Purchasing a new car can be an exciting experience, but it often comes with a hefty price tag. One option that some buyers consider to save money is ordering a new car directly from the factory. But is this approach really cheaper? In this article, we’ll delve into the details of ordering a new car from the factory, exploring the potential cost savings, the process involved, and what factors to consider before making a decision.
Understanding the Process of Ordering a New Car from the Factory
Ordering a new car from the factory, also known as a “factory order,” allows buyers to customize their vehicle to their exact specifications. This process typically begins with a visit to a local dealership, where the buyer works with a sales representative to configure their desired car. The order is then sent to the factory, where the vehicle is manufactured according to the buyer’s specifications.
Benefits of Factory Ordering
One of the primary benefits of ordering a new car from the factory is the ability to customize the vehicle to meet specific needs and preferences. Buyers can choose from a wide range of options, including exterior and interior colors, upholstery materials, and advanced technology features. Additionally, factory-ordered cars are often built with the latest advancements in safety and performance, as they are manufactured to the buyer’s exact specifications.
Potential Drawbacks of Factory Ordering
While ordering a new car from the factory offers several benefits, there are also some potential drawbacks to consider. One of the main disadvantages is the longer waiting period required for the vehicle to be manufactured and delivered. This can take several weeks or even months, depending on the complexity of the order and the factory’s production schedule. Furthermore, changes to the order can be challenging and costly once the manufacturing process has begun.
Cost Savings of Ordering a New Car from the Factory
So, is ordering a new car from the factory really cheaper? The answer depends on several factors, including the type of vehicle, the options chosen, and the buyer’s negotiation skills. In general, factory-ordered cars can offer significant cost savings compared to purchasing a car from a dealership’s inventory.
Savings from Avoiding Markup
One way that factory-ordered cars can save buyers money is by avoiding the markup that dealerships often add to the price of their inventory vehicles. When a dealership purchases a car from the factory, they typically add a markup to the price to cover their costs and generate a profit. By ordering a car directly from the factory, buyers can avoid this markup and potentially save thousands of dollars.
Savings from Customization
Another way that factory-ordered cars can save buyers money is by allowing them to customize their vehicle with only the features they need. When purchasing a car from a dealership’s inventory, buyers may be limited to the options that are already available on the lot. By ordering a car from the factory, buyers can choose only the features they want, avoiding the cost of unnecessary upgrades and options.
Factors to Consider When Ordering a New Car from the Factory
While ordering a new car from the factory can offer several benefits, including cost savings, there are also some important factors to consider before making a decision. These include the waiting period, order changes, and pricing and negotiations.
Waiting Period
As mentioned earlier, one of the main drawbacks of ordering a new car from the factory is the longer waiting period required for the vehicle to be manufactured and delivered. Buyers should carefully consider their needs and whether they can afford to wait for their new car. It’s essential to plan ahead and order the car well in advance to ensure that it arrives when needed.
Order Changes
Once the manufacturing process has begun, changes to the order can be challenging and costly. Buyers should carefully review their order and ensure that it is accurate before submitting it to the factory. Any changes or corrections should be made as soon as possible to avoid delays and additional costs.
Pricing and Negotiations
Finally, buyers should carefully consider the pricing and negotiations involved in ordering a new car from the factory. It’s essential to research the market value of the vehicle and negotiate a fair price with the dealership. Buyers should also be aware of any incentives or discounts that may be available, such as rebates or low-interest financing.
Additional Costs to Consider
In addition to the purchase price of the vehicle, buyers should also consider additional costs such as sales tax, registration fees, and insurance premiums. These costs can add up quickly, and buyers should factor them into their overall budget.
To summarize the key points, here is a list of the benefits and drawbacks of ordering a new car from the factory:
- Benefits: customization, cost savings, latest safety and performance features
- Drawbacks: longer waiting period, challenges and costs associated with order changes
In conclusion, ordering a new car from the factory can be a cost-effective option for buyers who are willing to wait and carefully plan their purchase. By avoiding the markup that dealerships often add to the price of their inventory vehicles and customizing their vehicle with only the features they need, buyers can potentially save thousands of dollars. However, it’s essential to carefully consider the waiting period, order changes, and pricing and negotiations involved in the process. With the right approach and a clear understanding of the benefits and drawbacks, ordering a new car from the factory can be a smart and affordable choice.
What are the benefits of ordering a new car from the factory?
Ordering a new car from the factory can provide several benefits to the buyer. One of the main advantages is the ability to customize the vehicle to their exact specifications. This means that they can choose the color, trim level, options, and features that they want, without having to settle for a car that is already in stock at a dealership. Additionally, ordering a car from the factory can also help to ensure that the buyer gets the latest model with the newest features and technologies.
Another benefit of ordering a new car from the factory is that it can sometimes be cheaper than buying a car from a dealership. This is because the buyer is dealing directly with the manufacturer, and is not having to pay the markup that a dealership would typically add to the price of the car. Furthermore, some manufacturers may offer incentives or discounts to buyers who order their cars directly from the factory. However, it’s worth noting that ordering a car from the factory can take several weeks or even months, so buyers need to be patient and plan ahead if they want to take advantage of this option.
How long does it take to receive a new car that is ordered from the factory?
The time it takes to receive a new car that is ordered from the factory can vary depending on several factors, such as the manufacturer, the model of the car, and the destination of the buyer. Typically, it can take anywhere from a few weeks to several months to receive a car that is ordered from the factory. Some manufacturers may be able to deliver a car in as little as 2-3 weeks, while others may take 3-6 months or more. Buyers should check with the manufacturer or their local dealership to get a more accurate estimate of the delivery time.
It’s also worth noting that the delivery time can be affected by various factors, such as the production schedule of the factory, the availability of the desired options and features, and the transportation time from the factory to the buyer’s location. Buyers should be prepared to wait and should plan ahead to ensure that they have a reliable means of transportation while they wait for their new car to arrive. Additionally, some manufacturers may offer updates on the status of the car’s production and delivery, which can help to keep the buyer informed and up-to-date on the progress of their new vehicle.
Can I customize my new car when ordering from the factory?
Yes, one of the main advantages of ordering a new car from the factory is the ability to customize it to your exact specifications. Buyers can typically choose from a range of options, including the color, trim level, engine, transmission, and features such as infotainment systems, safety features, and interior upgrades. Some manufacturers may also offer additional customization options, such as unique interior trim or exterior design elements. Buyers should check with the manufacturer or their local dealership to see what customization options are available for the car they are interested in.
The customization process typically involves working with a dealership or manufacturer representative to select the desired options and features. Buyers can usually do this in person, over the phone, or online, depending on the manufacturer’s procedures. Once the car is ordered, the manufacturer will build it to the buyer’s specifications and deliver it to the dealership or directly to the buyer. It’s worth noting that some customization options may incur an additional cost, so buyers should be sure to check the pricing and availability of the options they want before placing their order.
How do I order a new car from the factory?
To order a new car from the factory, buyers typically need to visit a dealership or contact the manufacturer directly. They will need to specify the make and model of the car they want, as well as the desired options and features. The dealership or manufacturer representative will then guide the buyer through the ordering process, which may involve filling out a form or using an online ordering system. Buyers should be prepared to provide their contact information, as well as any other relevant details, such as their preferred delivery date and any trade-in information.
Once the order is placed, the manufacturer will begin building the car to the buyer’s specifications. The buyer will typically receive updates on the status of their car’s production and delivery, and may be able to track the progress of their vehicle online. When the car is ready, it will be delivered to the dealership or directly to the buyer, depending on the manufacturer’s procedures. Buyers should be sure to review and sign all necessary documentation, including the sales contract and any financing agreements, before taking delivery of their new car.
Are there any disadvantages to ordering a new car from the factory?
While ordering a new car from the factory can offer several benefits, there are also some potential disadvantages to consider. One of the main drawbacks is the wait time, which can be several weeks or even months. This can be frustrating for buyers who need a new car quickly, or who are eager to get behind the wheel of their new vehicle. Additionally, ordering a car from the factory may not provide the same level of immediacy and spontaneity as buying a car from a dealership, where buyers can often drive away in their new car on the same day.
Another potential disadvantage of ordering a new car from the factory is the lack of flexibility. Once the order is placed, it can be difficult to make changes or cancel the order, especially if the car is already in production. Buyers should be sure to carefully review their order and specifications before submitting them, to ensure that they get the car they want. Additionally, some manufacturers may charge a fee for changes or cancellations, which can add to the overall cost of the car. Buyers should be aware of these potential drawbacks and plan accordingly to avoid any issues or complications.
Can I get financing for a new car that is ordered from the factory?
Yes, buyers can typically get financing for a new car that is ordered from the factory. The financing process is usually similar to buying a car from a dealership, where the buyer can work with the dealership or manufacturer to arrange financing through a lender. The buyer will need to provide financial information, such as their income and credit score, to determine their eligibility for financing and to secure a loan. The lender will then provide the necessary funding to purchase the car, and the buyer will make monthly payments to repay the loan.
Buyers should be sure to research and compare financing options from different lenders to find the best rates and terms for their situation. Some manufacturers may also offer financing incentives or promotions, such as low-interest rates or cashback offers, which can help to reduce the cost of financing. Additionally, buyers should carefully review the financing agreement and ensure that they understand all the terms and conditions before signing. It’s also worth noting that some manufacturers may offer financing options specifically for cars that are ordered from the factory, so buyers should be sure to ask about these options when they place their order.
Is ordering a new car from the factory worth it?
Whether ordering a new car from the factory is worth it depends on the individual buyer’s needs and preferences. For buyers who want a high level of customization and are willing to wait for their car, ordering from the factory can be a great option. Additionally, buyers who are looking for a specific model or trim level that is not available at local dealerships may find that ordering from the factory is their best bet. However, for buyers who need a car quickly or prefer the immediacy of buying from a dealership, ordering from the factory may not be the best choice.
Ultimately, the decision to order a new car from the factory should be based on the buyer’s individual circumstances and priorities. Buyers should carefully weigh the benefits and drawbacks of ordering from the factory, including the wait time, customization options, and potential cost savings. They should also research and compare prices and financing options to ensure that they are getting the best deal possible. By doing their homework and considering their options carefully, buyers can make an informed decision that meets their needs and budget.