Buying cars online vs. traditional dealers: Which is cheaper?

Online shopping has yielded big savings for people who opt to stay out of the stores, but what about when it comes to buying a car?

Although some people may prefer to visit their local car dealership rather than use their computer, savings can be found online, according to a new report.

Can you save more buying a car online or at the dealership?

Car search engine iSeeCars.com recently released a study that found people who bought vehicles online saved $185, or 0.8% on average. And some car models led to even more savings.

The site analyzed 2018 sales on more than 9.4 million used cars to come up with the results. Here are the vehicles that provide the biggest online savings, according to iSeeCars.com.

Admittedly, some people may be a little hesitant about making such a major purchase online. But for others, the high-pressure environment of a dealership is just as bad, according to iSeeCars CEO Phong Ly.

“Today’s car buyer wants to spend as little time as possible at the car dealership,” Ly is quoted as saying.

Ly says the best car-buying sites and apps can deliver significant savings, generous return policies and rigorous vehicle inspections.

Clark Howard: Here’s when you should go car shopping

Still, there may be some people who are just more comfortable visiting a car dealer — and that’s OK.

Money expert Clark Howard, who has bought a family car or two (or three), says it’s important that you be able to shop for a vehicle pressure-free. His advice is to check out the dealership after-hours.

“Look at cars when a dealership is closed, so there’s no salesperson to pressure you,” Clark says. “The best way to test drive a car is to rent it for a day or two. It’s the ultimate test drive.”

To learn more about the process of buying a vehicle, read Clark’s step-by-step guides for buying a new car and buying a used car.

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New report: The best deals on used cars under $20,000

Buying a used car in 2019 doesn’t have to be expensive. In fact, there are plenty of vehicles you can get for under $20,000.

The vehicle search engine iSeeCars.com recently released a list of best bargains on lightly-used cars under $20,000, including everything from full- and mid-size models to compact cars and SUVs.

Report: Here are the best used car deals under $20,000

A sticker price under that amount is about right for a new driver, recent graduate or anyone looking to save money on a used vehicle.

To be clear, this is not a list of the best cars for under $20,000, but rather the best deals based on price drops after depreciation. Here are the best used cars for 2019.

iSeeCars.com analyzed more than 4.8 million car sales to identify models with the greatest loss in value after three years. The top 10 vehicles all depreciated more than 1.4 times the 38.2% average for all vehicles.

The list below shows not only the used vehicle, but its price after three years and depreciation figures.

As you can see, many of the best used car bargains under $20,000 are hybrids. iSeeCars.com CEO Phong Ly says there’s a good reason for that.

“New hybrid vehicles are more expensive than their non-hybrid counterparts with the Kia Optima Hybrid costing an additional $4,303,” Ly says. “However, there isn’t a high demand for these hybrid vehicles, and their steep depreciation brings their resale value close to that of their non-hybrid versions.”

Ly says the average price of a three-year-old Fusion Hybrid is only about $200 more than a gasoline-powered Fusion.

However, iSeeCars.com notes that non-hybrid versions of these vehicles also depreciate at an above-average rate due to the overall decline of the sedan market in the United States.

Before you purchase any used vehicle, check Consumer Reports for reliability information. It’s one of Clark’s 7 steps to buying a used car!

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The new cars people love the most in 2019

If you’re in the market for a new car, we have a list you need to see.

You might be familiar with J.D. Power from its car reliability ratings, but each year the company also releases a list of the vehicles that make the people who bought them the happiest.

It’s called the APEAL Study — APEAL stands for Automotive Performance, Execution and Layout — and it’s a great starting point for car shoppers who are looking to make sure they don’t make a purchase they’ll end up regretting.

Study: New cars people love the most

The 2019 APEAL Study brings some good news: Overall, new car owners are more satisfied with their purchases this year than they were in the 2018 survey.

“Every automaker is producing vehicles that consumers like, but some of them are doing it at a higher level than others,” said Dave Sargent, Vice President of Global Automotive at J.D. Power. “Satisfaction with new technology is improving.”

While luxury brand Porsche is the highest-ranked manufacturer overall with a score of 891, some mass market brands also performed well. Ram (scoring 851), Dodge (848), MINI (835), Volkswagen (829) and Ford (828) lead the way in that category.

As far as individual models go, here are the top non-luxury vehicles in several popular categories:

For more top picks (including luxury models), see the full J.D. Power study here. And read Team Clark’s new car buying guide if you’re shopping for a new set of wheels!

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