Car Buying, Without the Test Drive
Some consumers are buying and leasing cars without first getting behind the wheel.
Anyone who's ever considered buying a car online has inevitably wondered, "But how will I take a test drive?" The answer, increasingly: You don't.
Thanks to the wealth of car information now online, a small but growing number of car buyers are choosing to skip the traditional test spin. Instead, they are buying and leasing cars without ever first getting behind the wheel. This year, about 6.5% of new leases were so-called blind transactions, more than double the rate in 2007, according to LeaseTrader.com, an online car marketplace. Car dealerships and web sites say they're seeing a similar trend. "There's a lot less chatter about test drives these days," says Myril Shaw, vice president of sales for CarWoo.com, an online marketplace that connects buyers with local dealerships.
Not that long ago, this would have been unthinkable. But consumers can now learn nearly everything about both used and new cars online -- including comprehensive vehicle reports, customer and expert reviews, even the average prices paid for certain models by zip code -- without ever setting foot on a dealership or used-car lot, says Phil Reed, consumer advice editor for Edmunds.com. A number of sites, including Edmunds.com, Kelley Blue Book and AutoNationdirect.com, also allow you to get quotes from a salesman remotely (read: on your turf, not his) to negotiate sales prices and trade-in deals. And hopefully get a better deal than at the lot, says Reed, adding: "A test drive almost seems unnecessary."
That's especially true for new cars, say car pros. Unlike with used cars, when a test drive may reveal hidden problems or quirks, car buyers are increasingly likely to trust that a new car will run pretty nicely, says Sergio Stiberman, chief executive of LeaseTrader. Brand loyalty plays a role too: "Mercedes is good, I don't have to [test drive it]. I've always owned Toyotas, I don't need to do that."
Skipping the test drive can also eliminate what for many people is the most annoying part of car shopping -- the hard sell. Already, roughly a third of buyers who purchase their cars over the internet say they do so to avoid face-time with car salesmen, reports Edmunds.com. A growing number of web sites promise to act as middlemen. For example, eBay, which lets sellers list up to 30 pictures and provides free vehicle history reports, helped sell $2.2 billion worth of vehicles during the second quarter, about the same as a year earlier.
Of course, just because buying blind keeps you out of a cars salesman's office doesn't mean it's smart. Cars, after all, are one of the few big-ticket purchases that can't be returned. Buying sight unseen raises the chance you'll get stuck with a lemon, Reed says. Worse, some vehicles have been "title washed" to obscure damage from a flood or an accident. And while that's illegal, it's a lot harder to spot over the Internet than it is person.
Most auto experts still recommend an extended test drive on a variety of roads for both new and used cars. For the latter, Reed also recommends having the car inspected by a local mechanic before making a purchase. If you're leasing a car, make sure the leasing company's contract allows to you switch vehicles; many will, says Stiberman. Even if you're determined to avoid the dealership, Shaw says, there are other ways to test the ride. Take a friend's car for a spin, or request a specific model the next time you rent.
This story posted by LeaseTrader.com, the automotive service company that lets people transfer out of their Car Leases early. If you're looking to swap a lease or transfer out of your car lease, please visit www.leasetrader.com