Big changes are coming to every industry these days and car buying is no longer an exception.
Car dealerships might soon be a thing of the past. Maybe.
The Problem With Dealerships
Although the industry is changing, the current model isn’t going anywhere without a fight.
Traditional brick-and-mortar car dealerships aren’t owned by car manufacturers AND they’re protected by state franchise laws that defend them from change. Direct-to-consumer car brand Tesla has made inroads to flipping the dealership model, but they’ve also been outright banned in Texas, Michigan, West Virginia, Utah, Arizona, and Connecticut
Protective laws make it illegal to sell new cars unless you’re a dealership. It’s also illegal to open a new dealership in another dealership’s territory. Makes sense too, when states traditionally get 20% (!) of their sales tax revenue from dealerships.
What The New Era Looks Like
Thanks to the major push by Tesla and the freedom offered by the internet, car buyers and sellers have been springing up like crazy.
Where you used to have to travel to the dealership only to be pressured by pushy car salesmen (that’s a stereotype for a reason), the future looks a bit brighter.
Browse cars 100% online, save money by avoiding the dealership middlemen overheads and fees, and in many cases, have your new car delivered right to your door.
Here’s some of the competition:
The New Kids On The Block
Things may be moving online, but it’s still a good idea to shop around. And dealerships aren’t down for the count just yet.
The industry disrupter. The online car buying (and selling) service. The car vending machine.
Carvana buys and sells used cars using a rigorous inspection process and proactive customer service. You can pick your car up at a local vending machine or they’ll deliver it the next day to customers within 100 miles.
They are 100% online and offer a 7-day test drive to decide whether you want the car or not.
They also offer a 360-degree view of the cars online to see what normal pictures might not show.
Carvana also offers financing with transparent rate calculators so you know what you’re getting into.
JoyDrive is the car dealership response to Carvana. A connected network of vetted dealerships that sells used AND new cars 100% online with free delivery.
If the dealership experience is the problem, JoyDrive hopes to fix that without cutting the dealerships out completely.
They boast a bigger inventory than Carvana, but only a 5-day or 250 mile test drive period.
Another used car option. Also 100% online. Delivery anywhere in the lower 48 states.
Vroom even includes trade-in quotes and they’ll pick up your old car when they drop the new one off.
Test Drive: 7 days OR 250 miles.
Another trailblazer, but NowCar focuses on NEW cars, again 100% online
They have a comparison system to help you avoid traditional fees and they’ll deliver your new car across the continental U.S. NowCar Associates are on hand to guide you through the process and ensure transparency.
Test Drive: 5 days or 50 miles. Careful there.
If you’re looking for something a bit more rare or unique, check out Bring-A-Trailer. This online auction house for vintage and otherwise high-priced vehicles has that niche covered.
Cars are reviewed by moderators before posting first, but expect to find everything from a 1962 Porsche Diesel Tractor to a 1981 Porsche 911 Race Car. Or maybe a 1975 VW Westfalia is more your style? A 1972 DeTomaso Pantera? A 1961 Mercedes-Benz 190SL? A 2003 Aston Martin Vanquish?
The list goes on.