Traditionally, buying a new car has revolved around setting aside weekends after researching the market to visit dealerships and test-drive new sets of wheels. Now, car buying has evolved with the times, with online car shopping offering flexibility without the need for leave your home. Here we’ll take a look at some of the best ways to buy a car online and factors you should consider before purchase.

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In the market for a new car? The table below features car loans with some of the lowest interest rates on the market.

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LenderCar LoanInterest Rate Comparison Rate* Monthly Repayment Interest Type Vehicle Type Maximum Vehicle Age Ongoing Fee Upfront Fee Total Repayment Early Repayment Instant Approval Online Application TagsFeaturesLinkComparePromoted ProductDisclosure
6.24% p.a.
7.36% p.a.
$583
Variable
New
No Max
$8
$400
$35,000
  • Available for purchasing new and demo vehicles
  • $5,000 to $150,000 loan amount
  • Redraw facility available up to $5000/day
  • Required: Good credit history, stable employment history. Aus citizenship or PR.
 Disclosure
6.34% p.a.
7.46% p.a.
$585
Variable
New
No Max
$8
$400
$35,084
6.57% p.a.
7.19% p.a.
$588
Fixed
New
No Max
$0
$250
$35,278
  • No vehicle age limit
  • No ongoing or early exit fees
  • 1-7 years loan terms. Pay monthly, fortnightly, or weekly
 Disclosure
6.52% p.a.
6.95% p.a.
$587
Fixed
New
No Max
$0
$0
$35,236
Important Information and Comparison Rate Warning

All products with a link to a product provider’s website have a commercial marketing relationship between us and these providers. These products may appear prominently and first within the search tables regardless of their attributes and may include products marked as promoted, featured or sponsored. The link to a product provider’s website will allow you to get more information or apply for the product. By de-selecting “Show online partners only” additional non-commercialised products may be displayed and re-sorted at the top of the table. For more information on how we’ve selected these “Sponsored”, “Featured” and “Promoted” products, the products we compare, how we make money, and other important information about our service, please click here.

The comparison rates in this table are based on a loan of $30,000 and a term of 5 years unless indicated otherwise. The comparison rates for car loans and secured personal loans for the relevant amounts and terms are for secured loans unless indicated otherwise. The comparison rates for unsecured personal loans are applicable for unsecured loans only. WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. Comparison rates are not calculated for revolving credit products.

Monthly repayment figures are estimates only, exclude fees and are based on the advertised rate for the term and for the loan amount entered. Actual repayments will depend on your individual circumstances and interest rate changes. Rates correct as of . View disclaimer.

Important Information and Comparison Rate Warning

Research through online platforms

Whether you’re looking for something fresh off the manufacturing line or a second-hand run-around, online platforms can provide an overview of the market, vehicle offerings and details to facilitate online purchases.

Platforms such as CarSales, Carsguide, and Autotrader are the primary platforms when it comes to searching for a vehicle online. These sites usually list price guides and model history, vehicle comparisons, latest news and model reviews.

If you’ve scrolled far enough and finally locked eyes on a vehicle that could be ‘the one’, these platforms can connect you with dealerships offering an online buying experience, meaning they have the potential to take control of all the guesswork - all you have to do is take the vehicle for a spin, have your finances in order and sign on the dotted line.

Before committing to an online purchase, it’s important to test drive the vehicle you have your eyes set on, ensuring it lives up to more than just its facade - otherwise you may be left with a severe case of buyer’s remorse. New cars are far less likely to have any defects than a used vehicle, but they aren’t perfect, nor are the people in charge of looking after them on the lot. 

Options when buying a car online

There are a few options if you want to buy a car online, either directly or indirectly through a car buying service. For used cars, an auction service could also be the way to go.

Direct with manufacturer or dealership

In the modern automotive landscape, more than a handful of manufacturers are now allowing customers to buy a new car online, organise contactless deliveries and provide you with the equivalent of a digital showroom to compare different colours, interior options and features. 

From choosing your ideal make and model, colours and accessories, most dealerships will offer the ability to place an order online - even delivering a demo to your doorstep to test-drive in the comfort of your own suburb.

However if you don’t want to deal with a dealership, a car buying service could be up your alley.

Car buying service

Car buying services eliminate the need for you to negotiate with dealerships directly. Car buying services or car brokers usually work with a network of dealerships and source the most competitive price for you. They often get access to fleet pricing, too. Their cost is often baked into the final sales price of the car, but the ultimate savings could be worth it. Services include:

  • OnlineAuto - OnlineAuto’s ‘buying specialists’ can help you find a suitable model for your needs, as well as potentially save you money on the deal through its bulk-buying business model, and can even organise the car to be delivered to your door.

  • CarConnect - Those in the market for a new ride can choose from a new car or a second-hand model, with CarConnect working with dealerships to help you find the best fit for your needs, aiming to take out the negotiation phase to help all parties get the best deal possible.

  • Cars24 - The newest player to the online car buying scene, Indian start-up CARS24 now allows Australians to buy used cars from home in under five minutes, with the car then delivered to their door.

Car auction websites

Auction houses including Pickles, Manheim, and GraysOnline allow you to tune into auctions online and bid from the comfort of your home. From there if you’re the winning bidder you can usually organise for the vehicle to be delivered to your door.

The major downside of car auctions is that you usually can’t test drive the vehicle prior to purchase. However you can organise for an independent mechanic to go and inspect the vehicle.

Keep in mind it’s always best to do your research and take precautions before locking yourself into a deal, including booking an inspection and ensuring the paperwork is up to date, that way you don’t end up with a lemon.

Read more: How to negotiate buying a car

Why buy a car online?

If you are in the market for a new set of wheels, a few ways buying a car online may be of benefit to you include:

  • Time is on your side: Going online lets you do your research, comparisons and bargain hunting at your own pace. It also lets you look over more vehicles more efficiently and do it outside the pressured environment of a car dealership.

  • Knowing what you want: If you have a clear indication of the car you desire or have specific needs such as a handicapped-accessible van or an off-roading truck, you may find it online faster. In addition, if you find a model online that’s available at a dealership nearby with the same specs, you could use that in your negotiations.

  • Removing the middle man: Another drawcard to buying a car online is not having to negotiate with the sharks that can be car salespeople. This means you don’t have to haggle or be persuaded into a sale, you can walk away simply walk away at the click of a button.

  • Don’t want to test drive: One of the biggest factors in buying a car is the test drive. Many people have test driven the car they wanted, only to get out thinking it’s not the one, leaving them scratching their head for what to do next. If you’ve watched enough online videos and read enough reviews, you might feel comfortable without a test drive. Since online dealerships typically have seven-day ‘change of mind’ guarantees, you may be able to try the car for a week to determine if it’s the one.

Financing an online car purchase

If you have found your next set of wheels but don’t have the savings stashed away to purchase it outright, there’s a number of key considerations to factor in before agreeing to financing.

Consider the interest rate on offer, whether the loan is secured or unsecured and ultimately how this could change depending on the market. It’s important to also weigh up the loan terms, which can typically range between one to seven-years, depending on your financial circumstances.

Typically, the shorter the loan term, the less interest you’re going to pay, but this requires more substantial regular payments. Longer-term financing deals will mean you pay more interest over time. You could also consider a loan with a balloon payment that you will pay to your lender at the end of the car loan term to offset high monthly repayments.

Read more: What makes a good car loan?

Savings.com.au and OnlineAuto.com.au are both associates of the Firstmac Group.

Image by Alex Suprun via Unsplash