Question about a Factory Order

[Anonymous]

I have recently started the process of buying my first car.  The dealer needs to order the car with specific options.  I was told that I would need to give them a small deposit and pay for the car when it arrived.  

I have a few questions:

(1)  How do I know the dealer will not change the price of the car when it arrives?  The purchase price is actually not on the PO.  There is a separate document with the quote but is that quote binding?  I would hate to lose the deposit if the dealer decides to renegotiate the original quote.

(2) Since the car will take about 3-4 months to arrive, should I wait until a month before ETA to apply for auto loans?  How long does it usually take for the loan to deposit into my account?

Any advice would be greatly appreciated. 

[Watchmann]

Price needs to be negotiated up front before the dealer places the order. The dealer may want to put a clause in that if his invoice price goes up from the manufacturer that incremental value can be added to the final price (not likely in this environment). But don't order the car without knowing what the agreed upon price is. Get it all in writing.

If you are sure you won't have any problem securing financing you can do that once you get notice when the car will be available from the factory. It only takes a day or two to get the loan approved, sometimes less.  You won't actually see the money deposited into your account, it goes directly from the lender to the car dealer.

Message Edited by Watchmann on 02-20-2010 01:20 PM

[Anonymous]

Much thanks, Watchmann.  In terms of getting it all in writing, would the final price on the purchase order be enough to be legally binding?  What does this sort of documentation usually look like?  The PO I was emailed was a printout of a website.

[MattH]

---

@Anonymous wrote:
Much thanks, Watchmann.  In terms of getting it all in writing, would the final price on the purchase order be enough to be legally binding?  What does this sort of documentation usually look like?  The PO I was emailed was a printout of a website.

---

This is what economists call a buyer's market.  That means you tell the dealer, "you will not get my signature on any piece of paper before you have convinced me the paper I am signing does what you verbally claim it does." If you are not sure you are protected, then don't sign until you are sure. 

[Anonymous]

Interestingly enough, I am an economist.  Just an economist who has never purchased a car. 

I received a copy of the original PO in the mail.  It has all the relevant info on it, sales price, options, and sales contract details.  Thanks for the advice to a nervous buyer.  My car should be ready for pick up in three months and I'll take Watchmann's advice and hold of on financing until two weeks before pickup.

[Bocklin]

Just remember, you haven't actually bought the car until you drive it off the lot, even if you have signed all the paperwork... you have to take delivery of the vehicle. If they change anything on your agreement just walk away.

[Anonymous]

---

@Bocklin wrote:
Just remember, you haven't actually bought the car until you drive it off the lot, even if you have signed all the paperwork... you have to take delivery of the vehicle. If they change anything on your agreement just walk away.

---

but accept the fact they will keep the deposit.

They ordered a car and paid for it to your specifics, specifics that if they felt fit into their market they would already have units configured that way. They cannot send the car back should you decline.

Most dealerships are very above board on an order.

[Anonymous]

Please keep in mind that you can back out of the deal at any time. This is why most dealerships don't like ordering cars because if you back out of the deal most of the time they have a ordered car that most people don't want. Also dealerships have 15 days to pay for that car meaning if you pick up the car before them 15 days it's been sitting their they have no money tied into that car. When i used to work at a dealership they used to always try to push us to sell cars on the lot or dealer trade before ordering a car for someone.

Note that if you didn't sign anything about if you back out of the deal you can get your down payment back. Then chances are that they won't give you that money back. With all that said a dealer knows their cost upfront and i really don't think you will have any problems. Good luck with everything!!