How To Factory Order A Car And Get The Best Deal (Step By Step)

how exactly do you factory order a brand new car during a major car shortage and still get the best deal that's what we're going to find out welcome to crop corner where we help you the consumer master the process of car buying and car ownership if you're planning on buying a brand new car within the next year or so or know someone who's buying a brand new car then this video is for you i'm gonna take you step by step through the process of factory ordering a brand new car during a major car shortage or ordering an incoming car at a dealership and make sure that you get the best deal possible without leaving any money on the table and if you enjoy and get value out of this video make sure to subscribe to my channel i post two videos a week always straight to the point valuable car buying advice designed to help you the consumer so as most of us are now aware there is a very severe industry-wide car shortage across the car market in north america which is mostly caused by supply chain issues and a global shortage of computer microchips the shortage of parts is causing delays in manufacturing which means that dealerships are receiving less cars than they normally would which means that most customers are not able to find a car on dealer lots pretty much the majority of brand new cars now must be factory ordered at the dealership and depending on the type of car that you want to buy you could be waiting anywhere from a few months to over a year long that's how bad the shortage really is now while of course it is possible to find certain cars on dealer lots many of the popular models do need to be factory ordered this often includes high demand cars especially cars like hybrids and electric cars which can have some of the longest waiting periods of all and depending on the car brand that you're looking at you're either going to have to place a factory order or you're going to have to make a deposit and wait for an allocation to arrive at the dealership that fits what you're looking for either way with this step-by-step video you should be able to get the very best deal possible the first thing that's important to understand anytime you're buying a car is that there's essentially three steps to the entire process there's the research phase the negotiating phase and the final buying phase the research phase consists of doing research and trying to decide what kind of car you want to buy it also consists of shopping around at different dealerships and doing test drives to help narrow down your decision for this video we're going to already assume that you've made a decision as to which car you want to buy and you're ready just to move on to contacting dealers and getting started with the negotiating which brings us on to the negotiating phase now what's really important to understand about this step is that you always want to make sure that you're focusing on the total price of the car first negotiating the best price possible and then focusing on the payments for either financing or leasing at the very end if you're able to negotiate the very best total price of the car that's going to help guarantee that you have the lowest payments possible too now the issue with this is that negotiating the price of the car during a major car shortage can be extremely challenging especially when dealers have waiting periods anywhere from 6 to 12 months for specific cars any dealer that has a waiting period for that long is realistically not going to be negotiating with their customers but that being said even with the severe car shortage and waiting periods upwards of a year long there's still some things that you can do as a consumer to make sure that you're getting a really good price but more importantly a fair price the first thing to do when negotiating is not just to go to one dealership that's closest to your home you want to make sure that you contact several different dealerships in your general area to see what kind of quotes they give you not only is this extremely important when it comes to negotiating the actual price but it's also going to reveal a lot of valuable information about the dealership as well any dealer that refuses to give you a price quote through email and tells you that you need to come into the dealership before they can discuss any pricing is not being professional or transparent with you and that's a major red flag any professional and transparent dealer is not going to have any issue giving you a fully itemized price breakdown in a proper quote by email so that you know exactly what you're going to be paying for the car before you take one step through the door so if the dealer is not willing to give you a quote by email or if they're giving you a really hard time with it then that tells you that's a dealership that you don't want to deal with now once you've contacted several dealers and received all of your quotes by email it's now time to analyze the quotes carefully to see exactly what they're charging you for now what's important to focus on here is the itemized price breakdown for the total price of the car which gives you line by line item for every single charge that's part of that car price what you want to look for here are charges that are mandatory versus ones that are not mandatory that you should not be paying for for example because of the major car shortage many dealers are now adding all kinds of extra fees add-ons and even markups that can add thousands of dollars to the price of the car this can include charges like an administration fee anti-theft or protection fee wheel and tire or nitrogen fees as well as mandatory rust protection or mandatory extended warranties that you can't take off the price having an understanding of all these different charges is extremely important so that you can go through the price quote from the dealership carefully to make sure that they're not charging you for any of these things or at the very least pick the quote that has the lowest price of the lot and the one that also has the least number of fees let's take a look at this quote from a recent car help client that i helped not too long ago get a really good deal on a brand new factory order 2023 acura integra now if we look at the price breakdown for this car we can see that the dealership is charging them the msrp which is exactly what you'd find on the acura website and on top of that you have your freight and pdi which is a mandatory charge on any brand new car both in canada and in the us and we also have a number of small levies including a hundred dollar air conditioning tax a ten dollar omvik fee and we also have our licensing fee and our sales tax for the province of ontario this is exactly what you want to see on a price quote only the mandatory fees and nothing else this is what i call a fair deal because the consumer is not going to be overpaying for the car there's no market adjustment fee there's no markup and there's no extra charges or products that they don't want and you should also try to aim for a very similar outcome if you're shopping in any of the us states only instead of the small levees that we have here in ontario there should only be a title and registration fee as well as a small doc fee all of which should only total around 300 at the most now once you pick the dealer that has the best price quote out of the lot and also the one that was the most professional and transparent with you when corresponding by email it's now time to set up an appointment with the dealership and negotiate the price in person even after you pick the best quote out of the bunch if you still see the dealership is trying to charge you any extra fees now is the time to try and negotiate them out of the price and once you're happy with the price or confident that it's at least the very best price that you can get in your area now it's time to start negotiating some of the extras that you might want to consider like an extended warranty plan a maintenance plan or any additional add-ons all these things are negotiable and the final thing that you want to negotiate after you've decided on the actual price of the car is to negotiate your trade-in car if you happen to have one because of the major car shortage trade-in car values have gone through the roof which means that you can more than likely get a really good price for your trade-in often more than you might expect but in order to get the best price for your trade-in car you do need to do a little bit of homework first this means going online to websites like autotrader cargurus carmax carvana kelly bluebook and other similar websites like this many of these websites have what's called an instant cash offer tool this is where you can enter all the details on your car and see what a local dealership is willing to offer you my advice is just to use the instant cash offer tools on all these different websites because you basically have nothing to lose see which one is going to offer you the very best price and now use that price as your negotiating chip with the dealership that you're trying to order the car from if the dealer is willing to give you the exact same price as you got from the instant cash offer tool at least you know you're getting a fair price for your trade-in and what's really good about this is that the trade-in car is usually deducted from the total price of the car before sales tax is applied which means that you're also going to save some money on the tax too and with the total price of the new car and the trading card negotiated that concludes the negotiating phase of the process which brings us on to the actual car buying phase the actual car buying phase consists of calculating your payments for either financing or leasing making a deposit and signing the paperwork so that you can place your order for the car now as mentioned earlier you only want to get your payments for either financing or leasing depending on what you decide on after you negotiated the total price of the car first that way you can make sure you're also getting the lowest payments to you also want to make sure that you understand all the terms of the financing and leasing including the interest rate to make sure that you're getting the best interest rate possible it's also a good idea to shop around and check with your local banks and credit unions to see whether they're able to give you a much better interest rate than what the dealership is offering you in any case it's important to understand that the interest rate could change depending on how long the waiting period is for the car that you're buying for example if the car that you're buying is more than six months away from being delivered there is a possibility that the interest rates could go down during that time so you want to make sure that you write a condition on the contract in case the rates do go down you aren't going to receive the newest and lowest interest rate at that time and yes as a consumer you do have the right to have written conditions added onto the contract to help protect yourself as much as possible for example if you're feeling a little bit uneasy about how long the waiting period might be and you want to have the option to cancel ask the dealership to write that condition on the contract that you have the right to cancel the agreement at any time and if there are any other conditions that you want to have or if there are any promises that are being made by the dealership make sure that they are in writing on the purchase agreement remember verbal promises mean nothing all that matters is what's on paper if they promise you something it needs to be written down and one of the promises includes the trade-in price for your car remember if you're buying a car that's more than six months away from being delivered the dealership might not be able to commit to a very specific price for your trading car because circumstances could change and the value of your car could lower over time so what you want to do is see if the dealer can at least commit to a price estimate for your trading car a price that might need to be revised a little bit closer to the delivery date just in case the value of your card drops a little bit over time but if the car you're ordering is only a few months away from delivery then the dealership should be able to commit to a trade in price because the value of the car is realistically not going to change much over two to three months in any case make sure that you're happy with all the numbers the price that you're paying for the car the trade-in value for your car all the payments and the price of all the extras that you're buying if you decide to do so before you sign the purchase agreement remember in most locations once you sign that contract the deal is final and binding unless of course you add a condition in the contract which gives you the ability to cancel it at any time and get your deposit back but in any case it's always a good idea to be 100 certain before you sign the paperwork and once you sign the paperwork this is when you're also going to be making a deposit for the car that you're buying typically for most new cars a deposit is going to be anywhere from 500. dollars upwards of fifteen hundred dollars depending on the price of the car but whatever you do make sure you don't give your deposit to the dealership without getting your paperwork you wanna make sure that you have your purchase agreement as your documentation and at that stage once you've signed the purchase agreement and given the dealership your deposit it's just going to be a matter of waiting now again it really depends on the car that you're buying you could be waiting a few months or you could be waiting several months one thing that you could do to help shorten the waiting period is to give the dealer a few different color options sometimes if you're more flexible on your color choices as well as the options on the car it could shorten the wait time by quite a bit and the other thing that you want to consider is how large is the dealership that you're buying from because sometimes larger dealerships that sell a lot more cars per month also receive a lot more allocations for units so you might have better luck and a shorter waiting period if you decide to buy from a bigger dealership the reality is that every single dealer is an independent business or an independent franchise which means that they all get a different number of units and they all have the ability to set their own prices and charge their own fees and products which means that you could get different information at every single dealer that you approach this is why the process of shopping around and approaching as many different dealers as possible is extremely important during the car shortage because you could end up spending a lot more money at one dealership versus another dealership for the exact same car there's no question 2022 is not exactly the best time to be shopping for a new car so if you do have the ability to wait until 2023 or even 2024 that might be the best thing to do because you're going to have more negotiating power to get a better deal when the car shortage is over so let me know what you thought of this video and if you want to share your recent car buying experience including the price that you got from the dealer just leave a comment below and if you enjoyed this video make sure to like and subscribe you can also take a look at some of my other car videos by checking out these links over here make sure to follow me on tik tok and instagram and if you need any additional car buying advice recommendations or help with getting a great deal on your next new car purchase make sure to check out carhelpcanada.com thanks so much for watching and see you next time

Channel: Car Help Corner

Views: 120,512

Keywords: how to factory order a car, how to factory order a new car, how to factory order a car in 2022, how to factory order a new car in 2022, how to buy a car, how to buy a car in 2022, how to negotiate a used car deal, how to negotiate with car dealers, how to get the best price on a new car, dealer fees to avoid, dealer fees explained, hidden dealer fees, dealer scams when buying a car, how to order a car from a dealership, how to order a car online, how do dealerships work

Id: bSVeCtEYU4I

Length: 13min 37sec (817 seconds)

Published: Sun Jul 10 2022