How to buy a car online
March 26, 2021 by Ryan Hirons
If you need a new car but are nervous about visiting a dealership, this advice guide covers everything you need to know 鈥 from the practicalities of buying from online retailers to your rights and protections as a consumer.
Where can I buy a car online?
More and more car manufacturers are starting their own online sales platforms for new cars 鈥 taking the hassle out of having to visit a dealership and letting you order a car from the comfort of the sofa, bed or even toilet seat if you fancy. You鈥檙e spoilt for choice nowadays 鈥 Dacia, Hyundai, Land Rover, Peugeot, Renault Vauxhall and Volvo are just a handful of the growing numbers of brands that will let you buy a car through their own website.
Exactly what you can do does vary a bit depending on the brand, though. For example, Vauxhall only lets you take out a Personal Contract Purchase deal on the cars it has in stock, while ordering a Dacia means you can pick between monthly financing or a single, one-off, outright payment to own the car. If you want to trade in your current car towards the price of a new vehicle, some platforms will also have a calculator to see its part-exchange value 鈥 based on the car鈥檚 age, mileage and condition.
It鈥檚 not just manufacturers directly that are getting in on the online sales market, many dealerships are starting to offer them as well. This is largely as a result of the coronavirus outbreak, which has forced many to close up for physical sales. The government has clarified that dealers can sell and deliver cars under current lockdown rules though, as long as they follow guidelines to ensure the health and safety of both employees who are unable to work from home and their customers.
A common solution adopted by dealers has been to mimic supermarket 鈥榗lick and collect鈥 services, allowing customers to come and pick a car up themselves after completing a purchase online. Many offer home delivery as well.
Buying a car through carwow
We鈥檝e been selling cars online for years. It鈥檚 what we do! Our unbiased reviews help you find the right car for you.
Unlike visiting a manufacturer or dealer鈥檚 website, you can pick and choose through hundreds of models from pretty much any car maker on carwow 鈥 configured to your liking. Dealers will then come to you with their best offers through your carwow account, so you don鈥檛 have to worry about haggling for the best price on your next car.
You鈥檒l see all your offers in one place, rather than having to cross shop across multiple dealerships and manufacturers sites, manually keeping track of all your prices and getting lost in a sea of notes or phone calls to haggle prices.
When you get an offer through carwow, you鈥檙e also informed of which dealers are offering collection or home delivery options to help you streamline the car buying experience too. If you want a further look before going ahead with a purchase, many of our trusted dealers also offer video calls to walk around of the car you want to buy.
Once you find the right car for you, you鈥檒l buy it directly from the dealership who can take your details, sort finance if that鈥檚 how you鈥檙e deciding to buy your car and take any deposits remotely 鈥 so all you have to do is kick back and relax.
Is buying a car online safe?
Don鈥檛 worry, buying a car remotely is completely safe. In fact, it comes with extra protections over buying a car from a dealership.
Under UK law, if you buy a car 100% remotely, you鈥檙e covered by the Consumer Contracts Regulations. This includes online, or over the phone.
Most notably of these is a right to cancel your order, without question, within 14 days of receiving it with a full refund issued. You wouldn鈥檛 get this if you bought the car from the dealer in person.
You can only benefit from this if you haven鈥檛 stepped foot in the retailer, though. If you鈥檝e been there to pay a deposit or fill in any paperwork, you won鈥檛 be guaranteed a full refund 鈥 rather, you鈥檒l be bound by the terms and conditions set by the dealership.
On top of that, you could be restricted by how many miles you can cover in that time. Again, this will be covered in your terms and conditions, so have a flick through before committing to anything.
If you buy a car through carwow, you鈥檒l be able to see which dealerships are offering services like remote electronic signing of paperwork over email rather than in person. You鈥檒l see these in your offers, so don鈥檛 worry about having to commit to a purchase before finding out.
What kinds of new cars can I buy online?
Depending on the vehicles the retailer is able to sell you, you鈥檒l be able to buy one of up to three types of car online:
Built to order
Just as it says on the tin, these are brand-new cars that have been built for you to the exact specification you鈥檝e asked for it in. This takes longer than buying cars already in stock do, particularly so at the moment with a worldwide shortage or components as a result of the coronavirus outbreak.
Dealer stock
Dealer stock cars are brand-new vehicles that are pretty much available immediately. These are already built and ready to go from a storage depot, but it does mean configurations are at the mercy of manufacturers 鈥 meaning you might not find every option you want ticked. Specific paints may be a little harder to come across, too.
You will be the car鈥檚 first registered owner when you collect it, as dealer stock cars aren鈥檛 registered until after they鈥檙e ordered by the retailer.
Nearly new/pre-registration
As you may have guessed, nearly-new cars are cars that have been slightly used but not as a customer vehicle. These are generally pre-registered, and are often used as a test drive demonstrator so they鈥檒l have a few miles on them.
This does mean you won鈥檛 be able to change the spec, and you鈥檒l be the second registered owner of the car, but they do tend to be more affordable than dealer stock or brand-new cars.
If you鈥檙e buying through carwow, you鈥檒l be able to see nearly-new/pre-registered cars among your offers if you wish.
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Consumer Contracts Regulations
The Consumer Contracts Regulations are an important behind-the-scenes part of distance car buying. Below, you鈥檒l find out how these rules affect you when you鈥檙e buying a car without visiting a dealership.
What are the Consumer Contracts Regulations?
The Consumer Contracts Regulations are rules that dictate how much information you鈥檙e provided with when you鈥檙e shopping around for a product, and what rights you鈥檙e entitled to. This is especially important with a brand-new car, as it will almost certainly be one of the most expensive purchases you鈥檒l ever make 鈥 perhaps just coming second to your house.
What consumer protections do I have?
As well as guarantees on the info you鈥檙e provided (like the car鈥檚 features and its price including taxes), the Consumer Contracts Regulations also give you a temporary cooling-off period if you change your mind if you buy a car remotely 鈥 typically online or over the phone.
Under these rules, you鈥檙e able to cancel your order with no questions asked from the moment the order is placed, up to 14 days after you receive the car you鈥檝e purchased. The guidelines also allow the deposit you placed when ordering the car to be refunded. However, while some car dealers are offering full deposit refunds, the exact amount you鈥檙e entitled to get back will depend on the terms and conditions of the contract you signed 鈥 so it鈥檚 worth having a flick through them.
The Consumer Contracts Regulations also allow the trader to recover some of the costs if you鈥檝e used the car 鈥渂eyond what is necessary鈥 鈥 if you鈥檝e racked up loads of miles on it by driving it with no destination within a 14-day period before you decide to return it, for example. There may also be additional charges if you arrange for the car to be collected from your home address, rather than you visiting the dealer and handing over the car in person.
Do these protections apply if I鈥檝e bought a car in a dealership?
While you鈥檙e still entitled to being properly informed about the car before you purchase it, you鈥檙e only able to benefit from that cooling-off period law if you buy the car 100% remotely. If you pay for the car at the dealership, it鈥檚 recognised under the regulations as an 鈥渙n-premises contract鈥, rather than an 鈥渙ff-premises contract鈥, so the order cancellation and refund options don鈥檛 apply.
In fact, you lose the right to any of those entitlements if you visit the dealership at any stage of the car-buying process. This includes signing the necessary paperwork, paying the deposit and even collecting the car from the showroom premises.
My consumer rights when buying a new car
A new car will be one of the most expensive things you鈥檒l ever buy, so it鈥檚 important that you鈥檙e covered if things go a bit wrong. Here鈥檚 carwow鈥檚 guide on some of the protections you鈥檒l have when you鈥檙e buying your next new car.
What happens if I buy a car that鈥檚 faulty?
If the car you鈥檝e bought develops a fault within the first 30 days of ownership, you are entitled to return the car to the dealer and receive a full refund under the Consumer Rights Act. However, it鈥檚 best you should only push for the refund if there鈥檚 a major fault with the car, as the dealership are likely to be able to sort out any minor issues under the car鈥檚 warranty.
You also have some protections after those 30 days are up. While you won鈥檛 be automatically entitled to a refund, you can ask the dealer to either repair or replace your car if it develops a fault within the first six months of ownership. If the dealer can鈥檛 repair or replace it, you can then ask for a refund, or have a price reduction if you decide you want to keep the car despite the issue.
It鈥檚 still possible to have your car repaired or replaced after those six months, but only if you can prove the car was sold to you as faulty. That said, you may be able to have your car repaired by the dealer under the manufacturer鈥檚 warranty. While the exact terms vary between car makers, it should cover parts on a car that don鈥檛 wear out with general use 鈥 for example, it鈥檚 unlikely to cover replacement windscreen wipers, brake pads and tyres under warranty.
What can I do if my car is delayed?
While you鈥檙e well protected in the event that your new car doesn鈥檛 work as advertised, this isn鈥檛 the case for postponement of its delivery. As the possible reasons for this (such as production problems and shipping delays) are generally outside of the retailer鈥檚 control, there鈥檚 very little you can do to hold them to account.
What you are able to do will depend on the terms and conditions of the contract you signed 鈥 for instance, if the paperwork explicitly says your new car will be delivered in a timely manner, you may be eligible for some compensation. While they鈥檙e not legally obligated to do this, the dealer or the customer services department at your new car鈥檚 manufacturer may be able to offer you a goodwill gesture to make up for the inconvenience too.
Do I have any protections if I buy a car with a credit card?
If you do opt to buy a new car with a credit card, you will have an extra layer of protection, in the form of Section 75 of the Consumer Credit Act. In simple terms, it means the credit card company is just as liable as the retailer for providing you with what you bought 鈥 which is ideal if, for example, the dealer you鈥檙e buying the car from goes bust before it鈥檚 delivered.
In order to make a Section 75 claim, you will need to have spent at least 拢100 and no more than 拢30,000 on your credit card. As the legislation covers the value of the car you鈥檙e buying, rather than how much credit you used, it also means you鈥檒l be recompensed even if you only used the credit card to pay for the car鈥檚 deposit.
It鈥檚 not all rosy with buying cars on credit, though. Depending on the dealer you鈥檙e buying a car from, you may be limited on how much you鈥檒l be able to pay using a credit card. The credit limit on your card is also something you鈥檒l need to consider, as will the interest repayments 鈥 depending on your card provider鈥檚 interest rates, a bank loan or a finance agreement may work out more affordable.
What happens if the dealership goes bankrupt before I get my new car?
If the dealership goes out of business and ceases trading after you鈥檝e paid your deposit but before you get your car, your options are limited 鈥 there will be a whole line of creditors ahead of you in the queue to try and get their money back.
Still, the threat of dealerships closing as a result of the coronavirus pandemic has receded a bit because of the furlough scheme. But, if you pay as much of the deposit as you can with a credit card, you鈥檒l have that Section 75 protection, as described above.
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