Buying a car online vs dealership: Which one to choose?

Buying a car in India has become tricky over the past few years. With the infinite number of options at your disposal, zeroing in on a car is equal to solving the Rubik's cube. Picking the right car for your needs takes time, effort and research. Selecting the right mode of purchase is equally important as choosing the right car. With the emergence of online car buying platforms such as ACKO Drive, car purchase has become convenient, quick and hassle-free. In this article, let's discuss the right mode of purchase when it comes to buying a car online vs dealership.

Buying a car online vs dealership

In this fast-paced digital world, most of your purchases are on the online platform. Buying cars online may sound like a bit too ambitious of an approach when buying your dream vehicle, but it is a practical option. Purchasing a car online can turn out to be a cheaper and more convenient way compared to the traditional dealership purchase. Refer to the table below for the key differences between buying a vehicle online vs dealership.

Car buying parameters

Below is a detailed explanation of some of the crucial parameters of the new car purchase.

Pricing

• Online car buying platforms such as ACKO Drive offer you better deals on new cars.

• Apart from the standard manufacturer discount, ACKO Drive also provides you with additional discounts.

• If you buy a car from an offline dealership, you need to bargain to get a good discount, which is not the case if you opt for an online car purchase.

Turnaround time

• When you buy a car online through ACKO Drive, you get faster delivery on priority.

• The overall processing time is also less when you opt for an online mode of purchase.

• Offline dealership purchases may be time-consuming due to excessive physical paperwork and other processes.

• You may also need to wait for a long time to get your hands on the car when you buy a vehicle through an offline car showroom. However, the timeframe may vary depending on the make and model.

Financing

• Once you book the car online, ACKO Drive will assist you with the car loan process.

• The documents required for the loan approval can be collected from your doorstep.

• Also, online car buying gives you the flexibility to choose the financial institution for a car loan.

• In the case of a dealership, you may have to stick to the financing options provided by the dealer.

• It may also involve cumbersome physical paperwork, and the loan approval process may take too long.

Pros and cons of buying a car online vs dealership

You know the significant differences between buying a car online and offline. This section throws light on the pros and cons of buying a car online vs a dealership.

Benefits of buying a car online

Below are the advantages of online car buying.

• One of the significant advantages of online car buying is that it saves you a lot of time.

• Online platforms such as ACKO Drive have multiple car brands under one roof. Hence, you can find a vast number of options in one place.

• You need not rely on your bargaining skills to get a good deal.

• You also get additional discounts on new cars.

• You need not visit multiple car dealerships before booking the car.

• Faster new car delivery.

• No hidden or additional charges.

• Your car will be delivered to your doorstep.

Also, read: Car buying guide - Tips for buying a car the smart way

Disadvantages of online car purchase

Below are the demerits of buying a car online.

• You cannot physically look, feel and inspect the car before booking.

• There is no option to test drive the car before proceeding with the buying process.

• Lack of a salesperson to explain to you the key details and features of the car.

• Online car buying services may not be available in all the cities in the country.

Benefits of buying a car from a dealership

Here are the advantages of buying a car from an offline dealership.

• You get a first-hand experience of the car when you visit a dealership.

• You can instantly test drive the car and then make your purchase decision.

• There is a lot of scope for bargaining on the price, car accessories and other services.

Disadvantages of offline dealership car purchase

Below are the demerits of buying a car through a dealership.

• You may have to visit several car dealerships to zero in on a car.

• The booking and the overall buying process is slower than online car purchase.

• You may need to follow up with the dealership for timely car delivery.

• You may not get a good deal on your new car without good bargaining skills.

• The discount offers may be limited.

• Depending on the make and model, the new car delivery timeline may be too long.

• You have to go through the tiring process of physical paperwork.

• The dealership/salesperson may be biased and may not provide honest feedback about a particular car to push the sale.

When should you buy a car online?

Online car buying is a perfect option if you have a fair knowledge of cars. If you can perform thorough research on the cars you wish to buy and make a sensible decision, an online car purchase is for you. Once you zero in on a vehicle, the rest of the job is very straightforward when you opt for buying a car online. The hard part of the process is shortlisting the potential options, research and deciding on a car.

So, if you are well-versed with the Indian car market, can research the potential options and make a sensible decision, you can easily go for the online option. Buying a car online is super-convenient as you need not visit multiple dealerships, fill out forms and bargain to get the best deal. Moreover, you also get the doorstep delivery of your new car.

When to buy a car from a dealership?

If you are a purist and not comfortable with buying something as expensive as a car online, you can walk into a dealership and proceed with the purchase. Doing so will also allow you to see the vehicle in person and also get a feel for the vehicle. You also have the option for a quick test ride to make further inroads into your car purchasing journey.

Buying a car from a dealership is also helpful if you need assistance choosing the right car for your needs. Also, if you are not well-versed with terms associated with the cars, you can save the effort of extensive research and visit the dealership to select the right vehicle for you. Speaking to a salesperson at the dealership may help you make the right decision.

Online car financing vs dealership financing

Typically, a car dealership will have a partner bank to provide you with financing options. You may have to rely on that sole option for financing if you are buying a car through a dealership. Hence, you may not have the flexibility to explore multiple car loan options.

However, at ACO Drive, you are free to sort out your financing options. If you need any assistance, we can also help you provide financing options. ACKO Drive will also assist you with documentation (doorstep document collection) and faster loan approval. Overall, you have the flexibility to explore multiple options for a car loan when you opt for buying a car online.

Dealer fees to watch out for when buying a car

If you decide to buy your next car via an offline dealership, you need to be aware of some of the additional fees that a dealer could levy on top of the vehicle's price. One of the standard types of fee is the handling or logistic charge.

As per law, a dealer is not supposed to add such charges because the vehicle's ex-showroom price already covers those expenses. Also, look out for any other fee for documentation, polishing, etc. Read the quotation carefully before agreeing to the final price of the vehicle. The dealer may also push for optional accessories which you may not need. So, you have to be vigilant while purchasing a car through an offline dealer.

Also, read: How to not get ripped off by a car dealer?

Can you save more by buying a car online or at the dealership?

You should be able to answer this question as you have gone through the above sections that explain the key difference between online and offline car purchases. You save money and time by buying a car online (ACKO Drive). Since you need not visit the dealerships, you will save on the travel expenses. Plus, you get good deals and discounts on new cars online. Hence, you maximise the savings with the online car purchase.

But with the offline purchase, you need more time and money. From travelling to different dealerships to cumbersome processes, you can end up spending more than what you had planned. Moreover, with the current pandemic scenario, you may have to follow the social distancing rules, making offline shopping more difficult. So, online car buying is always a better option, provided it is available in your location.

Frequently Asked Questions (FAQs)

Let’s look at some of the most common queries and their answers regarding online and offline car buying.

Can I negotiate the car price when I buy online?

Generally, online car buying platforms do not allow you to bargain on prices. However, you may not need to negotiate as you get good deals on cars online. Apart from the standard discounts, online car selling platforms (in this case, ACKO Drive) offer additional discounts. Hence, you will not find the need to bargain.

Is it safe to buy a car online?

Yes, it is 100% safe to buy a car online. ACKO Drive offers a hassle-free new car buying experience. From the booking to the new car delivery, the process is transparent, and you get every update until you get your hands on the car. The online payment mode further bolsters the safety of the transaction.

Can I exchange my old car if I wish to buy a new car online?

Yes. You can exchange your old car if you buy the new car online. For instance, ACKO Drive will assist you with evaluating your old car. Hence, you can trade-in your old vehicle while buying your next car online.

Can I visit a dealership to test drive a car and buy it online?

Yes. You may take that approach if you want to be sure about the vehicle you purchase. You can walk into any dealership, take a test drive, and if satisfied, you can always buy it online. It is an alternative approach for those who want to have a look at the vehicle before purchasing.

Explore More:

• New car vs used car: Which is better to purchase?

• Car price negotiation tips: How to reduce car price?

• How much to spend to buy a car in India: Calculate car budget