What online auto purchase sites do
Online auto purchase sites let you buy a car entirely through a website or mobile app, without visiting a dealership lot. The site shows you inventory, handles the paperwork digitally, and arranges delivery to your home or a local pickup point. You still finance through a bank or the site's lending partner, and you still own the title — the site is just the middleman between you and the vehicle.
The major sites operating nationally include Carvana, Vroom, Shift, and Cazoo, though regional dealers and traditional franchises now offer online purchase options too. Each operates differently: some stock their own inventory in local warehouses, others source cars from auctions or trade-ins, and some partner with existing dealerships. The process is faster than traditional buying — typically one to two weeks from purchase to delivery — because the paperwork moves digitally and the car is already inspected and detailed before you see it.
Key Takeaways
- Online sites handle paperwork digitally and deliver the car to you, but you still need to arrange financing through a bank or their lending partner before purchase.
- Most sites offer a return window (usually 7 to 14 days) if you change your mind, though you may pay a restocking fee or mileage charge.
- The car's history report, inspection results, and warranty terms are available before you buy, so read them carefully — you cannot inspect the car in person first.
- Delivery takes one to three weeks depending on distance and inventory, and you will need to complete title transfer and registration after the car arrives.
- Financing terms and interest rates depend on your credit score and the lender, not the site itself, so compare offers before committing.
How the purchase process works step by step
Start by browsing the site's inventory filtered by make, model, price, mileage, and location. Each listing includes photos, a vehicle history report (usually from Carfax or AutoCheck), inspection notes, and the asking price. Read the history report and inspection details — this is your only chance to review the car before it arrives at your door. Look for accident history, title issues, service records, and any noted mechanical concerns.
Once you find a car you want, the site will ask for your contact information and run a soft credit check to show you financing options. You will see loan terms from multiple lenders: the interest rate, monthly payment, down payment required, and loan length. You do not commit to financing yet — this is just a preview. Some sites let you lock in a rate for a set number of days (usually 30 to 60) so the rate does not change while you decide.
When you are ready to move forward, you will complete a formal financing process with your chosen lender. This triggers a hard credit pull, which temporarily lowers your credit score by a few points. The lender then approves or denies the loan. If approved, you proceed to the paperwork stage. If denied, you can explore with a different lender through the site, or you can bring your own financing from a bank or credit union.
After financing is approved, you sign documents electronically — the purchase agreement, loan papers, and registration forms. The site handles the title transfer paperwork on your behalf. You will need to provide your driver's license, proof of insurance, and sometimes proof of address. Once everything is signed, the car is yours legally, and the site schedules delivery.
Delivery, inspection, and the return window
Most sites deliver within one to three weeks, depending on how far the car needs to travel and whether it is in stock. You will receive tracking updates and can usually choose a delivery date within a range. Some sites deliver to your home; others deliver to a local pickup point or partner dealership. Delivery fees vary — some sites include it in the price, others charge $200 to $500 depending on distance.
When the car arrives, inspect it thoroughly before signing off. Check the exterior for dents, scratches, and paint inconsistencies. Look inside for stains, tears, and working controls. Start the engine and listen for unusual sounds. Test the brakes, steering, lights, and wipers. Compare what you see to the photos and inspection report from the listing — if something does not match, photograph it and report it when ready.
Most sites offer a return window of 7 to 14 days if you change your mind or discover an issue. However, returning the car usually costs you: a restocking fee (typically $250 to $500), mileage charges (often $0.25 per mile over a small allowance), or both. Read the return policy before you buy — it varies by site and by state. Some states do not allow return windows at all, so the site's policy may be stricter than the law requires.
Financing through online sites versus bringing your own lender
Online sites offer financing through partner lenders, but you can also bring pre-approved financing from your own bank or credit union. If you use the site's lender, the interest rate depends on your credit score, income, and debt-to-income ratio — the same factors any lender uses. Sites do not set the rate; the lender does. Rates for used cars are typically higher than for new cars, and rates vary widely based on credit.
If you have good credit and a relationship with your bank, getting pre-approved there first is often smarter. You can then tell the site you are bringing your own financing, and the site will work with your lender to complete the paperwork. This gives you leverage: you know your rate before you shop, and you can walk away if the site's lender offers worse terms. Some sites offer incentives (like a discount on the purchase price) if you finance through them, so compare the total cost, not just the interest rate.
If you have poor credit or no credit history, the site's lenders may be your only option. They often work with borrowers who traditional banks turn down, but the interest rates are higher. In that case, focus on the monthly payment and total interest you will pay over the loan term, not just the rate itself.
Warranties, inspections, and what happens if something breaks
Most online sites sell used cars with no warranty, or with a limited warranty of 30 to 90 days covering major mechanical failures. Read the warranty terms before you buy — some cover only the engine and transmission, while others include more components. A few sites offer extended warranties you can purchase at checkout, usually for $500 to $2,000 depending on coverage and length.
Before delivery, the site's technician inspects the car and documents any issues found. You will receive a detailed inspection report listing what was checked and what condition each component is in. This report is your baseline for the return window — if something breaks when ready after delivery, you can argue it was a pre-existing issue and request a return or repair. Keep the inspection report and all photos from delivery.
After the return window closes, you own the car as-is. If something breaks, you pay for repairs out of pocket. This is why the inspection report and return window are critical — they are your only protection against buying a lemon. If a major component fails shortly after purchase, you can try to negotiate with the site, but you have no legal obligation to help you once the return period ends.
Title transfer and registration after delivery
The site handles most of the title transfer paperwork, but you are responsible for completing registration in your state. After the car arrives, you will receive documents to sign — usually a bill of sale, title process, and registration forms. Some sites handle registration for you (for a fee); others send you the documents and you file them yourself at your local DMV or online.
You will need proof of insurance before you can register the car. Most lenders require you to have insurance in place before they release the funds, so arrange this before delivery. Your insurance company will need the vehicle identification number (VIN), which you can get from the listing or the delivery paperwork.
Registration timelines vary by state — some process applications in days, others take weeks. During this time, you can drive the car with the temporary registration or dealer plates the site provides. Do not let registration lapse; driving an unregistered vehicle is illegal. If the site is handling registration, confirm it is filed and follow up if you do not receive your permanent plates within the expected timeframe.
Red flags and common problems
Watch for listings with vague or missing inspection details, or history reports showing multiple owners in a short time — these can signal a problem car. Be cautious of prices that seem too low for the make and mileage; they may indicate hidden damage or a salvage title. Always read the full history report, not just the summary.
Some buyers report receiving cars with undisclosed damage, mechanical issues that appeared after delivery, or delivery delays. The best protection is a thorough inspection report before you buy and a clear understanding of the return policy. If something is wrong, report it when ready — do not wait until the return window closes.
Financing problems can also arise: a lender may deny your process after you have already committed to the car, or your rate may be higher than quoted. Confirm financing is fully approved before you sign final paperwork. If the site or lender changes terms at the last minute, you have the right to walk away, though you may lose a deposit.
Frequently Asked Questions
Can I test drive a car before I buy it online?
No — you cannot test drive before purchase on most sites. You inspect the car after it arrives at your home or pickup point. Some sites partner with local dealerships where you can see the car in person before committing, but this is not standard. Read the site's policy before you buy.
What if the car arrives damaged or not as described?
Report damage or discrepancies when ready, before you sign off on delivery. Take photos and contact the site's customer service. Most sites will repair minor damage or allow a return if the car does not match the listing. You must act within the return window — after that, you own the car as-is.
Do I need to pay sales tax when I buy online?
Yes. Sales tax is calculated based on your state and local rates and is usually included in the final price or added at checkout. Some states allow you to defer sales tax until registration, but you will pay it then. The site will explain the tax treatment for your state.
What happens if I cannot get financing approved?
If the lender denies your process, you can explore with a different lender through the site, or you can bring your own financing from a bank or credit union. If you cannot find financing at all, most sites will refund your deposit and cancel the purchase. Confirm the site's policy on this before you commit.
Can I return the car if I just change my mind?
Most sites allow returns within 7 to 14 days, but you will pay a restocking fee and mileage charges. The total cost can be $500 to $1,000 or more. Some states do not allow return windows, so check your state's rules and the site's policy. Returning a car is expensive, so be sure before you buy.