FACTORY ORDERING A CAR? NEVER PAY FULL PRICE! Kevin Hunter The Homework Guy

How to negotiate a factory ordered vehicle. Well, you ordered it, but that doesn't mean you pay full price. Here's the truth. A legitimate sold order can be attractive piece of business for the dealer. They have a committed customer before the vehicle arrives, less inventory carrying risk, and a straightforward path to a sale. A pre-sold order is quite valuable to a dealer, so don't treat the dealer as though they're doing you a favor merely by submitting the order. You're the one doing the dealer a favor. They ask, so you want a very specific vehicle, the right color, the right engine, the right trim, the right options? And the dealer says, no problem, we can order it for you. And that's where a lot of car buyers make a huge mistake. They think because they're special ordering the vehicle, they've lost their ability to negotiate. They think the dealer has the upper hand. No, not so. You are actually bringing the dealer one of the cleanest sales they're going to get. So here's the deal. If you have to order, especially for you, aren't they doing you a favor? Well, that's exactly what the dealer wants you to think. That gets us into the meat of it. Number one, understand what you're actually negotiating. The buyer should separate vehicle selling price, dealer installed accessories, dealer dock fees, trade-in, financing, F&I products, deposit and order terms, and ultimately get to an out-the-door agreement subject to legitimate government charges that may need to be calculated at delivery if necessary. This fits perfectly with our existing four numbers philosophy. And secondly, don't ask for their best price. This is especially important here. What's your best price if I order it? No, don't do that. Instead, I'm ready to place an order for this exact configuration. Please send me your written selling price and an itemized out-the-door quote based on these specifications. Now we have a number. Then we negotiate that number. Factory ordering doesn't suddenly change the psychology of negotiation. Number three, shop the order to multiple dealers. Unlike shopping inventory where dealer A has a blue one and dealer B has a white one with different equipment, you can potentially have multiple dealers price essentially the same build, same model, same trim, same options, same MSRP build sheet that makes comparison shopping remarkably clean. Send the identical build to several dealers. I'm placing this order with one dealer. Please send me your selling price and itemized out-the-door price. Now they're competing over the same vehicle specification. And that, my friends, is powerful. Number four, the dealer doesn't have to stock your vehicle. This supports our original premise. With a normal inventory vehicle, the dealer may acquire it without knowing exactly when it will sell. With your order, there's already a customer waiting. Don't assume the dealer deserves full MSRP just because they're ordering your car. You're bringing them a potentially very clean transaction, a customer who has already decided what to buy. Number five, don't negotiate only X dollars below MSRP without protecting the rest of the deal. Suppose they agree to $2,500 under MSRP. Great. Then comes a $899 protection package, $599 tint, $1,295 appearance package, $799 dealer fee, and $495 VIN etching. Suddenly, your $2,500 discount just disappeared, went poof. This is why the homework guy wants the entire transaction in writing. Number six, get the agreement in writing before the order. Get documentation identifying exact vehicle build, agreed selling price, dealer fees, required dealer products and accessories, preferably none of those, and then the deposit amount. We usually recommend 500 bucks on a credit card. Whether the deposit is refundable, trade treatment, and then if there are applicable financing expectations, how the manufacturer incentives will be handled, what happens if MSRP changes, what happens if the build changes, and then what happens if the vehicle arrives damaged? What happens if the order cannot be fulfilled? And critically, what price protection, if any, applies to your order? A six-month wait creates opportunities for misunderstandings. Number seven, incentives are tricky, and this deserves its own caption. You, the buyer, orders today, but the vehicle might arrive months later. So which incentives apply? Do you know what order date incentives were there? What delivery date incentives? Can the incentives be locked? Can the customer choose whichever program is better? Manufacturer programs differ, so the buyer should get the dealer's treatment of incentives in writing rather than accepting. We'll figure that out when it gets here. Don't do that. Number eight, be very careful with the deposit. This could be a big takeaway. We need a $2,000 non-refundable deposit, they say. Why? Ask. How much deposit does the dealership actually require? Is it refundable? Under what circumstances? What changes if the manufacturer changes equipment, price, model year, estimated delivery, or doesn't build the vehicle? Don't hand over thousands of dollars based on a salesperson's verbal assurances. As I said a moment ago, 500 bucks on a credit card should do it. Number nine, don't let delivery day become negotiation day. There's two very important points to be aware of. The day you order the car is negotiation day. The day you pick it up is inspection day. By delivery, you, the buyer, are emotionally invested. You've waited maybe four months. They've shown everybody pictures. You've already mentally parked it in your garage. That's a terrible time to discover the dealer added $3,000 worth of product. Set the terms before ordering. Number 10, don't forget to inspect the brand new factory order. Factory order doesn't mean a flawless car. Check the paint and body damage, wheels, glass, interior, mileage, options. Make sure the VIN matches, build sheet, the window sticker, accessories, warning lights, transportation damage. Before we go any further, I want to point something out. One of the most common types of customers we help through the Homework Guy Car Buying Service is the customer who wants a special order of vehicle. Maybe you know the exact color you want, the exact trim, the engine, the interior, the packages, the options, and you're having trouble finding that exact combination sitting on a dealer's lot. That doesn't mean you have to walk into your local dealership, place an order, and simply accept whatever price they give you. In fact, a special order can create a really interesting negotiating opportunity. Think about what you're bringing to the dealer. You're a real buyer. You've already decided what vehicle you want. You're not asking them to put another vehicle in their lot and hope somebody eventually buys it. You're giving them a customer for a vehicle before that vehicle even shows up. So why wouldn't you negotiate? With our Car Buying Service, we can help you shop that order among dealers, get actual written out-the-door numbers, compare their offers, and negotiate the deal before you commit to the order. And we're not calling dealers and asking, what's your best price? You know how I feel about that. We want an actual number. Then we go to work on that number. We also want to know what happens to your deposit, what fees the dealer is charging, whether they're adding products or accessories, what happens if pricing changes before delivery, and how available incentives will be handled when your vehicle finally arrives. Because the day your beautiful new vehicle shows up in exactly the color and configuration you've been waiting months for, that's a terrible time to discover that you and the dealer had two very different ideas about what the deal was supposed to be. That deal should be as clear as it can possibly make it before the order gets placed. So if you're thinking about special ordering your next vehicle, don't think our Car Buying Service is only for vehicles already sitting on dealer lots. Special orders are a big part of what we help car buyers with. You pick the vehicle, you pick the color, you pick the options, and we'll help you work on the deal. Visit the Homework Guy website and check out our Hassle-Free Car Buying Service. It's the big red button on the homepage. Because ordering the vehicle you want doesn't mean giving up your right to negotiate. Now here's some final notes. Make sure the vehicle that arrived is actually the vehicle you agreed to purchase. Factory ordering a vehicle should not make you a weaker negotiator. In some ways it can make your job easier. You know exactly what you want, you can give the same bill to multiple dealers, you can make them compete for the same sale, and you can negotiate the transaction months before you ever get emotionally attached to the vehicle sitting in front of you. So don't walk into a dealership saying, can you please order this for me? Walk in with the mindset, I'm ready to give one dealership this business. Now show me why it should be you. And if you're thinking after all of this, Kevin, I don't want to call six dealers, chase down six salespeople, compare six out the door quotes, and spend the next three days trying to figure out who's playing games and who's not. That's exactly why we created the Homework Guy Hassle-Free Car Buying Service. We can help shop the dealers, get the numbers in writing, negotiate the transaction, and help you know what you're agreeing to before that order goes in. I'm Kevin Hunter, the Homework Guy. Thanks for listening, and we'll see you on the next video. How to negotiate a factory-ordered vehicle. Well, you ordered it, but that doesn't mean you pay full price. Here's the truth. A legitimate sold order can be attractive piece of business for the dealer. They have a committed customer before the vehicle arrives, less inventory carrying risk, and a straightforward path to a sale. A pre-sold order is quite valuable to a dealer, so don't treat the dealer as though they're doing you a favor merely by submitting the order. You're the one doing the dealer a favor. They ask, so you want a very specific vehicle, the right color, the right engine, the right trim, the right options? And the dealer says, no problem, we can order it for you. And that's where a lot of car buyers make a huge mistake. They think because they're special ordering the vehicle, they've lost their ability to negotiate. They think the dealer has the upper hand. No, not so. You are actually bringing the dealer one of the cleanest sales they're going to get. So here's the deal. If you have to order it especially for you, aren't they doing you a favor? Well, that's exactly what the dealer wants you to think. That gets us into the meat of it. Number one, understand what you're actually negotiating. The buyer should separate vehicle selling price, dealer installed accessories, dealer dock fees, trade-in, financing, F&I products, deposit and order terms, and ultimately get to an out-the-door agreement subject to legitimate government charges that may need to be calculated at delivery if necessary. This fits perfectly with our existing four numbers philosophy. And secondly, don't ask for their best price. This is especially important here. What's your best price if I order it? No, don't do that. Instead, I'm ready to place an order for this exact configuration. Please send me your written selling price and an itemized out-the-door quote based on these specifications. Now we have a number. Then we negotiate that number. Factory ordering doesn't suddenly change the psychology of negotiation. Number three, shop the order to multiple dealers. Unlike shopping inventory where dealer A has a blue one and dealer B has a white one with different equipment, you can potentially have multiple dealers price essentially the same build, same model, same trim, same options, same MSRP build sheet that makes comparison shopping remarkably clean. Send the identical build to several dealers. I'm placing this order with one dealer. Please send me your selling price and itemized out-the-door price. Now they're competing over the same vehicle specification. And that, my friends, is powerful. Number four, the dealer doesn't have to stock your vehicle. This supports our original premise. With a normal inventory vehicle, the dealer may acquire it without knowing exactly when it will sell. With your order, there's already a customer waiting. Don't assume the dealer deserves full MSRP just because they're ordering your car. You're bringing them a potentially very clean transaction, a customer who has already decided what to buy. Number five, don't negotiate only X dollars below MSRP without protecting the rest of the deal. Suppose they agree to $2,500 under MSRP. Great. Then comes the $899 protection package, $599 tint, $1,295 appearance package, $799 dealer fee, and $495 VIN etching. Suddenly, your $2,500 discount just disappeared, went poof. This is why the homework guy wants the entire transaction in writing. Number six, get the agreement in writing before the order. Get documentation identifying exact vehicle build, agreed selling price, dealer fees, required dealer products and accessories, preferably none of those, and then the deposit amount. We usually recommend 500 bucks on a credit card. Whether the deposit is refundable, trade treatment, and then if there are applicable financing expectations, how the manufacturer incentives will be handled, what happens if MSRP changes? What happens if the build changes? And then what happens if the vehicle arrives damaged? What happens if the order cannot be fulfilled? And critically, what price protection, if any, applies to your order? A six-month wait creates opportunities for misunderstandings. Number seven, incentives are tricky, and this deserves its own caption. You, the buyer, orders today, but the vehicle might arrive months later. So which incentives apply? Do you know what order date incentives were there? What delivery date incentives? Can the incentives be locked? Can the customer choose whichever program is better? Manufacturer programs differ, so the buyer should get the dealer's treatment of incentives in writing rather than accepting. We'll figure that out when it gets here. Don't do that. Number eight, be very careful with the deposit. This could be a big takeaway. We need a $2,000 non-refundable deposit, they say. Why? Ask, how much deposit does the dealership actually require? Is it refundable? Under what circumstances? What changes if the manufacturer changes equipment, price, model year, estimated delivery, or doesn't build the vehicle? Don't hand over thousands of dollars based on a salesperson's verbal assurances. As I said a moment ago, 500 bucks on a credit card should do it. Number nine, don't let delivery day become negotiation day. There's two very important points to be aware of. The day you order the car is negotiation day. The day you pick it up is inspection day. By delivery, you, the buyer, are emotionally invested. You've waited maybe four months. They've shown everybody pictures. You've shown everybody pictures. You've already mentally parked it in your garage. That's a terrible time to discover the dealer added $3,000 worth of product. Set the terms before ordering. Number 10, don't forget to inspect the brand new factory order. Factory order doesn't mean a flawless car. Check the paint and body damage, wheels, glass, interior, mileage, options. Make sure the VIN matches, build sheet, the window sticker, accessories, warning lights, transportation damage. And before we go any further, I want to point something out. One of the most common types of customers we help through the Homework Guy car buying service is the customer who wants a special order of vehicle. Maybe you know the exact color you want, the exact trim, the engine, the interior, the packages, the options, and you're having trouble finding that exact combination sitting on a dealer's lot. That doesn't mean you have to walk into your local dealership, place an order, and simply accept whatever price they give you. In fact, a special order can create a really interesting negotiating opportunity. Think about what you're bringing to the dealer. You're a real buyer. You've already decided what vehicle you want. You're not asking them to put another vehicle in their lot and hope somebody eventually buys it. You're giving them a customer for a vehicle before that vehicle even shows up. So why wouldn't you negotiate? With our car buying service, we can help you shop that order among dealers, get actual written out-the-door numbers, compare their offers, and negotiate the deal before you commit to the order. And we're not calling dealers and asking, what's your best price? You know how I feel about that. We want an actual number. Then we go to work on that number. We also want to know what happens to your deposit, what fees the dealer is charging, whether they're adding products or accessories, what happens if pricing changes before delivery, and how available incentives will be handled when your vehicle finally arrives. Because the day your beautiful new vehicle shows up in exactly the color and configuration you've been waiting months for, that's a terrible time to discover that you and the dealer had two very different ideas about what the deal was supposed to be. That deal should be as clear as it can possibly make it before the order gets placed. So if you're thinking about special ordering your next vehicle, don't think our car buying service is only for vehicles already sitting on dealer lots. Special orders are a big part of what we help car buyers with. You pick the vehicle, you pick the color, you pick the options, and we'll help you work on the deal. Visit the Homework Guy website and check out our hassle-free car buying service. It's the big red button on the homepage. Because ordering the vehicle you want doesn't mean giving up your right to negotiate. Now here's some final notes. Make sure the vehicle that arrived is actually the vehicle you agreed to purchase. Factory ordering a vehicle should not make you a weaker negotiator. In some ways, it can make your job easier. You know exactly what you want, you can give the same bill to multiple dealers, you can make them compete for the same sale, and you can negotiate the transaction months before you ever get emotionally attached to the vehicle sitting in front of you. So don't walk into a dealership saying, can you please order this for me? Walk in with the mindset, I'm ready to give one dealership this business. Now, show me why it should be you. And if you're thinking after all of this, I don't want to call six dealers, chase down six salespeople, compare six out-the-door quotes, and spend the next three days trying to figure out who's playing games and who's not. That's exactly why we created the Homework Guy hassle-free car buying service. We can help shop the dealers, get the numbers in writing, negotiate the transaction, and help you know what you're agreeing to before that order goes in. I'm Kevin Hunter, the Homework Guy. Thanks for listening, and we'll see you on the next video.