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