Buying a car online: the growing trend of online vehicle purchases
As more and more of our lives shift online, people have started buying cars online in the UK more than ever before, without the need to visit a car dealership in person.
Buyers now have a repertoire of tools they can use to safely buy a car online. This includes digital marketplaces, vehicle comparison tools and online financing options, which let buyers browse, compare and read reviews from home. Weekends spent driving around the UK in person to view cars are history; it’s now possible to complete the whole process from the sofa.
These digital tools have made the car purchasing journey safer and more transparent for buyers and sellers alike. Detailed vehicle history reports, inspection services and online reviews are just some of the tools which help buyers gain an understanding of the condition and value of a car before purchasing.
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How UK Car Buyers Can Safely Buy Online: A Checklist
There are obvious benefits of purchasing a vehicle online. But mistakes and scams do happen. It’s important to play it safe and take precautions - do your research before committing to a purchase. If buying a new or used car online in the UK, you should follow these steps to minimise risk.
Verify the seller’s credibility: Before buying a car, check the website of the seller for reviews. Avoid dodgy companies and cowboys by searching online for company registration details and reviews on independent platforms like Trustpilot and Google.
Check the vehicle history: Don’t end up with an old banger or even worse, a car that’s previously been written off and could become a liability to insure. Run a vehicle history check to find out about any past accidents, theft records or finance issues with any vehicle you are looking to purchase.
Inspect photos and videos: Request high-res images and videos of the car taken at 360 degrees around the exterior, as well as in the engine bay and interior. Ask for photos of any wear or damage.
Ask for an independent inspection: We’re not all mechanics, and it can be a good idea to request an independent and unbiased inspection of a car’s mechanical condition from services such as the AA.
Confirm warranty & return policies: Luckily, most car purchases come with a warranty. But this can often only be for a few days. Make sure you know exactly how long the car is under warranty for.
Understand payment and delivery terms: It’s sensible to make sure you only use secure payment methods when buying a car. No cash! Make sure you receive important documents such as the V5C logbook and a detailed service history without gaps.
How Car Buying Has Shifted Online
The move online for car purchases was gradual at first, but it’s now accelerating fast (pardon the pun). Whereas purchasing a car once meant visiting different dealerships, negotiating a price in person and arranging collection, the process now takes place more and more online.
Marketplaces such as Auto Trader UK, Cinch, Cazoo and eBay Motors allow consumers to browse thousands of cars online, instantly. Much of this is driven by the rise in used car sales. As cars have gotten more expensive to purchase new, the used car market has exploded. According to the Society of Motor Manufacturers and Traders (SMMT), more than 7.2 million used cars changed hands in the UK in 2023; more and more of these transactions are now taking place online.
Smartphones are also a key piece of the puzzle. Everybody has one, and it’s now easier than ever to look for your next car whilst commuting, sitting in the doctor’s waiting room, or even in the bath! It’s not just the automotive industry, the majority of retail industries are going digital-first, and fast.
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Why Online Vehicle Purchases Are Growing in Popularity
No single reason is the cause of this shift online for buying a car in the UK. A number of factors are at play.
H3: Convenience and Wider Choice
It’s simple geography. If searching the traditional way for a new car, a person’s search area is likely to be confined to the area where they live and a handful of dealerships with limited stock.
But if shopping for a car online using platforms like Auto Trader (and especially if it can be delivered to the door with a service like Cinch), then consumers have got a much wider choice of cars to look at.
Price Transparency and Better Comparison
With so many options to choose from, comparing prices for cars online also becomes easier. A car that is dramatically over or under-priced sticks out more in a competitive market and it becomes easier for consumers to work out the fair market value for their preferred model.
Many platforms also offer pricing insights and valuation tools to help consumers work out if they’re getting a fair deal. This transparency is also reassuring for customers and makes the purchasing process less stressful for many.
Digital Financing and Payment Options
Financing a car purchase has also become easier and more affordable, with many platforms offering finance eligibility checks, online loan approvals, monthly payment calculators, digital deposits and even online part-exchange, all designed to make buying a car online easier and more affordable than ever.
Increased Trust Through Data
Trust plays a major role in online car purchases, and digital data has significantly improved buyer confidence. Vehicle history checks allow an increase in transparency and access to information that was hard to verify in the pre-digital car-purchasing world.
The Role of Data and Transparency in Online Vehicle Buying
One of the biggest difficulties when buying a new car, especially for buyers who aren’t automotive experts, is a lack of information. The seller often knows more about the vehicle than the buyer and may be willing to withhold or manipulate information that might put a buyer off the purchase.
For example, sellers can sometimes try to hide the fact that a car has previously been written off, or they may revise down the mileage of the vehicle to make it appear in better condition than it really is. Not all sellers act like this, but there is always the possibility of encountering a disingenuous seller.
This is where Vehicle Identification Number (VIN) checks come in really handy. These easy-to-order tests let buyers see all sorts of useful information about a car they are looking to buy; from accident history to ownership records and theft cases. All of this is information that can help the buyer to make a decision about their purchase.
Digital inspection services are becoming increasingly common, and some platforms now provide detailed condition reports with photographs, mechanical assessments, and grading systems to further build trust and transparency in the buying process. In some cases, buyers may even find offers such as a carVertical check free, helping them verify a vehicle’s background before committing.
Benefits for UK Consumers of Buying Online
Summarised below are the main benefits to buying a car online.
Wider Selection
From London to Leeds, buying a car online removes any geographic restrictions, and lets buyers search for their perfect vehicle across the UK.
Significant Time Savings
Removing the need to visit car dealerships multiple times saves time and money.
Transparent Pricing
With so many options, it’s easier to see what the market value of a certain model is, and to avoid overly expensive options. This is helped further by price comparison tools offered by digital marketplaces.
Easy Access to Financing
Digital finance applications break down the jargon and speed up the loan approvals process so buyers understand exactly the details of their agreements before committing to a purchase.
Faster Research Process
Digital tools such as vehicle history reports and valuation guides help buyers evaluate vehicles more efficiently and comprehensively than ever before.
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Challenges and Considerations When Buying a Car Online
There are obvious benefits to buying a car online, as we’ve discussed. But there are also challenges and downsides to be aware of.
No Immediate Test Drive
It’s hard to test drive a car from home. If visiting a dealership the old fashioned way, it’s normally possible to arrange a test drive. This may not be possible if purchasing a car online.
Variation in Condition Reporting
Online listings can be deceptive. A hidden scratch here or a scuff mark conveniently left out of the photos there. Get around this by asking for 360 degree photos and videos of the inside and outside of the car.
Return and Refund Policies
Return and refund policies can vary wildly, with some platforms and retailers only offering a 7 - 14 day return window, whilst some private sellers may not offer refunds whatsoever.
Delivery Logistics and Costs
Whilst some platforms include delivery of a vehicle purchased online, for others, the buyer themselves will need to organise delivery or collection.
Potential for Incomplete Information
Even with all the precautions listed in this article, some listings will still be missing a full service history or may include misleading information, it’s impossible to verify everything 100%. Reduce the risk by sourcing as much information as possible, including by combining seller verification, vehicle history checks, and independent inspections.
Conclusion
If you’re looking to buy a car, then heading online is now the quickest and easiest way to do it. With loads of new digital marketplaces like Cazoo and Cinch to choose from, and tools to help you check out the history of a car and avoid making a bad choice, it’s safer than ever to buy a car online.
There are some downsides to this process; not being able to test drive the vehicle and limited or no returns, but these risks can be almost eliminated by careful research. Running a VIN background check is the most important way to check the quality and history of a car you are considering purchasing.
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