Online car buying is going in a weird, irresponsible direction

"Chairman Kaga" (mike-mckinnon)
09/02/2016 at 10:28 • Filed to: None

This morning on my drive to the office I heard an ad for a new online car buying service called !!!error: Indecipherable SUB-paragraph formatting!!! . Their entire pitch to the consumer is that car buying is time-consuming and boooooo-ring. That going on test drives and researching different models and trims is a waste of time. So why not just pick the color you like and buy a car sight unseen?

OK, sure, lots of us here have bought or at least considered buying a car from many states away and having it shipped. But I also bet we all spent hours driving cars to decide on the exact model, year, and trim level we wanted, then shopped nation-wide for that car.We probably hired a mobile PPI tech to inspect the car. We probably talked extensively to the seller about the car’s history. We might’ve even flown out to see the car in person and drive it home after the deal is done, or fly home empty-handed if it wasn’t perfect enough.

But now we’re being told this is all pointless. Just go online and buy a car. Get financing, pay the man, and wait a week for your purchase to be dropped off in front of your house. Don’t test drive, it’s a waste of time! How 2007 of you. Just buy it. You’ll love it. Promise.

To be fair, I think most consumers these days are only concerned with how many buttons are on the dash, and for those folks there’s fundamentally no difference between a Corolla and an A4. Vehicles are appliances, and we’re being conditioned to base our decision largely on !!!error: Indecipherable SUB-paragraph formatting!!! .

I dunno why, but this entire concept really bugs me. Cars are generally the second most expensive purchase we’ll make (unless you count college as a purchase, and I guess we should). I can’t help but feel that convenience is diminishing our ability to think critically and solve actual real-life problems, like making expensive, life-altering purchases.

DISCUSSION (18)

Daily Drives a Dragon - One Last Lap > Chairman Kaga
09/02/2016 at 10:34

I’ve seen trucks from similar services and don’t understand how people are comfortable not knowing about what they’re buying.

Steve is equipped with Electronic Fool Injection > Chairman Kaga
09/02/2016 at 10:40

I could see myself using one of those services if I had already done my research, was looking for something specific, and driven a few cars. Otherwise I stay away from them.

jimz > Chairman Kaga
09/02/2016 at 10:42

I’ve heard ads for Blue Apron on XM. One of the things they pitch is “No more overwhelming trips to the grocery store.”

are there really people out there who can’t do anything if it can’t be done from their phone?

TysMagic > Chairman Kaga
09/02/2016 at 10:43

Can’t vouch for Vroom, but I purchased my car through Carvana. If I didn’t like it when I first got it I could walk away - further I had a full week of driving I could do with it and if for ANY reason I didn’t want it, I could return it and walk away, no questions asked. That was more than enough comfort for me to feel comfortable with the purchase.

To me, where online purchase makes the most sense is with new cars. You find one you like with options you want, there’s not a concern of something being “wrong” because theoretically it should be brand new. Put that same return policy on it and golden.

spanfucker retire bitch > Chairman Kaga
09/02/2016 at 10:48

To be fair to Vroom, you have like a week and several hundred miles of usage to return it - without you paying a cent. They come pick up the car and they reimburse you for your loan if you decided you don’t want to keep it.

Their sales pitch is basically you get an extended test drive when you purchase the car - in that amount of time between driving it and possibly inspecting it - if you’re unsatisfied in any way, you return the car and get a full refund of everything.

I don’t really see the problem.

E92M3 > Chairman Kaga
09/02/2016 at 10:52

These types of companies are popping up all over now. They ease your concerns about not being able to see the car in person, by offering a 3-5 day return policy. If you don’t like it, simply call them, they will come pick it up, and return your money.

While simpler car buying is a great idea, their model is flawed in a couple of ways. While most people wish they wouldn’t have to waste hours haggling prices, they also don’t want to over pay. Some of these companies no-haggle prices are better than Carmax prices, but they are still higher than what you could get haggling elsewhere.

Secondly, sometimes the car we think we want is a let down when we actually drive it. I thought I wanted a ML350 a couple of years ago. Then I drove one. The steering feel/brake feel was awful. One of the most disconnected driving experiences I’ve ever had.

While the return policy sounds good on paper, not everyone has a second car to fall back on allowing them to return the car, wait for the money to clear, and start the search all over again for that new car. Believe me, they know this.

I just don’t see how their business model is sustainable. If it was new cars maybe, but not with used cars.

WiscoProud > E92M3
09/02/2016 at 10:56

I had the same experience with a Wrangler JK. I still like them, but the steering was way too vague for me to DD one.

WiscoProud > spanfucker retire bitch
09/02/2016 at 10:59

If you have to get a loan you get the car, your credit score will read it as a hard inquire. If you return the car, then pick another, you will have a second hard inquire. Undoing an auto loan isn’t as simple as they make it sound. If you get to have the car for a few days before the loan is processed, that’s a different matter entirely.

spanfucker retire bitch > WiscoProud
09/02/2016 at 11:00

If you get a loan through the same place (either them or a third party) they don’t need to run yet another credit check on you.

Chairman Kaga > TysMagic
09/02/2016 at 11:03

This is basically how car buying works in Europe and Japan. Franchised manufacturer stores have “samples” for you to drive, and some inventory on hand, but you can also go straight to the manufacturer and buy the exact car you want from them.

But as someone else stated previously, it’s more of a hassle than it seems to exchange a car you’ve already bought, especially if you’re financing. They pitch it as a straight up guarantee, but in practice the process would probably discourage many consumers.

Chairman Kaga > Steve is equipped with Electronic Fool Injection
09/02/2016 at 11:07

I could in certain situations. The satisfaction guarantee is not something you’re going to get from the majority of dealers, sometimes even with certified cars. My main problem with these services is that they’re turning something that should be a protracted, long-term research project into what’s almost an impulse buy. Click. Autofill some forms, and you’ve bought a car.

WiscoProud > spanfucker retire bitch
09/02/2016 at 11:11

Even so, they make it sound like you just switch the loan to the car you want, but its not that easy. Considering the first loan will have been processed and then paid off, a new loan may require a new credit check. If the loan isn’t processed and I change my mind of vehicles a new check isn’t needed, but since the loan was created and paid off, you might.

Also, do they reimburse you for tax and license fees? Taxes are typically a substantial part of the cost.

spanfucker retire bitch > WiscoProud
09/02/2016 at 11:13

I know they reimburse you for license fees, can’t remember about taxes. I think they do?

TysMagic > Chairman Kaga
09/02/2016 at 11:14

As long as that agreement is understood with the finance company the dealer/individual is working with. For example, I’m in the auto finance industry and we have certain dealers who offer money back/return promises for X days. We honor those to support the dealer so they’re not on the hook for paying off your new car you decided you didn’t want. Of course that is by choice and if the consumer decided to finance with someone else there isn’t a guarantee they’d honor that return policy - so I agree with you there, could be very frustrating

TheTurbochargedSquirrel > Steve is equipped with Electronic Fool Injection
09/02/2016 at 11:23

I could see it being useful for new cars, after some research. I would be concerned about buying used this way. I could tell them that I want a World Rally Blue 2004 WRX STi but there would be no guarantee that I would get a good example over some kids beater with 200k+ miles and a salvage title. Maybe if I had already decided on a certain example of a car to risk I might hire someone to go perform the actual purchase and ship it to me but a vague request just sounds like a bad idea.

Chairman Kaga > TysMagic
09/02/2016 at 11:27

I think the point I’m trying to make is that the industry has found a way to capitalize more on people’s impulses to buy things without doing adequate research, and make it as easy as possible to make spend as much as possible with as little effort as possible, feel like something awesome and fun. “It’s the fuuuuuuuture...”

And I just don’t know if that’s a good thing. Impulse buying anything is a bad idea, but cars is a whole new level.

I mean really, the pitch is “You’re tired of your 3-year old car, and voice commands actually work 75% of the time, so now you can upgrade to a practically new Canyonero with just a few clicks. And at only 12.5% APR! That’s less than HALF your Visa card’s rate!”

TysMagic > Chairman Kaga
09/02/2016 at 11:29

I think you summed it up really well in that last statement.

additional topic, our recent big sales push (like most of the big guys) is 0% for 72 and that’s been the most ridiculous thing I’ve seen. Sure I’ll finance 150%+ of my car, 0% wooooooooooo

Chan - Mid-engine with cabin fever > Chairman Kaga
09/02/2016 at 13:59

This won’t work for most buyers. A car is the biggest consumable item most people will ever buy.

For something so expensive you want to make sure you like that new Corolla, and that it feels good and feels right . Also that new paint colour needs to be acceptable in person.

Just because you liked your old Corolla doesn’t mean you would be willing to buy a new Corolla sight-unseen.

And what if it has a huge dent, and the transporter says it was already there? And you’ve already paid ?