These days, you can buy just about anything online, including cars. Thankfully, certain online platforms are available not just to make the car shopping experience more convenient, but also simplify the process of getting a car loan.
Canada Drives, CarDoor, and Clutch are three examples of popular online car-buying platforms that are available for consumers looking to make their shopping experience more convenient and hassle-free. But which one is best?
Let’s compare them to help you determine which resource to use to find and finance your next car online.
Key Points:
- Online vehicle marketplaces are a very popular way for car shoppers to find and buy their next vehicle.
- Buyers can browse available vehicles, compare prices, and get detailed information on the vehicle’s specifications all online.
- Many sources, including CarDoor and Clutch also offer return policies, direct delivery, and financing options.
Who Is CarDoor?
CarDoor is an online vehicle buying and trading platform. Consumers can do their shopping for a car completely online and arrange for auto financing at the same time.
The platform allows shoppers to compare different vehicles side-by-side to help make a more informed purchasing decision. Consumers can even pick their own monthly payments that they are comfortable with, and CarDoor will accommodate their financing accordingly.
How Does CarDoor Work?
Buying and financing a car with CarDoor is easy and simply requires the following steps:
- Step 1: Browse Inventory – Search through CarDoor’s online inventory of vehicles using various filters like make, model, year, and price.
- Step 2: Apply For Financing – Fill out a car loan application directly through the CarDoor platform.
- Step 3: Choose Your Car – Select the vehicle you want to buy and review detailed information about it before making a final decision. You can even request a virtual tour to get a more detailed look at the car.
- Step 4: Have Your Vehicle Delivered – Once approved for your car loan, CarDoor will arrange for the vehicle to be delivered directly to your location without the need to visit a dealership.
Who Is Clutch?
Clutch was founded in 2016 to revolutionize the car-buying experience for consumers. The company helps consumers find and buy good-quality vehicles completely online while avoiding the potentially stressful experience that can often come with shopping for a car at a dealership.
Those looking to sell their car can also use Clutch to sell directly to the company without the need to find a buyer on their own.
How Does Clutch Work?
Here’s a step-by-step guide on how Clutch works:
- Step 1: Browse Inventory – Browse the selection of more than 1,000+ vehicles online using various filters such as make, model, year, and price.
- Step 2: Place Your Order – Place your order and checkout online. You’ll be charged only after your vehicle has been delivered.
- Step 3: Arrange Delivery – Have your car delivered directly to you.
- Step 4: Test The Vehicle – You have 10 days or 750 km to test drive the car before you can return it and receive a refund.
Can You Buy A Car Online With Canada Drives?
Canada Drives is a fintech firm founded in 2010 that helps Canadians get pre-approved for financing online. Once pre-approved, Canada Drives will connect you with local dealerships, and those dealerships will show you cars that you already qualify for.
How Does Canada Drives Work?
Rather than dealing with the stringent lending criteria from your bank or negotiating with the dealership for a lower price on your car, Canada Drives can help you avoid all that hassle. They’ll connect you with several certified car dealers all over the country that will pair you up with a vehicle that meets your needs and price point.
Follow these steps to use Canada Drives to buy your next car:
- Step 1: Get Pre-Approved – Complete an online loan application to see how much you can get pre-approved for. This will help ensure that you only shop for vehicles that fit within your budget. Canada Drives helps consumers of all credit types, including those with bad credit.
- Step 2: Connect With Dealerships – Canada Drives will match you with a suitable dealership in your area that has vehicles within your pre-approved budget.
- Step 3: Buy Your Vehicle – Visit the dealership to take your chosen vehicle out for a test drive and complete the paperwork with the help of the dealership to finalize the transaction.
Best Features: Canada Drives Vs. CarDoor Vs. Clutch
How do Canada Drives, CarDoor, and Clutch compare to one another? Let’s take a closer look at some of the features and benefits of each to help you decide which service to use when it comes time to buy a car.
| Canada Drives | CarDoor | Clutch | |
| Car Financing Offered | Yes | Yes | Yes |
| Warranty | N/A | 90-day/4,000 km warranty | Optional 3-month/6,000 km warrant warranty |
| Test Drive Available | Available at dealership | 10 days | 10 days or 750 km |
| Car Delivery to Door | N/A | Yes | Yes |
| Trade-In | Yes | Yes | Yes |
Canada Drives
Canada Drive’s main features are as follows:
- Get pre-approved. Quickly and easily fill out Canada Drive’s online loan application, and you’ll be pre-approved for a certain amount based on the information you provide in your application.
- Get matched with a dealership. Canada Drives will connect you with a car dealership in your area who will provide you with listings of vehicles that fit within your budget.
- Sell your car. You’ll also have the option to sell your vehicle directly to Canada Drives, allowing you to avoid the hassle of finding a private buyer.
CarDoor
CarDoor’s key features include the following:
- Transparent Pricing. Each vehicle comes with a detailed report on how the price is calculated using current market data.
- Delivered To Your Door. The car you purchase will be delivered to your home without hassle.
- Online Financing. Applying for auto financing can be done quickly and easily through CarDoor’s online financing application system.
- 10-Day Money-Back Guarantee. You’ll have 10 days to test your car out (or up to 750 km, whichever comes first), and if you’re not satisfied with it, you can get a full refund before the 10 days are up.
- 90-Day Bumper-To-Bumper Warranty. Get a free 90-day/4,000 km warranty, whichever of the two comes first.
Clutch
Take advantage of the following Clutch features:
- Vast Inventory. Clutch has more than 1,000+ vehicles in its inventory for buyers to choose from.
- No Charge Until Delivery. You won’t be fully charged for your purchase until your vehicle has been successfully delivered to you.
- Quick Delivery. Your car can be delivered to your home within a few short days.
- Thorough Inspection. All vehicles undergo a thorough 210-point inspection.
- Warranty. An optional 3-month/6,000 km warranty is available for all vehicles, as well as additional extended warranty packages.
- 10-Day Return. You’ll have 10 days or 750 km to test drive your car, and if you’re not satisfied, you can send it back.
- Trade-In Or Sell. Not only do you have the option to trade in your car to reduce the cost of your next purchase, but you can also sell your vehicle directly to Clutch without being obligated to make a purchase. You’ll get an instant online offer to make the transaction quick and easy, with payment on the spot.
Can You Finance A Car Online?
Yes, you can finance a car online through various lenders and platforms, such as the following:
- Dealership Websites: Many car dealerships offer online financing options on their websites.
- Banks And Credit Unions: Many banks provide online car loans, though you’ll likely need good credit to get approved.
- Online Lenders: If you have bad credit, you may have better luck securing a car loan from an online alternative lender. Alternatively, you may consider applying for a personal loan and using the funds to make a cash purchase with the seller, instead of taking out a car loan.
- Third-Party Platforms: Sites like Clutch, CarDoor, and Canada Drives connect car buyers with dealerships and financing options.
Why Buy A Car Online?
There are several reasons why you may want to take to the internet to search for your next vehicle:
- No Sales Pressure: You won’t have to subject yourself to potential aggressive sales tactics that some salespeople may use.
- Convenient Purchasing Process: Browsing, buying, and financing a vehicle can all be done online, which can speed up the transaction.
- Vehicle History Reports: Many online platforms provide detailed reports on the vehicle’s history.
- Return Policies: Some online retailers offer return policies that allow you to test out the vehicle for a few days before you can return it for a full refund.
- Delivery: You can have your vehicle delivered right to your door once you finalize your purchase.
Online Car Buying Statistics
A recent study conducted by AutoTrader found that online car shopping has become very popular among consumers. Here are a few notable statistics that the study found:
- 80% of used car buyers and 60% of new car buyers say online vehicle marketplaces influence their final buying decision.
- 78% of used car buyers browsed an online automotive marketplace an average of 15 times before making their final buying decision.
- 45% of new car buyers browsed an online automotive marketplace an average of 9.4 times before making their final buying decision.
- Roughly 1-in-5 car shoppers initially became aware of the vehicle they bought through an online source.
Tips On Buying A Car Online
If you decide to buy a car online, be sure to consider these tips to help you avoid the pitfalls of online car shopping and score the best deal for you.
Compare Prices
Look for cars of the same make, model, and year as the ones you’re interested in buying and compare their prices from different sellers. A couple of good resources are the Canadian Black Book and CARFAX for information on the current market value of vehicles.
Don’t Rush The Process
Take your time browsing vehicles online. This is not a small purchase. You’ll be committing yourself to a hefty payment when you agree to buy a car, so don’t rush through yourself.
Use A Reputable Website
Use trusted online platforms when browsing vehicles for sale. The three sources mentioned here — CarDoor, Clutch, and Canada Drives — are all trustworthy sources. However, you’ll need to go the extra mile to verify the legitimacy of the specific seller you work with.
Watch Out For Poor Background Checks
Some online sellers might not be very transparent when it comes to the condition of their vehicles. To protect yourself, consider asking a mechanic to inspect the vehicle and run a VIN check with a CARFAX or other similar company to verify the history of the car you’re interested in. You can also request a virtual tour of the vehicle to inspect it more thoroughly compared to photos.
Review The Return Policy
Depending on the source you use to buy your car, a refund policy may be in effect. Make sure you fully understand the terms and conditions of the return policy before buying a car.
Use A Secure Payment Method
Use a secure method of payment and avoid cash transactions.
Bottom Line
When it comes to buying a car online, Canada Drives, CarDoor, and Clutch are the best options for Canadian consumers. So, how do you choose between them? Focus on the vehicles available, warranties, money-back guarantee, and financing options provided to determine which one best meets your needs.
