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How to Negotiate a Factory Order Car

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To negotiate a factory order car, you’ll need to set a budget, decide on your car’s specs on the factory website, then take your request to a dealer to negotiate a final price. 
  • Ordering a vehicle directly from the factory can be a great option if you’re looking for a customized car or specific features.
  • The negotiating process for a factory-order car takes a little more effort than walking into a dealership and requesting a model off the dealer’s lot.
  • How much negotiation room you have with a factory-order vehicle depends on the car manufacturer.

Can you negotiate the price on a factory order car?

Just because you’re ordering a car directly from the factory doesn’t necessarily mean you have to pay the full manufacturer’s suggested retail price, or MSRP. 
One of the pluses of buying a car from a dealership is the opportunity to negotiate a lower purchase price. But if you’re trying to order a new vehicle directly from a factory and don’t have the sticker price in front of you, that doesn’t mean your negotiating power is gone!
Negotiations on factory order cars do take place, and since car buying is one of the bigger purchases you’ll make in your life, it’s in your best interest to ensure you’re getting the best car deal possible. 

Why customers order cars from factories

Thanks to ongoing supply shortages, the chip shortage, high demand, and shipping delays, buying a car anywhere right now is complicated. With fewer models to choose from at the dealership, more customers are now going straight to the factory source. 
One of the major benefits of getting a factory order car is that you can further customize your vehicle if you want to. 
If you’re arranging a special order from a local dealer, on their side, they’ll typically have the benefit of making some money on a vehicle they don’t have to pay to store and maintain.
However, there can be some drawbacks to factory orders, too: At a dealership, car buyers have the chance to test drive a vehicle and inspect it inside and out before settling on the one you want. You might not have the opportunity to do so if you're placing a factory order and the vehicle isn’t currently in stock. 
If your preference is to see and drive a car before buying it, you could also check with a dealership to see if they could get the vehicle you’re looking for from another location before opting for a factory order.
After you place your order, you could experience a long wait time before you can finally get behind the wheel of your factory-order car. 

How to order a car from a factory

How ordering a car directly from the factory works will vary depending on the manufacturer, and not all of them will sell directly to a consumer.
For automakers like
Tesla
, you won’t find many obstacles for ordering online, but many others will still require that you place your order through one of their dealerships. 
In other cases, you might be able to place your initial order online but will need to follow up somewhere. 
Some manufacturers might not just limit where you can place your orders, but when. For example,
Honda
and
Toyota
both order vehicles quarterly. 

Steps to negotiating a factory order car price

While car-ordering procedures will vary from manufacturer to manufacturer, if you’re ordering directly online from a manufacturer like Tesla, the price of the vehicle may be fixed, meaning you’ll have less opportunity for negotiation.
In these cases, you’ll typically place your online order, pay a reservation or order fee, then wait for your vehicle to arrive.
You’ll usually have more room to negotiate a factory order through a dealership. Just like you might if you were buying a car the traditional way, you can also gather quotes from multiple dealerships before settling on a factory order. 
Here are some general steps that the negotiation process with a dealership often involves:
  • Get your finances ready: Get an idea of what you can afford for a down payment and/or monthly payment, check your credit score, and get approved for financing if you’re planning to use a
    car loan
    to purchase your vehicle
  • Do some research: You can use tools like Edmunds or Kelley Blue Book to get a better idea of your vehicle’s market and trade-in values so you’re prepared for negotiation
  • Start car shopping: Design your car via the manufacturer’s website, then print off the final invoice price
  • Visit the manufacturer’s local dealership (you may need to set up an appointment first) and bring your printed build and price sheet with you when you talk to the car sales rep
  • Explain you’re looking to custom order a car: Ask for their out-the-door price, or the total cash price you’d pay for the vehicle, including fees
  • Negotiate with salesperson
    however you see fit
  • Consider any dealership counteroffers: If you’re not getting the deal you thought you could or the vehicle is less affordable than you expected, don’t feel pressure to follow through with the deal
  • Wrap things up: Sign paperwork, get copies, and pay your deposit
It’s ordered! Now, you’ll just have to wait (very) patiently for your vehicle to arrive. When it does, you can negotiate a trade-in for your current vehicle.
Pro Tip: Make sure your purchase agreement includes the final sales price you agreed on and is signed by both you and the sales representative. 

Other considerations for factory order cars

Consider your timing

Placing a factory order on a car can mean months of waiting for it to arrive. That means you’ll want to plan accordingly when it comes to selling your used car or giving back your lease.

What if you change your mind?

As you continue waiting for your car to be delivered, if you change your mind in the meantime, you may not be able to get your deposit back. It’s always a good idea to make sure your deposit is refundable if possible.

Get multiple quotes for more negotiating power

If you’ve tried negotiating at one dealership but weren’t happy with their counteroffers, don’t hesitate to reach out to other dealerships to get quotes on comparable vehicles. It’s possible you could find a better deal elsewhere, or you could bring those quotes back to the original dealership to take another crack at getting an even lower price.
You also have the option of waiting to place your order when the car dealer of your choice is offering rebates or other incentives to lock in the best price possible.

Check for updates on your order from the dealership

Once your order’s been placed, your dealer should also give you periodic updates about the status of your order, but you can also contact them directly to check on it if you need to.

Red flags when ordering a car from a dealership

Unfortunately, some car dealerships aren’t as ethical as others. If you’re arranging your factory order car through a dealership, there are some practices you’ll want to look out for. 
One of the few ways to lock in your factory order car’s price is to have a buyer’s order signed by both you and a sales manager with the agreed-upon selling price. If a dealership isn’t willing to do this, you might not be able to rely on them to honor the sales price of your vehicle when it arrives. 
The same goes for putting a deposit down on your vehicle. This helps ensure the car is reserved for you. If a dealer isn’t willing to do this, it’s questionable whether they’re truly intending to reserve the order for you. 
Some dealerships forego accepting a deposit so they can sell the vehicle to another customer at a higher price.
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FAQs

Yes! Considering the current mark-up trends across the country, it may be difficult, but you should make your best effort to negotiate yourself some savings wherever you can.
The right time to negotiate on your factory order car is before the order has been placed. In most cases, once you’ve placed your order, signed your paperwork, and placed your deposit, you’ve essentially locked in the price you agreed to pay for the vehicle.
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By Melanie Krieps Mergen
Expert Insurance Writer
Reviewed by Kathleen Flear.
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