Northern Caribbean University
Getting Anything Online These Days
Shopping For Automobiles on the Internet
The Consumer Protection Agency
17 Keesing Avenue
As requested, the following is a report on shopping for automobiles online. The objective of this report is to introduce consumers to the basic concepts of integrating the internet into their car buying activity and to educate them on important issues. Overall this report is intended to provide consumers with an independent and objective viewpoint on shopping for automobiles on the internet.
The report is organized into the following sections: Process Overview, Information you can find online, Advantages of shopping online, Changing nature of the business, Comparing information from multiple sources, Understanding what each site is doing and the Leading websites.
The report highlights the convenience of online shopping for automobiles to consumers along with what to expect. The process is relatively simple and has numerous advantages. Consumers are however required to carefully scrutinize the information that follows and pay attention to the recommendations in order to optimise their online automobile shopping experience.
It was a pleasure to be once again selected to carry out this research and provide you with the findings. The opportunity is appreciated.
The Students of Northern Caribbean University
The Research paper on A Survey Towards Online Shopping Behaviour And Buying Intention Of UCTI Student
1 Introduction Malaysia Online culture The internet in Malaysia started in the year 1995 conducted by MIMOS and Beta Interactive Services and rapid growth began in 1996(20,000 Internet user out of a population of 20million has access to internet proven by Beta Interactive Services, 1996) and the number continually grew to 2.6% in year 1998. Existence of Internet has brought new job opportunity and ...
Table of Contents
Findings and Analysis 6
Conclusions and Recommendations 12
Shopping for an Automobile on the Internet
As stated by the business dictionary.com; online shopping is the act of purchasing a product or service over the internet. Initially introduced in the UK to alleviate overcrowding in the shopping malls, online shopping has become very popular over the years. Many persons have found it quite convenient and effective. The greatest advantage of online shopping is not having to wait in long lines and walking from store to store looking for the cheapest price.
In today’s world we can purchase any good or service online and buying an automobile is no exception. Thousands of consumers have arranged the purchase of cars online, and millions more do at least some of their research online before heading to a dealership. Some customers want to save time and money, some want to be armed with as much information as possible before talking to a dealer, while other want to completely avoid the often-uncomfortable experience of negotiating prices with car salespeople.
As a result, a variety of online services have emerged to meet the needs of these consumers. Some compare information on various car models, some connect customers to local dealers to complete the transactions, and others complete nearly all of the transaction details for the customers including negotiating the price.
This report is aimed at guiding consumers on the basic concepts of integrating the internet into their car-buying activities and to educate them about important issues.
The information gathered for this report was ascertained by visiting a variety of car-related websites and reading magazines and newspaper articles on the car-buying process.
Findings and Analysis
The process is relatively straightforward and fairly similar to other online shopping experiences, with two key differences. In general, a consumer identifies the make and model of car he or she wants, and then the online car-buying service searches the inventories of car dealers nationwide and presents the available choices. The consumer chooses a particular car from that list, and the service handles the communication and purchase details with the dealer. When the paperwork is finished, the consumer then visits the dealership and picks up the car.
Process Essay Thesis: The majority of the American population has very little, or no understanding of the used car trade. A simple understanding on when and where to sell, how to get your car ready, writing a classified ad, negotiating, and making a contract. With consumer demand rising and supply constrained by several factors, including the tendency of new-car owners to hang on to them longer, ...
The two biggest differences with online auto buying are that (1) you can’t actually complete the purchase over the Internet (in most cases, you must visit a local dealer to pick up the car and sign the papers, although in some cities, a dealer or a local car-buying service will deliver it to your home), and (2) in most states, it’s illegal to purchase a new car from anyone other than a franchise dealer (i.e., you can’t buy directly from the manufacturer, the way you can buy a Dell computer directly from Dell, for instance).
Information you can find online (not all information is available at all sites)
The information you can find online includes makes, models, colours, options, option packages (often, specific options are available only as part of a package; you need to know these constraints before you select your options), photos, specifications (everything from engine size to interior space), fuel efficiency estimates, performance data, safety information, predicted resale value, reviews, comparable models, insurance costs, consumer ratings, repair and reliability histories, available buyer incentives and rebates, true ownership costs (including fuel, maintenance, repairs, etc.), warranty information, loan and lease payments, and maintenance requirements.
Advantages and Disadvantage of purchasing a car online
Buying a car online has its advantages and disadvantages. Although shopping online allows the buyer the comfort of selecting their new vehicle from the comforts of home it does not allow the purchaser an opportunity to inspect the vehicle before purchasing. Let us take a few moments to analyse the pros and cons of purchasing a car online.
Development of an Online Information System for the University Of Makati – College Of Computer Science. Main Problem: There is no available website dedicated for the College of Computer Science. Specific Problems: a. News and announcement for the college are dispersed through word of mouth. b. The college of computer science cannot be searched through search engines. c. Information on ...
Advantages of purchasing a car online
• Avoiding the hassle of face to face negotiations with a sales person; buying a car at a dealership can be very time consuming and pressuring with sales representatives trying to sell you additional packages to increase his/her sales commission. It is in the best interest of the sales representative to ensure that a customer spends as much money as possible on additional features such as maintenance packages, additional luxury features, trading packages and financing. This can be an unpleasant experience for the consumer especially if they don’t know exactly what car they want to buy and how much they want to spend.
• The ability to get comparison from different dealerships very quickly; the internet allows consumers to get price quotes from different dealers within minutes. This saves the hassle and expense of driving from dealer to dealer to get price quotations. It also gives the consumer the chance to view a greater variety of vehicles.
• Shopping online can be done anytime; you can search for your dream car at anytime you find convenient. Unlike a dealership that has specific opening and closing hours, shopping online can be done at any time by the consumer.
• Preserves the identity of the consumer; unlike visiting the dealership you are not required to provide information about yourself. This reduces the risk of profiling by the sales representative.
Disadvantages of purchasing a car online
• Does not allow for immediate answers of queries; to have a query answered online you will have to send an email and await a response from the website. While visiting a dealer facilitates face to face interaction thus allowing all your queries will be answered immediately.
• Inability to complete the purchase online; while shopping online is hassle free and convenient. You cannot complete your purchase online as arrangements have to be made with a dealer to have the vehicle delivered.
• Cannot inspect the vehicle before purchasing; the opportunity of carefully scrutinizing an automobile (especially used) online does not exist. Test driving the automobile is also not an option before making a final decision.
According to Oklahomas Official Web Site, Information is a critical State asset. Information is comparable with other assets in that there is a cost in obtaining it and a value in using it. However, unlike many other assets, the value of reliable and accurate information appreciates over time as opposed to depreciating. Shared information is a powerful tool and loss or misuse can be costly, if not ...
• Increased risk of online fraud; anything that is placed on the internet is not secure and because pertinent information is required to carry out the transaction it leaves consumers vulnerable to fraud.
Changing Nature of the Business
Auto manufacturers, dealerships and the auto industry in general have accepted this reality and incorporated the internet and related technology as part of their marketing and advertising efforts. Some of these business entities have embraced the power of the World Wide Web, while others are struggling to keep up with the constant upgrades, developments and latest trends. Becoming aware of internet behavior of auto buyers is important in developing and maintaining cost effective and money making marketing strategies.
The relationship between dealers and third websites (such as CarsDirect.com and vehix.com) continues to evolve. At first the relationship was antagonistic, as some third-party sites and dealers frequently competed for the same customers, however, the relationship is more collaborative in many cases now with dealers realising that some third-party sites already have a wide brand awareness and nationwide audience. As the percentage of new car sales that originate via the internet continues to increase, dealers are more receptive to working with third- party sites.
Compare information from many websites
Consumers shouldn’t rely solely on the information from a single website. Each site has its own way of organizing information, and many have their own ways of evaluating car models and connecting buyers with sellers.
Understand the information each website provide
Some websites will provide information from thousands of dealers, regardless of ownership connections. Others websites such as AutoNation only provides information on cars that are being sold affiliated dealers. A search for a specific model might yield only a half-dozen cars on one site but dozens of cars on another site. Find out who owns the site and what their business objectives are, if you can; this will help you assess the information you receive.
Consumers can check out a wide variety of websites, some of which are full-service operations, offering everything from research to negotiation; others provide specific and limited services. For instance, CarsDirect (www.carsdirect.com) provides a full range of services, whereas Carfax (www.carfax.com) specializes in uncovering the repair histories of individual used cars. The table below lists some of the leading car-related websites.
Chad L. Sc roble 10/22/96 English 110 Explanatory Rev. Behind the 'Internet's cent One of the booming businesses today is any business involving the internet. I recently interviewed one Micheal Schmelder, an employee of Peripherals Plus Technologies (PPT), to broaden my perspective on this subject. PPT is one of the largest companies in Lancaster that serves as computer consultants, but most of ...
Conclusions and Recommendations
When purchasing an automobile online there are pros and cons to be weighed in order to ensure maximum efficiency, effectiveness and the desired result. The featured sites present consumers with an opportunity to become fully knowledgeable before talking to a dealer and avoid the often-uncomfortable experience of negotiating prices with car salesperson. Some of the featured sites compare information on various car models while others search only a single dealership network of affiliated dealers. Some sites also connect consumers to the local dealers to complete the transaction and in cases go as far as completing the transaction details.
There are a host of new tools available for automobile buyers, but figuring out where to go and what to expect may be tedious. We therefore suggest Yahoo!Autos (http://autos.yahoo.com), CarsDirect (www.carsdirect.com), eBay Motors (www.motors.ebay.com) and The Car Connection (www.thecarconnection.com) for an easy to manoeuvre and objective experience.