Effects

• Because of the Internet, dealers are forced to offer aggressive pricing to compete with other dealers and vehicle sales in their area. Often, the lowest price is advertised on the dealer's web page or in other online advertisements. Car shoppers can review numerous inventories from new and used car dealers. Private sellers are also at an advantage, as the Internet allows sellers to reach more people. Shoppers can compare vehicles and research prices to get a good deal without ever leaving home.
  
  

Size

• Just about any business related to car sales benefits from offering Internet-based information, and often do. From banks offering interest rates for car purchases to independent dealers who compete with large dealers, shoppers can find research and purchase information online. Private sellers advertise online, while traditional paid newspaper ads have lost their luster because of free advertising methods on the Internet. Dealer Trend's website reports that in 2006, 80 percent of shoppers began researching online before setting out to a dealership, and many dealers employ an entire Internet sales department for this reason.
  
  

Types

• Dealers advertise and provide information through a business web page. Dealers and private sellers use Carigslist (a free advertising method) and large Internet publications like AutoTrader or Cars.com. Paid advertisers differ by area. Advertisements, paid or free, offer a variety of pictures and research information for shoppers. Car buyers can use online sources like Edmunds and MSN Autos to assist in a car purchase--even the government now provides websites, such as Safercar and Fueleconomy, to help buyers make an informed decision.