Americans are accustomed to buying a car from dealer stock, but car shopping doesn’t work that way everywhere. In countries across Europe, for example, it’s much more common to order the exact car you want and then wait for it to be built and shipped. If you find yourself dreaming of a certain car with very specific features, and you’re willing to wait for it, you can order a car built to your exact specifications through the manufacturer’s ordering process.
A few years ago, we’d have told you that ordering a car from the factory was possible but difficult, often costly, and involved a long wait. But that’s less true today, as factory ordering has become a more common and appealing option. During the past few years of post-pandemic supply chain recovery, dealerships found themselves short of many popular models due to production hurdles caused by a worldwide microchip shortage. With fewer models in stock, more buyers began ordering the cars they wanted through factory-order programs.
A factory order can allow you to get precisely the car you want, in the color combination you desire, with the options you prefer. We’ll walk you through how the process works and how to decide whether it’s right for you.
- Why Order a Car From the Factory?
- Pros and Cons of Ordering From the Factory
- How to Order a Car From the Factory
- Can You Negotiate the Price?
- Are You Really Getting the Car Straight From the Factory?
- What if You Change Your Mind?
- Bottom Line on Special-Order Cars
Why Order a Car From the Factory?
Most of us dream about buying precisely the car we want. But in reality, we want things now or need something to help us get around much sooner. A perfect car for you, down to the last detail, is likely not something your local dealership carries in stock. If you can endure the wait, ordering a car built to your specifications offers:
- More control: You may not be able to mix and match every option, but custom-ordering your car can give you more control and more room for personal expression. However, be aware that many automakers build certain features only as part of option packages. So, for example, selecting the larger infotainment screen on a custom-built car may require you to purchase a premium stereo you don’t care about.
- Access to packages that may not be popular where you live: If you are pickup truck shopping in the rural West, for instance, there’s a good chance your dealer has a truck with the maximum tow package on the lot because many buyers in that area ask for that package. If you’re truck shopping in a more urban area in the East, dealers are less likely to have that model in stock. If you need to pull a trailer, you might need to order a truck.
- More time to regulate emotions around the purchase: Factory ordering reduces the emotional process of seeing a car on a lot and wanting it now. Custom orders take time and allow you to make a careful financial decision and really think through all the specifications. After all, this could be the second-largest purchase you make, behind your home.
Pros and Cons of Ordering From the Factory
How to Order a Car From the Factory
Only a small handful of manufacturers sell cars directly to buyers. Tesla does so with 100% of its products. Many electric vehicle (EV) startups, such as Rivian and Lucid Motors, follow the Tesla model. For these manufacturers, the entire ordering process takes place online. The company’s website can guide you through the process of ordering your car.
With every other automaker, there’s a dealership involved in the process. The dealership may not be highly visible in the process, but it still plays a role. Some automakers allow you to complete nearly every step in the ordering process online, but a local dealership still handles the paperwork for your order and oversees delivery of the car to you.
Some manufacturers have developed robust online ordering systems that allow buyers to complete the entire car purchase online. With a system like Toyota’s SmartPath (called Lexus Monogram for Toyota’s luxury brand), shoppers can follow the steps on the manufacturer’s website to place an order, then wait for a local dealer to contact them to arrange delivery.
Otherwise, you’ll need to work with a dealership to complete your order and follow the steps below.
Step 1: Get prequalified
Work with your preferred bank or credit union to prequalify for a loan. This will help you know where your credit score stands and could potentially give you negotiating power on the final price of the vehicle.
Step 2: Choose a dealership
Research local dealerships and choose one as you would if you were planning to buy a car from dealer stock.
Step 3: Design your perfect car
Use the Build and Price feature on the manufacturer’s website to design the vehicle with the features you want.
Step 4: Make a copy
Print the page with the final results. We’ll call this the “build sheet.”
Step 5: Schedule an appointment
Call your chosen dealership and explain that you’re custom-ordering a car and would like to schedule an appointment.
Step 6: Visit the salesperson
Bring your printed build sheet to the salesperson and request an “out-the-door price” for the vehicle.
Step 7: Haggle
Just as you would with any other car purchase, you can negotiate the out-the-door price. You have the right to negotiate every aspect of the transaction aside from state tag and title fees, just as you would with any other car.
Step 8: Entertain dealership financing offers
Feel free to entertain the dealership’s offer for financing, but only accept it if it beats what you obtained from outside sources.
Step 9: Sign the paperwork and get copies
When satisfied with the price, sign the buyer’s order and have the sales manager do the same. Your agreed-upon price isn’t locked in if you leave without a signed buyer’s order. Get a signed copy for yourself and leave a second signed copy with the dealership.
Step 10: Pay your deposit
The deposit amount varies by brand but is typically $1,000 or less. If you do not pay a deposit, you haven’t truly reserved the vehicle. The dealer has ordered one and plans to sell it to you later. Pay this now so that the car is reserved for you. Make sure the deposit is refundable if you change your mind.
Step 11: Wait
You must now wait for your vehicle to be built and delivered. The dealership should keep you informed on timing, but feel free to call or email for updates.
Step 12: Enjoy
Accept delivery of your new car and hit the road!
Can You Negotiate the Price?
Manufacturers that sell cars directly to buyers, like Tesla, do not negotiate car prices. When ordering a car from most manufacturers, though, you are still working through a dealership. You can negotiate a price just as you can when purchasing from dealer stock.
Don’t forget that when you order the car, you will need a copy of the buyer’s order with your signature and the sales manager’s signature on it to set the price. Most dealerships won’t try to renegotiate the price on delivery of the car, but some less ethical dealers might. A signed agreement, complete with your deposit, will protect you from this.
If you are trading in a car, the dealer will want to negotiate the value of your trade-in only when your new car arrives and you are ready to take possession. Negotiating trade-in value should always be a separate step from negotiating price.
RELATED: Is Now the Time to Buy, Sell, or Trade-in a Used Car?
How Much Should You Put Down?
If you are financing your new car purchase, treat the loan process the same, whether you order a custom-built car or buy one from dealer stock. Most financial advisors recommend making a down payment of at least 20% of the loan amount upfront, if possible.
When you order, you will pay a reservation fee to reserve your car. This fee is separate from your down payment, usually $1,000 or less. It does count toward the principal of your loan balance. But its primary purpose is to reserve the car for you. If a dealer offers to let you out of the reservation fee, don’t accept. The reservation fee helps to lock in your price. If you don’t pay it, an unethical dealer may take the car as dealer stock and sell it to someone else for a higher price.
How Long Does It Take for Delivery?
Unfortunately, there is no fixed period. Everyone waits when ordering a car from the factory. Wait time depends on many factors, including supply chain disruptions. These factors and others are constantly in flux. The dealership can give you some idea of what to expect, but be prepared to wait one to four months, and the delivery date could change. Some high-demand models have longer delivery windows. We’ve heard stories of wait times of up to nine months for select vehicles.
MORE: Car Safety Features 101: Everything You Need to Know
Are You Really Getting the Car Straight From the Factory?
When you order a custom-built car, the automaker builds that specific car just for you.
Some manufacturers ship the car directly to you. This is common with Tesla and other electric car companies like Lucid and Rivian, which lack traditional dealerships. Corvette buyers wanting VIP treatment can arrange to receive their fresh-off-the-assembly-line Stingray at the National Corvette Museum for an extra fee. But most manufacturers ship the car to a dealership near you to handle the final delivery steps. They may ask you to pick it up at the dealership or arrange for a dealership employee to bring it directly to you.
Dealerships should know better than to try to tack on additional charges at the last minute. But it is always possible that an unscrupulous dealer will try to sell you an upholstery coating, wind deflectors, or some other added-cost extra installed at the dealership. Resist the temptation.
KBB Pro Tip: Alternatives to ordering from the factory
The manufacturer and dealership coordinating your order may first try to steer you toward an existing car very similar to the one you want, whether from their stock or another dealership’s lot. Let them. Sometimes, dealers can trade vehicles with other dealers of the same brand. A dealership in Massachusetts may locate a car much like what you’re looking for in Texas and have it shipped to them to sell to you. That can speed up the process, so there’s no harm in letting dealerships try.
What if You Change Your Mind?
Every manufacturer has policies for canceling a custom order, but it is always possible to cancel. In some states, it’s even possible to return a car shortly after taking possession.
What may not be possible is getting your deposit back after build-status milestones. It depends on the agreement with the dealership and the circumstances of the order cancellation. Excessive build time could be a reason for refunding a deposit. However, a case of buyer’s remorse might not warrant a refund. Still, if your financial circumstances change, talk to the dealership quickly. You may have options.
Some automakers and dealerships are more open to returning deposits, but the vehicle can influence the decision, as the dealer may have difficulty reselling a specific configuration. You should read the special-order paperwork carefully and ask questions before you sign.
Bottom Line on Special-Order Cars
Ordering a car from the factory lets you customize features and options to your liking, but it usually means a longer wait and may cost more than buying from dealer stock. The process involves working with a dealership or, in some cases, ordering directly from the manufacturer, with steps such as negotiating the price, paying a deposit, and waiting for delivery. While you get the exact car you want, you may have to compromise on some features due to package limitations, and alternatives like dealer trades can offer a quicker solution. Ultimately, factory ordering is best for buyers who value customization and are willing to wait.
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Editor’s Note: This article has been updated since its initial publication. Sean Tucker contributed to this report.
