Buying a car used to mean spending hours visiting dealerships, haggling with salespeople, and dealing with mountains of paperwork. But that’s all changing. In 2024, more people are embracing online car buying, enjoying the convenience of shopping for their next vehicle from the comfort of their homes. Whether you’re looking for a new or used car, the rise of online platforms has made the process simpler, faster, and often more transparent.
If you’re a dealership or car brand, this shift is an opportunity. Offering your customers a seamless online buying experience can help you stand out. But understanding why so many consumers are moving to digital car shopping—and how you can meet them there—requires a closer look at the changing car-buying landscape.
The Evolution of Online Car Buying
From Dealerships to Digital: A Gradual Shift
Traditionally, car buying was a process built around physical dealerships. Buyers spent time test-driving vehicles, negotiating face-to-face, and finalizing purchases in-person. This hands-on approach made sense when the digital tools to support a remote buying process were limited. However, as the internet expanded into every area of commerce, car buying began to follow.
In the early 2000s, consumers started using the internet mainly to research vehicles—comparing prices, reading reviews, and even calculating potential loan rates. While much of the early information-gathering moved online, finalizing a purchase almost always involved a trip to the dealership. There was reluctance from both buyers and sellers to complete such a large transaction entirely online. By 2019, only 7% of car buyers were making full purchases online .
The Pandemic’s Lasting Impact on Car Buying
The pandemic didn’t just speed up the move to online car buying—it changed how people think about buying cars. Before 2020, most buyers still preferred the traditional route: visit a dealership, test drive, and handle all the paperwork in person. Then, the pandemic hit, and everything shifted.
Supply chain disruptions, dealership closures, and safety concerns made the usual way of buying a car harder. As a result, more people explored online options. In 2020, online car purchases jumped to 12%. What was once considered inconvenient or risky now became the only real choice for many buyers.
But it wasn’t just about necessity. As more people tried buying cars online, they discovered it wasn’t just an alternative—it was easier in many ways. You could browse at your own pace, compare prices without feeling pressured, and even arrange financing from your couch. By 2023, 21% of buyers were completing their purchases fully online, with another 71% using a mix of online and in-person steps.
A New Comfort With Digital Tools
For many, the habits formed during the pandemic have stuck around. Once people realized they could handle the whole car-buying process from home, the appeal of online shopping only grew. Buyers liked the transparency. They could see prices upfront, compare different models across websites, and feel like they were in control of the process.
In fact, 78% of people who bought a car online during the pandemic said they were happy with the experience. Many of them now feel confident enough to skip the dealership altogether next time. With services like live shopping and virtual sales agents becoming more common, the process has also become more interactive. Buyers don’t miss out on personal assistance—they can still get real-time advice and answers, but on their schedule, without having to leave home.
This change isn't just temporary. The pandemic gave buyers the push they needed to try something new, but the convenience and control of online car buying are what made many stick with it.
Consumer Trends: Generational Shifts Fueling the Move Online
Millennials and Gen Z are playing a key role in the growth of online car buying. These generations, having grown up with digital technology, are more inclined to shop online for major purchases, including vehicles. The pandemic accelerated this trend, pushing many younger buyers to prioritize the convenience of completing transactions remotely.
Data from recent surveys indicates that younger consumers, particularly those under 40, are significantly more likely to purchase vehicles online than older generations. In fact, buyers under 40 are almost twice as likely to choose an online purchasing method compared to those over 57, with many younger buyers preferring to avoid traditional dealerships altogether. Only 26% of car buyers aged 25-40 purchased from a dealership, compared to nearly 80% of those aged 57 and older.
Source: Progressive.com
This shift isn’t just about browsing online for deals. Younger generations expect a seamless, fully digital experience that includes everything from selecting a vehicle to finalizing financing. With this increased demand for digital-first solutions, the automotive industry has been prompted to adopt online tools to cater to these preferences.
Why People Are Embracing Online Car Buying
The shift to online car shopping didn’t happen overnight. A few key changes in recent years have made this option more appealing to consumers:
- Convenience
Most of us lead busy lives. Car shopping online fits right into that. You no longer have to plan your weekend around dealership visits. Instead, you can browse for cars after dinner or on your lunch break. You can take your time comparing models, researching specs, and finding the best deal—all from your home. - Access to More Options
Online car shopping gives you access to a much wider selection than you’d find at a local dealership. Whether you’re looking for a specific color, trim, or model, the internet opens up a world of possibilities. Instead of settling for what’s available nearby, you can search nationwide or even internationally. - Price Transparency
Negotiating at a dealership can feel intimidating. Many buyers worry they aren’t getting a fair deal. Online car shopping tends to be more transparent. Prices are often fixed or come with fewer hidden fees, so you know what you’re paying upfront. Plus, with the ability to compare prices across multiple websites, buyers feel more confident they’re getting the best deal. - Digital Financing
Handling paperwork and securing financing can be the most stressful part of car buying. But online platforms have streamlined this process. You can now apply for loans, get approved, and finalize details all online. It saves time and reduces the back-and-forth traditionally required in person.
The Technology Enhancing Online Car Buying
Live Shopping and Virtual Sales Agents: Personalized car buying experience, Anytime, Anywhere
As more consumers embrace online car buying, one aspect that still draws buyers to traditional dealerships is the personal interaction they get with sales agents. People want expert advice, real-time answers, and detailed explanations about vehicle features—things they typically associate with face-to-face conversations. Live Shopping and virtual sales agents now offer a way to bring this personalized experience into the digital world, giving car brands a significant edge in the increasingly competitive online marketplace.
Live Shopping is the digital answer to the dealership experience. It allows potential buyers to engage with real sales agents through live-streamed sessions. In these live sessions, agents walk buyers through the details of a vehicle, pointing out its unique features and demonstrating how systems like infotainment, safety, and driving modes work. What sets live shopping apart is the ability for customers to ask questions in real time. Whether they want to see a specific part of the car up close or clarify a technical detail, buyers can get answers instantly, just as they would at a dealership.
For car brands, this isn’t just about replicating the dealership model—it’s about enhancing the buying experience by offering convenience without sacrificing the personal touch. Buyers can join these sessions from anywhere, meaning a brand can reach customers at home, at work, or on the go. It’s an opportunity to meet buyers where they are, while still giving them access to the expertise they value in traditional shopping.
Through virtual sales agents, car brands can engage with potential buyers using one-to-one video calls, bringing the dealership experience directly to the customer. This isn’t a typical chatbot or pre-recorded video. It’s a real person on the other side of the screen, ready to walk buyers through features, answer specific questions, and help them feel confident in their purchase decision. For example, if a buyer wants to see how the trunk space of an SUV compares with their current car, the virtual sales agent can demonstrate it in real time.
This kind of face-to-face interaction adds a human element that’s often missing in online transactions. Buyers don’t just want information; they want to feel supported. Onlive.Site’s platform allows them to ask follow-up questions, see demonstrations of specific features, and get tailored advice on financing—all without the pressure that can sometimes come with in-person dealership visits.
For car brands, using a platform like Onlive.Site allows them to create a seamless digital experience that matches the growing demand for online car shopping while maintaining the personal touch that consumers still value. This isn’t just about keeping up with digital trends—it’s about offering buyers the reassurance and guidance they need to make confident decisions, which ultimately drives sales and builds trust.
Augmented Reality (AR) and Virtual Reality (VR): Shaping the Future of Online Car Buying
For car brands, AR and VR are no longer futuristic concepts—they're practical tools that are reshaping the car-buying experience. As the industry moves toward more digital-first approaches, one of the biggest challenges remains replicating the sensory, hands-on aspects of a traditional dealership visit. Buyers want to see the car in person, feel its size, and visualize how it fits into their lives. This is where AR and VR come in, offering car brands a unique opportunity to bridge the gap between online convenience and in-person interaction.
Augmented Reality (AR) lets potential buyers place a virtual, 3D model of the car directly into their real-world environments. Imagine a buyer using their smartphone to "park" a new sedan in their garage or driveway. This immersive experience allows consumers to interact with the vehicle in ways that go beyond static images, giving them a better sense of its size and presence. For car brands, this feature not only enhances customer engagement but also reduces friction in the decision-making process. Instead of wondering whether the car fits their needs, buyers can see it firsthand, virtually.
Virtual Reality (VR) goes even further by creating fully immersive experiences. With VR, customers can take a virtual test drive, exploring every inch of the car’s interior from the driver's seat. They can examine the dashboard, check out the legroom, and even test different features such as the infotainment system. This technology offers a close simulation of the in-person experience, making it easier for buyers to feel confident in their decision without ever stepping foot in a dealership. Car brands that implement these tools are already seeing the benefits. VR has proven to increase customer satisfaction, as buyers can engage more deeply with the product, and brands can cut down on the time it takes to close a sale.
In a report by ABP News, car brands are already using AR and VR in virtual showrooms to allow customers to modify car features, such as changing the color or swapping out accessories. These digital showrooms are interactive, engaging, and a step ahead of traditional dealership models, offering buyers a deeper, more personalized look at their potential purchases. These technologies also reduce logistical hurdles—buyers can take their time exploring the car without scheduling dealership visits.
From a strategic standpoint, AR and VR are also important for long-term growth in the digital marketplace. A Coherent Market Insights study notes that 40% of North American online car platforms are now integrating AR and VR features, and that number is expected to rise. The takeaway here for car brands is clear: AR and VR aren’t just trends—they’re becoming essential tools for staying competitive as the automotive industry becomes increasingly digitized.
Artificial Intelligence and Predictive Analytics: A Tailored Buying Experience
With so many options available, it’s easy to get overwhelmed when shopping for a car online. Artificial Intelligence (AI) and predictive analytics help personalize the process by analyzing your preferences and suggesting vehicles that match your needs. If you’ve been browsing electric cars with spacious interiors, AI will recommend models that fit those criteria, saving you time and energy.
Predictive analytics go one step further by forecasting which cars might offer the best deals or when prices are expected to drop. This takes the guesswork out of the process and helps you make smarter purchasing decisions.
The Future of Online Car Buying in 2024 and Beyond
As the automotive landscape evolves, 2024 presents an unprecedented opportunity for car brands to embrace the growing momentum of online car buying. The future is clear: digital-first solutions are no longer just an option—they’re essential for brands looking to stay competitive. While online car sales still account for a smaller percentage of total automotive sales, this share is expanding rapidly.
A few key trends underline the future of online car buying:
Rapid Growth of the Online Market
Despite the current modest share of online car sales, platforms like Carvana and Vroom have demonstrated remarkable growth, with Carvana selling over 1 million vehicles since it started operations. The online automotive market was valued at $38.1 billion in 2022 and is expected to grow by 5.1% annually. These numbers illustrate a significant shift in consumer behavior, one that car brands must capitalize on
Hybrid Buying Models Are Here to Stay
The pandemic forced many buyers to explore online car purchasing out of necessity, but what started as a temporary shift has become a long-term trend. As of 2023, 71% of buyers are combining both online and in-person elements in their car-buying process, with 21% of all buyers completing purchases entirely online
While the fully digital experience appeals to many, dealerships will continue to play an important role. Consumers still value the ability to test drive vehicles and interact with salespeople in-person for advice. In fact, 95% of in-person shoppers said they are likely to return to a dealership for future purchases. The future, therefore, is not about replacing dealerships but creating hybrid buying models that seamlessly integrate both online and physical experiences
Final Words
The way we buy cars is changing, and it’s clear that the future is digital. With more consumers embracing online platforms, car brands need to adapt or risk being left behind. The growing demand for convenience, transparency, and control means offering more than just basic online tools. Technologies like live shopping and virtual sales agents bring personal interaction into the digital world, while augmented reality and virtual reality offer immersive experiences that help buyers feel confident without stepping into a dealership.
For car brands, this shift isn’t just a challenge—it’s a huge opportunity. By blending the best of online convenience with personal support, dealerships can create a seamless car-buying experience that meets the needs of today’s customers. The message is clear: digital-first solutions are no longer a nice-to-have, but a must-have for staying relevant in the fast-evolving automotive industry. Those who embrace these changes now will be the ones driving growth and shaping the future.
