How to Buy a New Car Online

Can I Buy a Car Online?

Buying a car online has become an option for millions of shoppers. The global online car buying market reached $390.4 billion in 2025 and is projected to grow to $836.4 billion by 2034, according to market research firm IMARC Group.

According to Cox Automotive's 2025 Car Buyer Journey study, just 7% of buyers reported purchasing entirely online. However, those who completed at least half of the required steps online reported greater satisfaction, especially when AI tools were in play.

That said, the process works differently depending on where you shop,

• Automaker websites: Many manufacturers let you configure and order new vehicles directly, sometimes with home delivery.
• Online car retailers: Platforms like Carvana and CarMax specialize in used cars with no-haggle pricing and home delivery options.
• Traditional dealerships: Many dealers now offer digital tools that let you start or complete the buying process online.

How Do I Buy a Car Online?

Buying a car online follows many of the same steps as a traditional purchase—you just handle more of the process from your computer or phone. Here's how to do it.

1. Get Your Finances in Order

Before you start browsing, take stock of your budget. Determine how much you can afford for a down payment and what monthly payment fits within your income. A common guideline is to keep total car expenses—including insurance and gas—below 15% to 20% of your take-home pay.

You'll also want to check your Experian credit report and FICO^® Score^Θ to get an idea of where you stand. If your credit score is on the low end and you plan to finance your purchase, consider taking some time to improve your credit before proceeding.

If you plan to finance, get preapproved for an auto loan through a bank, credit union or online lender before you shop. Preapproval gives you a clear picture of your interest rate and lets you compare offers from dealers.

Learn more: Compare Current Auto Loan Rates

2. Search Vehicle Models

Once you know your budget, narrow down the type of vehicle you need. Consider passenger capacity, cargo space, fuel efficiency and whether you prefer new or used.

Start by reading expert reviews on automotive websites to compare reliability ratings, safety scores and ownership costs. If you're open to used vehicles, sites like Kelley Blue Book, Edmunds and J.D. Power can help you understand fair market values.

3. Shop Around for Deals

With your target models in mind, compare prices across multiple platforms. Automaker websites let you build and price new vehicles. Online retailers like Carvana and CarMax offer used cars with fixed pricing and return policies. Third-party marketplaces like Autotrader and Cars.com aggregate listings from dealerships and private sellers.

Tip: Don't forget to factor in taxes, registration fees and delivery charges. Some retailers charge delivery fees based on distance, while others offer free delivery within a certain radius.

4. Reach Out to a Salesperson

Even when buying online, you'll likely communicate with a salesperson or customer service rep. Use this as an opportunity to ask about the vehicle's condition, warranty coverage and logistics.

If you're buying from a traditional dealership, you can often negotiate via email or text. On no-haggle platforms, focus on clarifying trade-in value, financing terms and delivery timelines.

Request the car's vehicle history report if it's not already provided. Services like CARFAX and AutoCheck reveal past accidents, service records and ownership history.

5. Test Drive the Car

While you can handle most of the process from home, skipping the test drive is risky for a major purchase. Some online retailers offer at-home test drives or return policies that let you evaluate the car after delivery. Carvana allows returns within seven days, while CarMax offers a 24-hour test drive at participating locations and a 10-day return policy.

If you're buying used, it's a good idea to have an independent mechanic inspect the vehicle before you finalize the purchase.

6. Ink the Deal

Once you're satisfied with the vehicle and terms, complete the transaction. For fully online purchases, this typically involves signing digital paperwork, submitting proof of insurance, arranging payment and scheduling delivery or pickup.

Review all documents carefully before signing. Make sure the purchase price, loan terms and fees match what you agreed to. The retailer or dealership usually handles title transfer and registration, but confirm the timeline so you know when to expect your plates.

Learn more: When Is the Best Time to Buy a Car?

Is Buying a Car Online a Good Idea?

For many shoppers, buying a car online offers clear advantages. The convenience factor is significant. You can browse thousands of vehicles from multiple sellers without spending weekends driving from lot to lot. Fixed pricing on platforms like Carvana and CarMax removes the stress of negotiation, and multi-day return policies reduce the risk of buyer's remorse.

That said, online car buying isn't for everyone. If you prefer hands-on shopping—sitting in different models, comparing how they feel and negotiating face-to-face—you may find the digital experience less satisfying. Used car buyers should also be cautious about purchasing sight unseen without a thorough inspection or a strong return policy.

Online car buying tends to work best when you value convenience, already know what vehicle you want and are comfortable handling logistics like financing and insurance independently. If you fall into that camp, the process can save you significant time.

Frequently Asked Questions

The Bottom Line

Buying a car online can be a smart, time-saving alternative to traditional dealership visits. The key is doing your homework. Get your financing in order, research the vehicle thoroughly and don't skip the test drive or inspection. With the right preparation, you can find a great deal and drive away confident in your purchase.

If you're preparing to finance a vehicle, consider signing up for free credit monitoring through Experian to get insights for improving your FICO^® Score and stay informed about changes to your credit report.