Buying cars online is starting to click
05 February 2010
Shopping for cars online is becoming more popular and it’s a win-win situation, says Which? Car – you’re not only likely to secure a bigger discount, you’ll also have added legal protection.
Which? trawled the car market for 14 popular new cars* and found 12 of them cheaper online, many of them substantially. Five models were being offered at more than £5,000 below their list price, and six were more than £1,000 cheaper online than in a showroom.
Completing a deal online also makes the sale subject to the Distance Selling Regulations. These give customers a seven-day cooling off period after delivery in which they can reject the car and be entitled to a complete refund.** Online won’t be the best route for everyone, however, and there are potential pitfalls to watch out for.***
Which? Car has discovered**** that, while only a small percentage (5%) of Which? members surveyed bought their last car online, 18% said they are likely to do so in future.
People who aren’t prepared to buy on the internet are still arming themselves with useful information online (69% of Which? readers use the internet to research car purchases). If a web broker offers them a generous discount off list price, they can ask a local franchised dealer to match the price.
Richard Headland, editor, Which? Car, says:
"The internet is revolutionising the way people are shopping for cars and we’re all for it. Not only can buyers find bargain prices online - without haggling with a salesperson - they have better legal rights too. The web has thrown down the gauntlet to traditional bricks-and-mortar car dealerships.”
Notes to Editor
*This research took place in December 2009.
Models offered at more than £5,000 below their list price were: Citroen Xsara Picasso. List price: £16,895. Best online price: £10,265. Saving: £6,630; BMW 520d. List price: £28,145. Best online price: £22,426. Saving: £5,719; Ford Focus 1.8 Zetec. List price: £18,395. Best online price: £13,381. Saving: £5,014; Mercedes C250 CGi. List price: £29,648. Best online price: £23,841. Saving: £5,807; Volvo XC60 D5. List price: £31,605. Best online price: £26,225. Saving: £5,380.
Models offered more than £1,000 cheaper online were: Audi A5 2.0T. Best showroom price: £28,995. Best online price: £27,990; BMW 520d. best showroom price: £25,032. Best online price: £22,426; VW Golf 1.4 TSI. Best showroom price: £18,450. Best online price: £15,884; Ford Focus 1.8 Zetec, Best showroom price: £14,995. Best online price: £13,381; Mercedes C250 CGi. Best showroom price: £29,500. Best online price: £23,841; Volvo XC60 D5. Best showroom price: £28,200. Best online price: £26,225.
**This is because they are buying unseen, instead of purchasing a car in a showroom. The guidelines on cancellation rights for cars bought at a distance have been set out in a special book published by the Department for Business, Innovation and Skills. They are heavily weighted towards the consumer, although court action may be required if the seller disputes your right to reject a car.
***If you have a part exchange car, you may have to sell it privately or offload it at a trade price to a local dealer because not all online sellers are set up to deal with part-exchanges. When buying online it’s also important to check the car you’re interested in is a UK model. If it’s an import – which are often sold at lower prices – the spec could be different and it’s likely to be worth less in the future.
The same caveats apply as with any car sales transaction. Check out the background of a seller thoroughly – how long they have been trading and how many cars they sell each month – and if possible obtain feedback from other buyers so you can ascertain whether or not they are a bona fide business. If you’re unsure, try calling to speak to them to find out more. And remember that if you are offered a deal that’s too good to be true, it probably is.
****Which? surveyed 2,237 Which? readers in November 2009 about shopping for cars online.
The full article “The cut-price revolution” appears in the Spring 2010 issue of Which? Car. For further information, please contact Martin Chapman.
Which? Car Spring 2010, priced at £4.50, is available in Sainsbury’s.
To listen to the latest Which? Car podcast, go to which.co.uk/podcast.