How to Negotiate a Factory Order Car
Sometimes, no matter how far you expand your search, you cannot find the vehicle of your dreams at a dealership. Clearly, the manufacturer makes the car, which is why you see it on their website, but it's nowhere to be found on the dealer's lot.
The disappointment of not being able to find the exact car you want at a dealership leads many people to wonder if they can order a car directly from a factory.
Luckily, you can order a car from the factory, but you'll still need a dealer to do so.
Here's everything you need to know about purchasing a car from the factory and how to negotiate the best price.
Table of Contents
- What is a Factory Order?
- Reasons to Order from the Factory
- Benefits of a Special Order
- Considerations for Factory Ordering a Car
- How Long Does a Factory-Ordered Car Take?
- What if I Can't Wait For the New Car?
- How Do I Order a Car from the Factory?
- How Does Special Ordering Help Me Save?
- Can I Negotiate on the Price of a Factory Order Car?
- Best Car Deals by Category
- Frequently Asked Questions
What is a Factory Order?
A factory order, also known as a special order, is when a car buyer orders the exact vehicle (color and features) they want. Most times, you'll be able to select the details of the vehicle online and then place the order through a dealership or third party. It's important to note, you cannot order the car directly from most major car manufacturers, you'll need a dealer or third party service.
Reasons to Order from the Factory
There are some situations in which it makes the most sense to order from the factory. If you cannot find the color or options from a dealer and really want those exact features, you'll want to order from the factory. Those who use the car for business use or in a fleet of vehicles will often need a certain color to match.
Benefits of a Special Order
There are several benefits of ordering directly from the factory including:
- You get the exact options and colors you want.
- Special ordering could be the only way to get the unique configurations that you are looking for.
- Avoid paying for the features you don't want or need.
- Access to a vehicle with little or no inventory available.
- The dealer may be able to get you a better deal since it's an easy sale for them and they won't have the overhead costs of keeping the car in inventory. You'll be more likely to get a car that's in high demand for a better deal if you can wait.
Considerations for Factory Ordering a Car
Just as there are great benefits to ordering your car from the factory, there are also some drawbacks. Here are some factors to consider:
- The wait time is much longer than buying from a dealership.
- Incentives are applied when the car is delivered, so you will not be able to get incentives from the time you placed the order. Since you won't always know how long it takes to get the car, you can't be sure which incentives will be available.
- You will need to get a trade-in re-appraised upon new car delivery, which means that the value could go down. It's best to keep trade-ins separate from a factory order.
- Special ordering is limited to domestic brands (except for BMW).
How Long Does a Factory-Ordered Car Take?
As mentioned previously, one of the biggest downfalls of special ordering your car is the wait time. It takes significantly longer to get your factory-ordered car than it does to buy a vehicle off of the lot. Typically, it will take 5-8 weeks, but wait times can be as long as 12 weeks in some cases. Unfortunately, you typically will not know what the wait time will be when placing the order.
What if I Can't Wait For the New Car?
There are times when you need a new car immediately, and cannot wait an undetermined amount of time for it. If you are in a pinch due to the situation of your current vehicle or some other reason, special ordering may not be the best option for you. Instead, you should consider compromising on color and some options or drastically expanding your search to other dealerships around the nation. Check out our post for tips on how to buy a car out of state.
How Do I Order a Car from the Factory?
Here are the steps and tips for successful special ordering:
- Decide on the model, color, features, etc. that you want. Consider what's most important to you without getting too carried away. Keep in mind that less popular options won't add to the resale value in many cases and you will not recoup your money for those kinds of choices.
- Plan ahead. Since you know it can take several weeks or months to get a special order car, you'll need to plan carefully if you have a vehicle to sell.
- Go through a third-party service or a dealer to place your order. Read dealership reviews and talk to several options before choosing the one you'd like to work with.
- Negotiate the car price. We will break down negotiation in the next section, but you should negotiate the price of the car as if it were on the lot.
- Confirm a refundable deposit. You will have to pay a deposit when you order, and you'll want to make sure this deposit is refundable.
- Written agreement. Complete a written agreement based on the details you've discussed and ensure it has the correct information before signing.
How Does Special Ordering Help Me Save?
When you special order a car, the dealer will not have to pay insurance and overhead for having the car in inventory. Since the dealer will save on the transaction, they are often more motivated to negotiate on the price of the vehicle. You also avoid paying for unnecessary features which allows you to save even more.
Can I Negotiate on the Price of a Factory Order Car?
Yes! You should absolutely negotiate the price of your special order car. Make sure to negotiate before the order is placed, and negotiate as if the car were on the lot. Research to see what others are paying, and call 5-8 dealers for a quote. Remember that some brands only allow you to take the incentives at the time of delivery, while others will let you lock in rates when ordering and take a lower rate if there is one offered at the time of delivery.
If you are able to wait, factory ordering your vehicle can be a highly beneficial experience, allowing you to get exactly what you want. Be sure you understand the process first and only choose a trustworthy dealer. Negotiate the price of the car and then enjoy our custom vehicle!
Frequently Asked Questions
Should I buy a factory order car?
You can get exactly the color and options you want when you order from the factory, and you can often get a lower price since the dealer will not have finance charges. However, you usually can only get the incentives offered on the day of delivery and have to wait several weeks to months to get the vehicle.
Can I buy a car direct from the factory?
15% of buyers special order their vehicles. Technically, you cannot order the vehicle directly, you'll need to do so through a dealer.
Can I negotiate on a factory ordered car?
Yes, you should treat the negotiation just like any negotiation with a dealer. Call several dealerships for quotes and research what others are paying to be sure you get the best price.
Can I lease a special ordered car?
Yes, in fact, special ordered cars often make sense for people that lease. You know exactly when you'll need the car by and can more easily plan ahead to get the vehicle you want.