Today, personal computer with an Internet connection is commonplace and it is stated that thirty percent of the computers have Internet connections and as such there is a lot of advancement on online transaction. Therefore the use of credit cards is very comfortable to purchase and sell online. But conventionally, if a car dealer needs to complete a transaction, a web site can offer information and cannot be an alternative to a dealer, they feel.

But it is argued that when a house can be sold and bought online why not a car? In a country like India, where buying a car is regarded as the second most important purchase next to a house, online booking of cars can be a catch for two reasons. One is the convenience of buying at the comfort of the home and secondly the discount offered in an online transaction.

The advantages of buying a Tata Nano are many. While purchasing a Tata Nano online, the paper work and the issues relating to the accessories with other hidden costs would be made transparent. It would be a better idea if the car were allowed a test drive at home; teams offering a vehicle to be test driven so that the customer can have a good look at the vehicle. The vehicle should be handed over to the customer only after he or she is entirely satisfied with the condition of the vehicle.

There are some disadvantages too. If the Tata Nano is available to be purchased online, the manufacturer is compelled to invest in online payment, transaction, security, coordination and other infrastructure, which might add to the cost. Online booking allows display of the vehicle at various strategic locations, which would attract the attention of a lot of people inducing them to buy. This would result in more reach.

Some people may not be hundred percent satisfied booking online, rather than walking into a showroom, having a glimpse of all the new vehicles and driving out as a proud owner which online booking might not offer.

The points to be taken into consideration are the mode of payment, whether optional extra fittings can also be booked online and the distance from the showroom to the door of the buyer. The documentation and after sales service process also ought to be simplified.

The company can reduce the distribution cost by deputing one dealer to deliver the responsibility of online bookings in each city. The buyers can show their booking copy and must drive away the car having the dealer as a mere point of contact. To buy things online, the important aspects necessary are the brand name and the confidence on the product, which is very much prevalent for a Tata Nano.