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Would You Buy A Used Car From A PC

Written by Robert G. Jackson    Friday, 13 February 2009

From a Web based seller, that is. You can, with caution. No matter how you cut it, buying a used car can be a hassle. On a dealer's lot, you get pushy salesmen and somewhat limited selection. On the other hand, do it yourselfers face endless pages of classified ads, registration hassles, phone calls, visits to strangers, and nagging concerns about quality. Relief comes in knowing that some of these issues can be handled quickly by e commerce. A host of companies have come online to provide industry information, sell used rides directly, make referrals, match buyers and sellers, or serve as trusted third parties in a transaction. About 32 percent of all US households that purchased a used vehicle from September 1999 through March 2000 used the Internet in their buying process, according to Gartner Group, a market research firm. While the number of people who actually completed a purchase in cyberspace, as opposed to window shopping or information gathering, is relatively low (only 1 percent of those respondents), "people are becoming more and more confident as used car sites offer warranties and money back guarantees to make up for the fact that, in some cases, you can't kick the tires before you buy," says Thilo Koslowski, an analyst at Gartner. As consumer confidence grows, sales of used cars on the Web could jump from less than $10 billion in the US today to about $164 billion in 2004, according to IDC, a technology research firm in Framingham, Mass. Even if you're not ready to buy a car in cyberspace, there are still a number useful sites to check out. Kelley Blue Book (www.kelleybluebook.com), Edmunds.com, and Consumer Reports (www.consumerreports.org) offer great consumer tips, estimated used car values, and safety reports. Another site, Carfax.com, will take a vehicle's 17 digit Vehicle Identification Number (VIN) and provide a history report for about $20. Perhaps the real strength of the Internet is its ability to scan large inventories and find used vehicles of a particular make, model, and location (using your zip code as a locator). Sites including Autobytel.com and Cars.com play matchmaker to buyers and sellers, much like vast newspaper classifieds, while providing some warranties and financing services. Autotrader.com touts a used car "inventory" of 1.5 million listings with information on color, body style, engine size, various features, and sometimes photos. The service is free to buyers and sellers. The company makes money by selling ad space, links to other sites, and enhanced features for listings like boldfaced type. Other sites charge a fee (Cars.com charges $20 to list your vehicle on its site for 14 days). "We designed the company to help people streamline a difficult process and improve the decisionmaking process," says Autotrader CEO Chip Perry. The company's traffic has increased from 1 million visits a month last year to about 4 million now. Autotrader has also teamed with eBay to offer an online auction. The seller pays $25 to list a vehicle on the site and another $25 when a vehicle is sold. A link is available on Autotrader's home page.

Last Updated ( Friday, 13 February 2009 )