topic Re: Factory order in Auto Loans

Factory order

bigpoppa09 — Wed, 07 Jul 2021 21:03:42 GMT

Can anyone that has did one shed some light. I am thinking of doing a factory order because i can't find what i want on lot. I have read a deposit is involved lets say i want to use Navy Federal for financing. I don't think that loan draft would be valid by the time car arrives most builds take 2 months at least.

Re: Factory order

Loquat — Thu, 08 Jul 2021 01:58:54 GMT

So you'll pay the deposit to the dealer and when the car arrives or when you at least know it's on the way and a VIN has been assigned, reach out to NFCU for approval. Simple process.

Best of luck to you.

Re: Factory order

Horseshoez — Thu, 08 Jul 2021 02:12:40 GMT

@bigpoppa09 wrote:
Can anyone that has did one shed some light. I am thinking of doing a factory order because i can't find what i want on lot. I have read a deposit is involved lets say i want to use Navy Federal for financing. I don't think that loan draft would be valid by the time car arrives most builds take 2 months at least.

What @Loquat said. You pay the deposit up front and then deal with the loan once the car is either getting close to delivery, or once it is delivered. Back in 2016 my wife ordered a new Mazda3 s GT, there were lots of them on the lots at the time, but they all had automatic transmissions, and my wife and I joke we've never learned how to drive a car with an automatic. Anyway, we special ordered a 6-Speed Manual version of the car from the factory in Japan, and then an earthquake hit and hosed up their supply chain; the order was placed in March, the car was finally delivered to the dealership in mid-July! Once there we arranged for financing as if it was any other car on the lot.

Re: Factory order

Gladius — Thu, 08 Jul 2021 14:08:16 GMT

Once the factory/dealership says the car is ready to ship, you then get the loan approval thru NFCU. They mail you the check and once the car arrives, take check to dealership financing to complete purchase. I think NFCU approvals are good for 45 days....someone can correct me on that if not true.

Re: Factory order

disdreamin — Thu, 08 Jul 2021 17:39:34 GMT

I've had a vehicle on order since April and anticipate taking delivery later this month. The only thing the dealership has from me at this point is an order and a deposit, and I will be working on financing once the vehicle in in transit to the dealership. Not sure if you've ordered before, but I was under the misconception that ordering meant less flexibility in pricing, which did not end up being the case.

Good luck, and hope you are able to get exactly what you're looking for.

Re: Factory order

Horseshoez — Thu, 08 Jul 2021 20:43:40 GMT

@disdreamin wrote:
I've had a vehicle on order since April and anticipate taking delivery later this month. The only thing the dealership has from me at this point is an order and a deposit, and I will be working on financing once the vehicle in in transit to the dealership. Not sure if you've ordered before, but I was under the misconception that ordering meant less flexibility in pricing, which did not end up being the case.

Good luck, and hope you are able to get exactly what you're looking for.

I've read, and experienced, ordering give the buyer more flexibility in pricing. Unlike a car a dealership orders for their stock, and then needs to pay for showroom financing, if you order the car and pick it up as soon as it arrives, the dealership isn't carrying a note on that inventory.

Re: Factory order

Loquat — Thu, 08 Jul 2021 23:18:47 GMT

Until this chip shortage gets resolved there isn't much haggling to be done anyway. Many dealers are holding MSRP or charging over depending on their inventory.

I don't agree with this but not much you can do if you live in an area where dealers are doing this type of stuff.

Take a deal if you can find one and be willing to walk away if you can't is what I'm suggesting to folks these days.

Re: Factory order

Horseshoez — Thu, 08 Jul 2021 23:46:46 GMT

@Loquat wrote:
Until this chip shortage gets resolved there isn't much haggling to be done anyway. Many dealers are holding MSRP or charging over depending on their inventory.

I don't agree with this but not much you can do if you live in an area where dealers are doing this type of stuff.

Take a deal if you can find one and be willing to walk away if you can't is what I'm suggesting to folks these days.

Agreed, so glad I really like my 2006 and have no need, want, or desire to replace it (until next year when the new Golf R is released).

Re: Factory order

disdreamin — Fri, 09 Jul 2021 01:45:52 GMT

@Loquat wrote:
Until this chip shortage gets resolved there isn't much haggling to be done anyway. Many dealers are holding MSRP or charging over depending on their inventory.

I don't agree with this but not much you can do if you live in an area where dealers are doing this type of stuff.

Take a deal if you can find one and be willing to walk away if you can't is what I'm suggesting to folks these days.

I ordered out of state due to the lack of negotiating room locally. The difference in bottom line price for the vehicle I wanted was about $7k and shipping will run me about $1k (if I decide not to fly and drive), so it was a no-brainer for that amount of money. Local dealerships were at MSRP or nearly that, and I ended up ~15% off MSRP all-in with 0% financing locked in at the time the order was placed.

If you're willing to do some online shopping and potentially ship the new vehicle, it opens up a lot of possibilities.

Re: Factory order

Loquat — Sat, 10 Jul 2021 12:39:44 GMT

@disdreamin wrote:
@Loquat wrote:
Until this chip shortage gets resolved there isn't much haggling to be done anyway. Many dealers are holding MSRP or charging over depending on their inventory.

I don't agree with this but not much you can do if you live in an area where dealers are doing this type of stuff.

Take a deal if you can find one and be willing to walk away if you can't is what I'm suggesting to folks these days.
I ordered out of state due to the lack of negotiating room locally. The difference in bottom line price for the vehicle I wanted was about $7k and shipping will run me about $1k (if I decide not to fly and drive), so it was a no-brainer for that amount of money. Local dealerships were at MSRP or nearly that, and I ended up ~15% off MSRP all-in with 0% financing locked in at the time the order was placed.

If you're willing to do some online shopping and potentially ship the new vehicle, it opens up a lot of possibilities.

@disdreamin That's exactly what I did. I had to purchase due to someone smashing into me and my car was totaled.

I worked my deal online because the dealers locally didn't have what I wanted and the few that did was charging well over MSRP.

It was definitely worth it for me to buy in another state. I bought my Scat Pack for under MSRP and got the rebates. The wife and I flew to the other state, took an Uber to the dealership and drove my new rig back home the following day.

Thankfully the dealership was only a state over and the drive back was about 6 hours.

Re: Factory order

dunn2500 — Sun, 11 Jul 2021 03:30:02 GMT

same here........about 6-7k difference.......spent $50 on plane ticket to arizona, left LA @ 11 am ( dealer had uber pick me up) was at dealer for 30 min and drove back, was home at 10pm same night.....math just makes sense, a;lso i made it home on full tank of gas the dealer filled truck up with, lol.....so really didnt cost much........1 day of my time and ticket, by far well worth the hassle.....

Re: Factory order

Gladius — Sun, 11 Jul 2021 13:07:59 GMT

With anyone buying out of state, did you have to pay whatever your state tax is in cash upon delivery of your vehicle for registration? I heard your can't get that included in the price of the car like normal.

Re: Factory order

Horseshoez — Sun, 11 Jul 2021 13:34:43 GMT

@Gladius wrote:
With anyone buying out of state, did you have to pay whatever your state tax is in cash upon delivery of your vehicle for registration? I heard your can't get that included in the price of the car like normal.

I've purchased and leased vehicles in states other than the one I lived in at the time on several occasions. The answer to your question is, "It depends."

For some out of state purchases dealerships can arrange for license payments and plate acquision up front, other times they cannot; a lot depends upon the state you live in and the state you buy in. The last time I did it, I needed to submit the VIN number to my state and they issued me a temporary 30-day cardboard plate, and then once I got the vehicle in my home state, I needed to have it submitted for inspection before they'd allow me to A) pay the taxes and B) buy a license plate.

Re: Factory order

disdreamin — Sun, 11 Jul 2021 16:56:02 GMT

@Gladius wrote:
With anyone buying out of state, did you have to pay whatever your state tax is in cash upon delivery of your vehicle for registration? I heard your can't get that included in the price of the car like normal.

I'll let you know in a few weeks lol. The sales manager has assured me they are prepared to take care of the taxes but I've got a text out to the dealership about the transit tags to be sure they are also taking care of that. The dealership I went with does a good amount of out-of-state sales and I am aware of others from my home state who have purchased through them, so I don't anticipate any issues.

Re: Factory order

Loquat — Mon, 12 Jul 2021 22:57:07 GMT

@Gladius wrote:
With anyone buying out of state, did you have to pay whatever your state tax is in cash upon delivery of your vehicle for registration? I heard your can't get that included in the price of the car like normal.

In my state you take care of taxes yourself, none of it is ever done at the dealership. Since my car was totaled I just moved the plates from my previous vehicle to my new one. In my state I can drive off of my old plates for 30 days and at that point I have to had transferred the plates to the new vehicle or obtain new plates. I have personalized plates so I always transfer.

For those who don't have plates to transfer, most dealers will offer a temporary registration plates or paper tag. I've seen some good for as little as 7 days (referred to as a 7 day drive away), some dealers will issue 30 day tags, and some up to 60 days. Where you live will determine how this type paperwork/registration is handled.

Re: Factory order

disdreamin — Tue, 13 Jul 2021 14:51:59 GMT

@Loquat wrote:
@Gladius wrote:
With anyone buying out of state, did you have to pay whatever your state tax is in cash upon delivery of your vehicle for registration? I heard your can't get that included in the price of the car like normal.
In my state you take care of taxes yourself, none of it is ever done at the dealership. Since my car was totaled I just moved the plates from my previous vehicle to my new one. In my state I can drive off of my old plates for 30 days and at that point I have to had transferred the plates to the new vehicle or obtain new plates. I have personalized plates so I always transfer.

For those who don't have plates to transfer, most dealers will offer a temporary registration plates or paper tag. I've seen some good for as little as 7 days (referred to as a 7 day drive away), some dealers will issue 30 day tags, and some up to 60 days. Where you live will determine how this type paperwork/registration is handled.

Taxes here have always been done at the dealership, I've never dealt with them myself (this includes both when vehicle was PIF or financed). The dealership I am purchasing from has assured me they are equipped to deal with taxes for my state and I know others locally who have purchased from them so I have no reason to doubt their claim. They will also be taking care of the transit tags since I cannot pull them from my state. I'll need to deal with registering the vehicle when I return home with it, but that shouldn't be an issue.

Re: Factory order

Gladius — Tue, 13 Jul 2021 17:22:17 GMT

OK...was just wondering because my wife just recently bought a Tesla from about 4 states over. They gave her a "temp" registration through their state for I think 30 days. She had to register the car in our state and paid the taxes in cash then. A few grand...ouch! We just assumed that was "normal" when dealing with out of state purchases.

Re: Factory order

disdreamin — Tue, 13 Jul 2021 16:48:35 GMT

I am 100% sure it varies state to state, and probably dealership to dealership. If I can't prove the taxes were paid at the time of purchase (and appropriately forwarded to my state) then I'll need to pay them at the time the vehicle is registered. Since we are talking many thousands of dollars, I'll be watching the process closely.

In the end it's fine either way but since we've got 0% financing - assuming we qualify - I'd rather pay the taxes with free money that I can pay off over time rather than in a lump sum.

Re: Factory order

Anonymous — Tue, 13 Jul 2021 17:47:41 GMT

@disdreamin wrote:
I am 100% sure it varies state to state, and probably dealership to dealership. If I can't prove the taxes were paid at the time of purchase (and appropriately forwarded to my state) then I'll need to pay them at the time the vehicle is registered. Since we are talking many thousands of dollars, I'll be watching the process closely.

In the end it's fine either way but since we've got 0% financing - assuming we qualify - I'd rather pay the taxes with free money that I can pay off over time rather than in a lump sum.

^This. I worked for a dealer in Ohio and our finance manager had a map of states that Ohio required us to collect taxes for at the point of purchase. Other states we couldn't collect the tax for, but if the customer wanted to include taxes in the loan we would calculate the amount of the tax and once the loan funded the customer would receive a check that they could then use to pay their taxes with.

Re: Factory order

iced — Tue, 13 Jul 2021 20:08:03 GMT

@Loquat wrote:
Until this chip shortage gets resolved there isn't much haggling to be done anyway. Many dealers are holding MSRP or charging over depending on their inventory.

I don't agree with this but not much you can do if you live in an area where dealers are doing this type of stuff.

Take a deal if you can find one and be willing to walk away if you can't is what I'm suggesting to folks these days.

I never found haggling to be effective in special order cases. I'm basically going to a car manufacturer and telling them I want a specific car in a specific configuration that only they can make, so I don't really have expectations that they're going to budge off MSRP given they're the one and only place I can buy said car from.