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More car dealers are offering online services, but there isn’t much integration with financing, trade-in values and other services consumers want online. More car dealers are offering online services, but there isn’t much integration with financing, trade-in values and other services consumers want online. (Adam Gault / Getty Images) As bricks-and-mortar stores around the country close up and more retail sales shift to the internet, the auto industry seems stuck in the past, plodding along in much the same way that it has for decades. If you want to buy a new vehicle, you still have to schlep to a dealer, negotiate a price and sign a stack of documents before you drive away. With the notable exception of upstart Tesla Motors , which offers a completely online process, shoppers can start the buying process online, but ultimately they have to visit a dealership to close the purchase. One reason is that manufacturers who have franchised dealers — everyone except Tesla — cannot compete with their dealers by selling directly to consumers either online or through company-owned stores, like Tesla or companies such as Apple. That is the law in all 50 states, so buying from a dealership is the only avenue. Though some consumers clamor for an entirely online experience, the traditional trek to a dealership is still the easiest route. A substantial portion of car buyers rely heavily on the services dealers provide, such as accepting trade-ins, arranging financing and having a selection of vehicles in stock they can see and test drive. "Buying online is the path of least resistance" for a new-vehicle shopper who is not trading in a car and has good credit, so they are a cinch to get approved for a loan, said Mathew Desmond, head of the North American automotive consulting firm Capgemini. But most customers will have a trade-in or need to discuss financing, which isn't well-integrated into manufacturer and dealer sites, Desmond said in a telephone interview.
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