Still, fewer than 5 percent of all cars sell through the Net. Blame it on the auto industry, which is still dominated by brick-and-mortar dealers before whom car makers bow and tremble. To be sure, dealers provide valuable services: repairs and maintenance, trade-ins, test drives, financing. Even when you buy on the Web, a dealer typically delivers your wheels.

But many states have franchise and dealer licensing laws that restrict direct Internet car sales. For example, CarsDirect.com does not do business in Alaska, Arkansas, Hawaii, Kansas, Montana, Nebraska, Oklahoma, Texas, Utah, and Wisconsin.

Despite restrictive laws, consumers are increasingly turning to the Web for finding and buying their new rides. The Net can help with virtually every part of the process.

Kelley Blue Book (www.kbb.com) is the most popular site for scouting new and used car prices, as well as finding financing and insurance information. Edmunds.com offers similar resources and displays a "true market value" figure for cars. This figure represents a good deal for the buyer and a fair profit for the dealer, which can help customers avoid aiming too low—and let you know when dealers are gouging you in sales negotiations. Consumer Reports Online (www.consumerreports.org) requires a subscription fee but provides quality test data and buying advice.

Car buyers are turning to the Internet because dealers aren't forthcoming, suggests Chris Denove, a partner at J.D. Power and Associates. "Consumers continue to use the Internet as a means of leveling the playing field between themselves and dealers," he says. "The online buying services allow the consumer to get a bottom-line price from a dealer without having to negotiate back and forth. As long as dealers continue to make it difficult for consumers to get a price on their vehicle, online buying services will continue to be an attractive alternative."

Once you're in the ballpark for pricing, the Web can also manage the haggling so that you don't have to stare at a salesman's predatory smile during negotiations. At Autobytel.com, for example, you apply for a car—including specifics like colors and options packages—then receive a purchase request number. Within 24 hours, an accredited local dealer contacts the customer about the request.

Then it's off to the showroom with a preagreed price. Referring customers to dealers doesn't really change the economics of car buying enough to deliver a substantial savings over hard-nosed bargaining. But it relieves much of the pressure of making up your mind and coming to an agreement on the spot.

Start by visiting Autobytel.com or CarsDirect.com. With CarsDirect you can see the price before you have to submit any personal information. Plus, the site carries a price guarantee: If you find the same vehicle for a lower price within three days of purchase, CarsDirect will refund the difference.

At reverse auction site Priceline .com, you name your price, which a dealer may or may not accept. At Car Bargains (www.carbargains.com), members submit a vehicle request and five or more dealers bid for your business. For those squeamish about facing down a salesperson, CarQ (www.carq.com) charges $175 and up to get the best possible price on the buyer's behalf.

Manufacturer sites like Ford Motor Co. (www.ford.com) and GMBuyPower (www.gmbuypower.com) let you "build" your own car. A January 2001 Forrester Research report predicts that by 2010, 21 percent of new car purchases will be built to order, up from 5 percent today.

But not everyone thinks the auto industry will embrace build to order. "We're of the view that it's a long way off and that it's probably a niche market in the end," says Bob Brisco, CEO of CarsDirect. "Most people do want their car soon and don't want to wait."

A Tire Kicker's Guide

The top car-buying sites on the Web.
Site Verdict
CarsDirect.com 5 Stars Price your dream machine, finance it, and have it delivered.
Autobytel.com 4 Stars Great for research, but you've got to spill personal information before you get a price.
Carpoint.com 4 Stars Microsoft's service sells cars, but the best part is the repair shop finder.