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