How to Buy a Car Online? Step-by-Step Guide

Ordering and buying a vehicle online is not as easy as shopping for clothes or groceries. A car is a big purchase, and the process involves legal paperwork, identity checks, and proof that you can afford it.

That said, many buyers can now complete most of the car-buying process online, depending on where they live and how they pay. In this guide, we’ll explain what buying a car online actually involves, how much of it can realistically be done remotely, and how to decide if this approach makes sense for you.

What Does It Mean to Buy a Vehicle Online?

In practice, “buying a car online” usually falls into one of the following approaches:

• Completely online purchase. This means finishing the entire car-buying process without seeing or test-driving the vehicle. You choose the car, handle payment and paperwork online, and arrange delivery or pickup, but this option isn’t available to everyone. Also, even though some sellers offer short return windows or trial periods, we don’t recommend this option, since a test drive is the only way to confirm a car (new or used) meets your expectations.
• Hybrid online buying. In this case, you get the benefit of completing most of the purchasing steps online, while still spending as little time as possible at the dealership. You go there in person to sign the final documents and test drive the car, and that’s it. Anything else, such as picking out a car, negotiating the price, or contacting the dealership/seller, can happen online, either via email or designated platforms that help you facilitate this process.

In other words, buying a car online usually means choosing how much of the process you handle digitally and how much you still want to do in person.

Step-by-Step Guide to Buying a Car Online

Here is a simple guide as to how you can go about buying a car online:

Step One: Set Your Budget and Financing

Before you start browsing, figure out how much you can realistically afford. Make sure to consider:

• The total price of the car (not just the monthly payment).
• How much can you put down as a down payment.
• Loan terms and interest rates if you plan to finance.

Some experts recommend getting pre-approved for an auto loan so you know your interest rate and budget upfront.

You can use online loan calculators or bank and credit union pre-approval tools to estimate costs and decide what you’re comfortable spending before moving forward.

Step Two: Research Vehicles Online

Research vehicles that fit your needs by browsing online listings. Online marketplaces like AutosToday let you explore available vehicles and filter results by:

• Location
• Make and model
• Mileage
• Price range

To narrow your search, it helps to be specific about what you’re looking for before reaching out to sellers. A simple way to do this is to answer a few questions upfront:

• What make and model are you interested in, or better yet, which ones are you not open to?
• Are you looking for a new or used car?
• What’s your ideal mileage range, and what’s the maximum you’re willing to accept?
• Which features are must-haves, and which ones are nice to have?
• How far are you willing to travel for pickup, or do you need delivery?

Browsing online makes it easier to compare similar cars across different dealerships and narrow down your options.

Step Three: Contact Seller

Once you have an idea of what kind of car you’re looking for, and you’ve researched potential cars, it’s time you contact the seller. In most cases, a sales representative or the seller will respond to your inquiry, giving you the chance to ask questions about availability, pricing, possible discounts, the car’s history, and what kind of fees you have to pay.

At this stage, it’s important to contact multiple sellers instead of limiting yourself to just one option. Doing so helps you compare prices, understand what’s reasonable in the current market, and see which sellers are more open to negotiating a better deal.

Step Four: Check Vehicle History

When you find a car you’re interested in, you must obtain the vehicle’s history report. Some dealerships can provide you with this information for a fee, or you can check other online platforms that compile history reports.

This is just to get you an idea of what kind of maintenance the car has had until now, verify the mileage, and see if there were any accidents. It’s important you pair the history report with an in-person inspection if possible.

Step Five: Set Up a Pre-purchase Inspection

When you’re browsing for a car online, you can schedule an in-person inspection to check out the car and see if it aligns with the history report and what’s being advertised by the seller.

Keep in mind that if you don’t want to be involved in this step either, you can contact a third party, e.g., a professional mechanic, who can go out and check the car for you. Of course, in this case, you have to pay a service fee, which depends on the party you’re contracting with.

Step Six: Negotiate the Price

Research similar listings for the same make, model, year, and mileage so you know the typical price range.

• Use mileage, visible wear, missing features, or any issues that may have come up during the inspection of the car as talking points when making an offer.
• Ask if the price includes all fees, or if there are additional costs such as documentation or delivery.
• Check whether the car has been inspected or reconditioned, and use any upcoming maintenance as leverage.
• If the seller won’t budge on price, try negotiating on extras like delivery costs, included servicing, or warranty coverage.

Don’t feel pressured to move quickly. One of the biggest advantages of negotiating online is being able to compare prices across multiple platforms and dealerships. You can use similar cars with a different price range to leverage your negotiation.

Step Seven: Schedule a Test Drive

One step we don’t recommend skipping is scheduling a test drive. Getting behind the wheel lets you see how the car actually drives, whether it fits your needs, and if anything feels off compared to the listing.

This is especially important if you’re looking at a used car, since wear, handling issues, or unusual noises aren’t always visible online. Pay attention to how the car accelerates, brakes, steers, and feels overall.

Step Eight: Finalize Your Purchase

Before you complete the purchase, take a few minutes to go through the paperwork carefully. Make sure you confirm the final price reflects what you agreed on. Check that any financing terms, warranties, or add-ons you discussed are included, and that nothing extra has been slipped in.

Next, confirm how payment will be handled, who takes care of registration and taxes, and whether you’ll be picking up the car or having it delivered. Once everything is signed and paid for, save copies of all documents for your records. All that’s left to do is have your car delivered or go pick it up.