations to you
Just bought a used car from a Chevy dealership in Miami. Worst buying experience of my life. Never again.
Its Miami, so of course it was horrible and I say this a fellow 305
I bought a car on carvana about 2 weeks ago on my phone while having dinner. The first car I got I drove around and just didn’t really like so I went back to carvana and got another vehicle no problem no questions asked. The car gets delivered and they pick up your trade in that same day. The vehicles are all clean title, you can get your own financing and you don’t have to deal with sleazy salesmen. I live in Miami Florida and most cars are either Rebuilt title, beat up, and as soon as you mention self finance the car is suddenly sold lol!
that's a clear definition of a completely f--ed up dinner!
@@jackjohnson9106 no it was a great dinner. What I’m saying is the buying experience is quick.
Yes dealerships don’t want you to pay cash for a car. They want to sell you something that they can finance
@@Sensoredcensored I should have been more clear. When I said self financing I meant I went to my credit union and got an exceptional rate instead of going through their financing and paying 8-10% even with my excellent credit history. Going to the dealership is an overall horrible experience. They will try to get you any way they can.
Yeah but carvanna has a ridiculous makeup just for that personalized experience.
Bought a ford explorer 2016 around 2 years ago, it was supposed to be 24k but ended up being 30k because! i got ripped off for not knowing how bad dealers are in this country. ( first time buying a car in the USA and i had only been in the country for 6 months)
Fast forward to june of this year. I bought a tesla model 3 because we needed a 2nd vehicle. It took me 5 mins. And the price advertised was the price i paid.
I would never visit a dealership again in my life
Yeah but that was because you didn’t know better. Would you really get scammed a 2nd time?
The need to see a car in person increases as the age/mileage of a car increases
Facts!
Tesla cult member , dont agree with you.
also need to spell it for cigarette smoke...
@Yoshi Eggbreak people who dont really understand cars probably don't bother with the driving experience, which I for one don't get at all
Less a thing for new cars with test drive centers.
There are too many experiences with auto dealerships that makes the average consumer prefer not to deal with them at all. You always have this feeling that not only will the personnel want to charge you the highest price they can for each car they sell, but that there are too many hidden variances in the sale process that boosts the costs to the buyer beyond what is reasonable.
The point of a test drive of a new car is: do I like it? Seats, driving position, infotainment, materials. If you don’t mind it, buy the cheapest you can.
Yeah that guy had me scratching my head like a test drive it's very obviously important usually.
@@Toyeboy89 Not always. Someone like me would buy a brand new car without test driving one.
Reminds me of a Family Guy episode where they go to a mattress store and try beds out, once they find one they like they simply ask for the model number and look it up online to buy it, order it while still in the mattress store and have to hurry home so they can be back before it’s delivered at their door via drone 😂
The dealer COVID experience (May 2020)I had for my truck purchase was great….didn’t have a sales person sliming me the whole time, let me test drive solo and the purchase was super chill yet beneficial for me in the end…
cause dealerships are well known as STEALERSHIPS
great idea! just buy from Tesla on line and pay FULL PRICE!!!
Why because it’s a business with a profit in mind ???
@@signrighthere1468 well I don’t want to be ripped off
Buying car online is a scam. They say zero dealership charges but sell their cars 2-4K above the market price
This is the second best comment of the day!
Tells you a lot about how much someone is willing to pay to not deal with dealership bs.
@@asianpower3000you could deal with a private party. Buy from them the. Try to sell for sale price you just paid and people would not be interested till you knocked the price about 30-40%
The Tesla buying experience was painless and amazing versus my past dealer experiences.
@Mark Odessy Where did you hear that?
@Mark Odessy ive had a 2 model 3's a 2019 and a 2021, and they were the two best cars ive owned in 30 years and it litterally took less than 10 minutes to order my car, the bad thing about tesla is not build quality as it has improved loads, but delivery times as it took around 12 weeks to get my 2021 model 3, due to there not being enough cars made and shipping from China to Europe
@Mark Odessy your so full of it
@Mark Odessy bs, once you drive or own a Tesla, you won’t look back to traditional internal combustion engines. Never heard of that high percentage of regret on any of the tesla forums.
@@abritishguy7295 Tesla's have yet to be proven reliable. They already have poor build quality/defects. A Toyota or Honda can go 20 years with no major maintenance. A Tesla will need a new battery within 10 years.
This will be the way my family purchases vehicles in the future! I was taken for over $3,000 the last go around with a sleezball car sales man.
And you will be buying a car online
After my last round of buying a car, I will try to avoid the dealership. Nothing but lies and issues, and they take FOREVER to do anything (it takes at least half your day to purchase a vehicle now). I'll go to the dealership and test drive the vehicle, but not spending a second talking to them about purchasing one. I would never miss dealerships if they went out of business permanently.
Carvana is otherworldly when it comes to ease of use, being consumer friendly, and assisting with any questions or concerns a car-buyer should have. I bought my second car from here after months of searching over 3 states online at dealerships for a car that was affordable, lower mileage, and a newer year, but they all were easily $6,000-$10,000 more than the exact same car with much much less mileage on listed on Carvana. After my Carvana experience, I will almost certainly never buy a car from a dealership and will choose Carvana 100% of the time.
I bought through carvana too and my experience was generally favorable, but they have a lot of logistic issues and their transparency could be better as well. They really aren't doing those 150-point inspections😒.
Their prices are on an average 2-4K higher than the standard in person dealership.
Carvana is trash. Car vending gimmick with expensive prices..
Hahahahaha I just looked up my car (bought with 32k February/21) on Carvana and with 78k for $2000 more than I paid lol
This was my experience as well. Almost pulled the trigger on 2 different deals from dealerships after looking it 2 separate states. In the end Carvana was $3k cheaper and half the mileage. My only complaint was they had not done an oil change on the car like they stated. Flawless experiences otherwise.
The only issue i see with these online retailers is that they sell used vehicles - which means the specific vehicle you are purchasing may have an issue that you don't know about because you did not test drive it. You may have test drove another similar model and trim somewhere, but not this one. Yes, its delivered to your door and you could probably return it in 7 days depending on where you live - but the issue with the vehicle may not show itself in the first 7 days. As these companies grow larger, they become as corporate as can be and profit is in volume and numbers. Your vehicle will get as little TLC as possible during reconditioning to get it out the door. You will eventually find issues with it that are beyond the return period and you will be stuck with it. The idea that you can return it "anytime" in 7 days makes you lazy and you never end up going to a trusted mechanic to get it checked out and test driven until its too late and you're stuck with the car.
Buying a car online is like marrying a girl you've only seen on instagram. A lot of people end up regretting it.
How is this different than any other way of purchasing a used vehicle? None that I can think of whatsoever. Your points are valid on a used purchase to a new purchase argument.
I would want to do a physical overlook myself. I've had new vehicles pitched to me with noticeable defects. It was obvious it was damaged in transport.
Doing your homework before you make your purchase is the key! These online auto sales companies ain't that favorable when it comes to price. Their strategy is use their almost unlimited investment fund to buy up all the acceptable inventory from Craigslist, auctions or other resources, and they jack up the used cars market price. I was looking for a specific car on Craigslist one day, and couple days later it was gone. Then surprisingly, it reappeared again about a week or so, but this time it was under Carvana's title with $4000 above the original owner asking price. WTF!
Car dealerships need to step up their customer service and transparency or risk being pushed out by these online services. Simple as that.
My last vehicle that I bought at a dealership, I parked my van that had major damage from an accident but was drivable in the new car parking area and then walked with my dad to the used car area. It was the last day of the month (which is the best day to go to a dealer). The car salesman ask what we were looking for and came out with the van I was looking for. He quoted me the price. When we went in to do the paperwork he asked if I had a in, trade in. I said yes.When he came back, he tried to raise the price, so I started to get up to leave telling him that wasn't the price he quoted me. he asked me what he could do to make it right and I told him to deduct xx amount, which he did and I bought the van for the blue book price and also got a 5 year warranty with it. You just need to know when the best time to go to the dealer and how to haggle and don't tell them you have a trade in, until after they give you a price. Record it if necessary. Also, have financing available. And as far as insurance is concerned, you can use the company you already have and add the vehicle to it. In my case I was out of state and my dad added the vehicle to his insurance temporarily. So, it's all in how you play the game with them and just say no to their add-ons. Also, Carvana has been know to sell vehicles that were stolen, so beware of buying cars online.
Test drives are important to me to make sure that I like the driving characteristics and interior functionality of the vehicle I’m considering purchasing. I’m an enthusiast though and I understand not everyone necessarily cares about those things but rather a reliable source from A to B.
Yeah same. But we’re the exception not the rule. Cars are just appliances for most people.
Tesla offers test drives too.
Cut out the middle man and save thousands!
great idea! just buy from Tesla on line and pay FULL PRICE!!!
@@jackjohnson9106 You pay full price at the dealership as well. They just mark a $40k car up to $48k then sell it with $6k of "incentives". They pocket $2k and the buyer spends more than they'd need to.
Even if manufacturers structure this as $48k cars that are sold for $43k car and offer the dealers volume incentives, ultimately the result is the same. Buyers end up paying more for some greasy dealership middleman to add cost to the car buying process.
@@jackjohnson9106 If full price (as opposed to MSRP - incentives - haggling) is the market clearing price, I don't see the problem.
Crazy how Tesla solves this issue completely.
Crazy not everyone wants a Tesla.
Tesla has a significant advantage: given that it’s a fully electric vehicle, it doesn’t fall under an archaic state law system known as motor vehicle franchise laws.
If state political leaders elected to to dissolve the current motor vehicle franchise laws, it would thereby level the playing field for all motor vehicle manufacturers, as well as providing consumers greater choice by being able to order a vehicle directly from the manufacturer with direct delivery to the consumer.
@@adnan_velic that’s true. Some people want a worse car and buying experience.
@@johnm2991 problem is that dealerships are some of the top tax generators for states. No way they’re gonna give that up.
@@JoeVirella guys, possibly there are consumers that can not afford a Telsa, but would still like to know their available options.
Some customers have a limited budget and or a limited credit portfolio but need a new vehicle and would like to review all their buying possibilities in person with vehicles on hand to see how they feel, fit and if there are any size limitations and or blind spots that may make the driving of said vehicle an issue or even a safety liability.
As someone who worked at Ford and worked with the guy who developed the test site for online sales back in the early 2000's. I can say it's a tricky thing. Back in the early 2000's , absolutely no one wanted to buy a car online despite the fact we had a site that enabled it. People want to test drive a car, they want to see the car colors in the flesh (computer displayed colors do not represent accurately what the color looks like), same with add ons.
What people do is research online, find out all the details about a car and work out what they want and prices around the place. Then they test drive the car at a dealership, look at the colors etc in the flesh. Can I see them then leaving the dealership to buy online, sure. And that was the problem 20 years ago that the dealerships cry out about, they dont wont time wasters going to their dealership checking out the car, asking them questions to then walk out the door and buy online. It's a tricky issue. Which is why dealers usually revolt when head office of a manufacturer start talking about online sales.
I think it was suggested that if online sales were to happen, dealerships would get a cut somehow. It's the only way to stop dealer ships protesting. And they have a point for the reasons I mentioned above
I can do all the research and inventory search online. But I would still need a test drive to see if the car is comfortable. I didn't get a 2010 Escape because its driver seat had really short cushions that didn't offer the support I needed.
You don't buy a car at the dealership, you inspect a car.
With many consumers it not so much about loving the online car buying experience as how much they HATE the dealership experience. The dealerships continue to earn their poor reputation and drive their own customers away.
I refuse to buy a car online, truth be told it's one of the few things I will never buy online
Missed point. Tesla sells cars completely online. I ordered, got financing, and even my trade in all online. I did not deal with a person until I went and picked up. Y car… even then, it was 6 mins, and I was on the road.
The car buying experience needs to become Amazonized.
Save us daddy Bezos
Maybe new vehicles, literally impossible with used inventory. Way to many X factors
better yet, come in and pay the goddamn price you see is being asked
@@jackjohnson9106 exactly I see so many people here complaining about haggling, just pay the asking price and you won’t have to deal with that 🤔
Why? Just pay the price that is asked for the car at a lot. You Amazon the car buying process and literally thousands if not millions of jobs are eliminated.
If you're buying a brand with a generally good reliability record (Honda and Toyota/Lexus especially), buying online is a no-brainer, in my opinion.
Can you purchase a new Honda completely online?
@@suspicionofdeceit nope, if you want a new car you have to buy in person
@@chudson4500 As a former car salesman you can do the majority of the paperwork like credit application, and pricing online. You show up in person test drive and sign. This assumes your car salesman has a brain and isn't lazy. It helps when you as a buyer know what you want.
@@OneManOnFire that’s what I did when I got my Camry as well as the trade in.
Commission sales is a thing of the past . People don't have the patience to deal with a shady sales man . The real estate market is next .
No it's not
LOL. So you would buy a house without seeing it and asking questions in person?? There is a lot things you can't see and feel online. If you don't care about that then fine, but the walls, the floors, the smell, and other questions you may have and where exactly where the house is located and what type of neighborhood it's in is a huge part of deciding on buying the house. Good luck with that.
@@HiFiPlayer exactly. Not only that. The seller of the house can lie about anything, whereas an agent would abide by the ethic and honesty for his licenses sake
Patience ? Then just buy the car that’s what’s it’s listed for ? What’s too haggle ?
No pre-purchase inspection is insane. Carvana just buys cars from the public and resell them at $4K markup. Just adds inflation to an already inflated market.
If people wanna buy it, then Carvana is clearly not the problem.
You can easily check the vin for vehicle history bro
The first car I bought was online through Carvana, and for what it was, I paid maybe $2k more when buying through them vs. local listings and listing at dealerships, but like they said, it was very transparent and I was done with everything within an hour, and later had my car delivered to my house. Then that car was totaled, and I bought from a Honda dealer, I spent about 4 hours at the Honda dealer that was an hour away from my house. I would much rather buy online next time. It was so much easier
I bought my last 2 cars on Carvana and it was well worth it. The real time pricing, the ease of use of buying and most of the time within 3 days i had my cars.
Great you paid extra 4k for each car. Nice.
@@bayarea2012 no. I saved a day and back forth negotiations and the run around. Cars on their were generally 10-15% cheaper then dealer listed prices. I have no doubt i could've save more at a dealer. But why do i want to give my business to car dealerships who put more people in debt they can handle. Their upfront pricing and time saving require me to do less than 1hr of total work combined for both cars to buy it, and the financing through my own bank. The only thing hated more than the car dealerships are lawyers. I will never buy another used car from a dealership again. Either direct or one of these sites with upfront pricing.
The issue is people go into a dealer not having the financial strength to call the shots, so they have to rely on what lenders the dealer can find (whether it makes them money or even more money). If one goes into a dealer with their loan/payment in hand, the negotiation power is in the hands of the buyer.
that used to be a true statement. However if you walk into a dealership without consenting to finance from them they are more likely to tack on additional service prices. I had experienced that before the pandemic at a Toyota dealership where the advertised price of a Camry Hyrbrid was around 6K or so but when we sat down before I knew it with TTL and "additional" fees I was looking at 10K. I got up and left that place like my life depended on it.
That is not always true, I pay cash, the dealership still trys to screw me over. Then I just leave.
You're better off using their financing then paying it off or refinancing through your own bank or preferably credit union. That way they think they'll get the revenue from the marked up interest rate and not try to increase their profit in another way.
Even before it gets to financing they try to add on features you didn’t ask for to get the price up
@@JetSkiBuyFixPlaySellChannel this has to be the worst erroneous advice I have ever had the displeasure of reading . Better off using their ….I can’t even finish the sentence I threw up
Back in 2019 I bought my 2017 mustang over the phone without ever stepping foot in the dealership or seeing the car in person. I’m in Michigan and the car was in Texas. I sent the dealer all the paperwork in the mail and had a 3rd party company ship the car to me. Nice and smooth process. I love cars but I hate the process of buying them. This is how I plan on buying my cars from now on.
Carvana is legit though. Bought my Prius hassle free AF.
Legit lol
I tried purchasing a vehicle through Carvana recently. As soon as new cars were on the website they were sold, like within minutes. People were even buying the “Coming Soon” cars that didn’t even have a photo! It was a rat race. After a few months of that crap I found my perfect car at a family-owned local dealer and had a great experience. I’ll stick to in person shopping, less competition.
Bought a used car off auction for the first time last week. Got 5k cheaper than what dealer was asking for
Last time I bought a new car from a dealer was 18 years ago, and even then I got quotes from other dealers via the internet, and then went to the dealer closest to me to either get that price, or I'd go to another dealer. Their choice. I got that price. Strange that this all would seem new to some people!
I sold my car to carvana last year. I was in and out in 12 minutes. Literally. I checked. They even paid for my uber ride home. You can't beat that
All these scammers dealers
You think caravana isn’t scamming too ?
They charge extra, to store a car on a lot and hire a bunch of college guys to try and get a chunk of the sale price off of your monthly payments.. its the weakest market to sell cars, and not needed... its a game for them,and we dont want to play games when buying a car. Just give me the car and get a real job.
@@leea3531 yea they are
@@leea3531 they overpricing the cars
@@dertythegrower We all can’t flip burgers bud. You would be out of a job.
Thanks to how Dealers still do business, these On-Line sellers will do well.
great idea! just buy from Tesla on line and pay FULL PRICE!!!
Too bad carvanna and vroom are in crazy debt and haven't turned a profit yet lol
@@jackjohnson9106 Do you negotiate when you buy a TV or your Groceries? If people feel a Tesla is worth the price, then they dont need to haggle.
@@TougeTourGuide Don't be fool. They are STILL ARE A CAR DEALERSHIP AKA Middlemen. Honestly, I don't see the difference at all. Still pricey as freak.
You also get to see more inventory too and color choices. I think I might do my next purchase this way.
Go to the store to test drive and see it in person. Buy it on line later. Same thing with technology and other stuff. In the future brands will have their physical stores more as showrooms than a point of sale, and that's great, since most stores try to push the worst possible deals to their costumers so they can profit more in the end, sadly (yes, there are exceptions, of course, but not many).
If those businesses can do the entire thing on line (including taking your used car back if you're doing a trade in, even if they offer you a subpar repurchase price, like they'd likely do in person anyways) I think that's fantastic. It feels like something more suitable for new models, but it might work with used cars if they iron out issues around people not liking what they buy (maybe lose a predetermined deposit and have a time limit for regrets).
[Quote by Will Clark] *_"I don't know the point of the test drive...it's a brand new car; it's a Honda...."_*
He goes on to say he anticipates there will be *_"nothing wrong with the car"_* and that *_"he can return it in seven days"_* under his State's consumer laws. He also sees no point in experiencing the car in person before purchasing.
Uh huh.
I can think of a bunch of both huge and minor reasons one needs to drive whatever car they're buying. This also means a *proper* test drive---half an hour at least---on all types and conditions of roads and in everything from stop and go traffic to highway cruising. (Different design problems only become evident in certain conditions.)
A few practical reasons to thoroughly experience the car in person first, just off the top of my head:
--I can't get comfortable in these seats;
--What's that annoying.......? [fill in blank with any of dozens of odd *_design flaws_* of any random vehicle. *_Not defects_* ---just things that you either don't like how they sound / feel like / appear / etcetera];
--This steering is too hard / too easy / has no 'road feel'
--Why don't the sun visors go lower? [short person] I can't block the sun from my eyes.
--The brochure said the rear seat room is "x" but it's really tight. Dad will never be able to sit back there.
-- _That's_ how the stereo sounds?! What a piece of crap.
--Are these brakes ever touchy! I hope I can get used to them. I've never experienced such touchy brakes!
--This arm rest is too low. I'll never be able to use it on the long trips we take.
--[on highway] Man, is this ever a lot of road / wind noise. I thought these cars were supposed to be quiet.
--[in cold climates] It sure takes a lot longer for this heater to warm up than our previous car.
I can't begin to grasp how this man thinks. Either he and his wife are the most undiscrimminating, imperceptive car users in history, or he's always previously driven whatever he's about to buy in a different context---like renting one while on holidays.
As someone who's sold cars, the things that dealers do with cars means you absolutely need to test drive a car. But I guess for that dude ignorance is bliss.
I don't see anything wrong with it. I bought a 500 k home across the country without setting a foot inside.
Cause all Honda minivans drive like every other Honda minivans.
After doing some test drive comparisons, whenever you see your worst-place picks on the road, you think the owner is an idiot.
*Going to a dealership is like going to a drug dealer on the corner. **_You know there's nothing but scams and shady deals going on._*
Sometimes when an auto make dealership owner has a lock on a market, where no discounting deals can be made, I can see where shopping online is a good alternative.
Case in point: A friend of mine living in Southern Nevada wanted an upscale SUV, where there were only two dealerships in that region: Las Vegas and Henderson; both owned by the same people. Try as she did, no deal could be done to discount the price of the SUV. So, what did she and her husband do? Did some shopping online and found the upscale SUV they wanted at a San Bernardino (California) dealership, discounted by (US) $10K from what the Vegas region dealerships asking price was.
So, for the price of two airline tickets from Vegas to Ontario (California) and taxi cab fare to the auto dealership, my friend saved thousands of dollars, even when it meant they traveled over 200 miles to make the deal.
When visiting my friend and her family, I've noticed other new SUVs in the neighborhood with Southern California region dealership paper plates on those vehicles; so word has gotten around that a particular upscale auto make multiple dealerships in Southern Nevada won't cut discount deals with its SUVs.
For the past 25 years I have bought cars strictly over the phone. After researching the brand & model on CR & RUclips, I test drive the car when I'm not ready to buy a car. When I'm ready to purchase, I search for the exact model & color with under 20k miles in adjoining large cities and start calling. I offer a firm cut price for cash. Once offer is accepted, I request a purchase offer doc. Only then do I go to purchase the car. For good measure I test drive the car on the highway usually alone. Using this method, I have had a pleasant experience in purchasing 5+ cars with the manufacturers warranty still intact.
Buying a car is terrifying for most. People don’t trust car salesman. They see them as snakes. If you can avoid that experience in your life then it’s a win
it's a conflict of interest.
You don't buy something you need from a person who has an interest in screwing you over
They have good reason for not trusting car salemen.
I just want to buy either new from the manufacturer directly or used from the previous owner.
That is the best way to avoid these overpriced fools...Online/Offline, they are still CAR DEALERSHIP...And they are going to mark up the price like crazy. I have never seen any of these online car sales website and said to myself...Their prices are FAIR.
I bought 5 new cars in my life, the first 3 were full of headaches and regrets that ended up costing me thousands of dollars more, the last 2 were a breeze and salesperson and financing manager’s heads were spinning by the time I drove away, I got financing through my local credit union in advance, I rented a truck just like the one that I wanted to buy, I called a few dealerships to ask if they had it in stock by model and color, made appointments and I spent 5 minutes in the first 2 because they lied when they talked to me on the phone and they were trying to sell me something different, my response was “I’m looking for that very specific truck because is a gift for a love one” the third dealership had the truck in the right color and price, when I said “Great, I will take it” they didn’t know what to say, financing manager was confused and upset, she couldn’t sell me anything extra, that was a really good feeling.
⭐⭐⭐⭐⭐ 5 stars!!! Going to a car dealer is so FUN!! I almost pulled all my hair out, and having them pressure me to sign my soul away after 30 minutes of talking to them is a once in the lifetime experience. Highly recommend.
totally love the car selling experience with Carvana..it is pretty streamlined.
You pay $3000 or more when you buy online vs the dealer.
That isn’t true.
@@GeneDexterExperience Yes it is.
@@disneyfan9099 No. it isn’t.
The next thing to fix is the dodgy dealer servicing! I caught the Kia dealer (Osborne Park Western Australia) not changing the oil &filter & pollen filter ! Top tip put a spot of silicone between the filter & its housing ! So then I checked the pollen filter & that hadn’t been changed either .
i will never buy at a dealership again, their goal is to rip you off whereas online is fully transparent and simple
Because they are not trying to make a profit? Have fun with chat boy trying to get a “better price”
People have always done their research online, but they still go to the dealers for test drives.
No mention of Shift Technologies?
I hate the haggling process of dealerships. I have wanted a car for a while now, but I keep putting it off because I don't want to deal with the stress of negotiating. I've never bought a car online before, but I'm definitely considering it after this video. If dealerships want to still be in existence in 2050, they better create a law banning haggling at dealerships. Fixed price cars only. "Take it or leave it" prices. Great video. Really exposes how outdated the dealerships process is. 1% of people like the dealership experience? Dealerships, you listening? Something's gotta change, big time.
I got it down to a science.... pre-approval from my credit union, I do all my research online, head to the dealer and take a 10 minute test drive 🚗.....after that I tell them I have XX,XXX amount of money to spend, if they can't make it work then I'm GONE!! Give them 10 minutes to figure it out😉
Cool don’t have to deal with someone like you for more then 10 minutes.!!!
@@signrighthere1468 informed consumers scare you? Checks out, this dude is definitely a used car salesman.
@@signrighthere1468 Easy and fast commission, what's not to like?
Used car dealers and dealerships in general being scummy is what makes buying online seem risky. Carvana and Vroom could have a 1 year guarantee and still wouldn't trust anything used coming from them, especially sight unseen.
great idea! just buy from Tesla on line and pay FULL PRICE!!!
Carvana gives you 7 days to try the car or return it, more than enough time to have it inspected by a mechanic. 10/10
@@chiefdan07 That wasn't enough in my dad's case. But I would STILL buy a car from carvana before I go back to a dealership.
I think sites like carvana are a good push in the right direction, but their prices are outrageous usually 5k-10k higher than a specific model of car is worth outside of them. I will go to a dealer to try to save that money.
I see your point but usually the dealer adds a few thousand dollars on top of the advertised pricing. Especially with the finance manager.
Carvana and vroom overpriced big time, every time I see the license plate frame I laugh
@@chrisvarelabenitez4690 Not really
Dealerships are CRUMBLING | YOU Can End SHADY Dealer Tactics ruclips.net/video/-NhmuoKIYBg/видео.html
Bought car from Carvana 6yrs ago and it was a great experience. Price was a little below KBB so maybe if a good hagler could maybe have gotten a better price from a dealer if you didn't mind spending all that time and frustration at a dealer. Car was prep'd very nice by Carvana it looks really clean. Nothing was hidden and transaction was quick. They delivered the car to my house on christmas day which amazed me. The only con was the car wasn't inspected and didn't realise that. Not a big deal. Back when I bought my car it was a little tricky to find a car with all the options I wanted. Its different today because cars/vans/trucks are so loaded with options. Would do it again.
Carvana is WAY OVERPRICED!!!
I would never buy from Carvana.
Yes
Short answer: because stealerships. Here, I saved you 17 minutes of your life. Use those wisely.
great idea! just buy from Tesla on line and pay FULL PRICE!!!
My last experience was at a sports complex advertising cars on sale. We found a Toyota we wanted. Was told they could take 2000 off the price. which after we got started they just added the $2000 back on. I wanted to walk out but my husband continued with the purchase. Buying at a sport complex in a huge tent was the worst. It was loud in there. They were playing music. My brain wasn't happy. Then when you think you are about done they offer a lower interest rate if you do xyz. Anyway we ended up buying the car but will never go back to a dealer esp at a tent sale. It was just torture. Best part is we got a very nice car that is now paid off and going strong.
Three folks I know bought from Carvana and all three gave the experience a resounding positive response. I personally like to haggle, just more fun.
Nice vid mate!!! ❤️
The cost of living is getting higher per sec...People are complaining about employee wages and it's the more reason to start your own business. Even if its something small, make yourself your own ceo...
Nevertheless Investments like; (Gold, stocks, real estate, crypto, buying of Shares nd other tangible assets) are easiest ways to accumulate money.
Just do your research on what car you want, secure funds before getting to the stealer and tell them exactly what you want and do not deviate
Or do some research and buy a used car from a private sale it’s not that hard . I have bought 6 cars and even after years of using them when I sold them
I got my money back on the initial purchase . Dealerships are for lazy Americans who can’t think
Yeah my last trip at a dealership ended up with a particular car we wanted, particular options, and but the big thing was a special they were having which was 0% financing for 5 years which was free money as far as I'm concerned since my investment accounts make 7+% a year. But damn, they started with "we only have this one" and we say "that's not what we want", the all weather floor mats were a must (due to child) but they only had those on the "higher tiered" model, we asked them can't they just swap the mats out? They said no, so we said no. Eventually they "found" one at a different dealer down south, but it was more expensive, after a couple hours and not showing any reason to budge he finally got fed up and said "what would it take to get this deal done" we basically said we want "that model level, those mats, and that price" did the ol' "lemme check with my supervisor" to which I told the wife if they try anything we're walking, and sure enough he came back and was willing to deal... they still didn't actually have the car or a place to get it as I found a week later and him telling me multiple places he was going to get it..
fingers crossed websites/app put that guy, and it’s imaginary supervisor out of work :)
I drive a car carrier and I commonly deliver cars right to people's homes or work (whichever they like) with my semi. It's a very reasonable price to get cars directly to the customer, and it allows a dealer to sell into a much wider geographic area. The customers also get a kick out of their car being dropped off by car carrier right to their front door like it was an Amazon package. I have delivered hundreds of vehicles all over the place, some coming by ferry or rail, from other jurisdictions. I have not yet had an unhappy customer. This is in British Columbia, Canada.