Wednesday, October 27, 2010

Do you have time to wait?

If there is no priority for a new vehicle in your life, but you'd like one regardless, a factory order is a good way to ensure you get the best possible arrangement with regards to pricing or financing. When doing a F/O, you are locked in at the incentives (think 0%, employee pricing, etc..) at which you order, however if the incentives are different when the vehicle arrives, you are free to switch if you want.

For example:
  • I want to finance and it is currently under employee pricing with a fixed rate of 6.99%. 
 If ordered order now, under employee pricing, chances are by the time it gets here the incentives will have switched. You can verify this with your sales rep (we are NOT supposed to tell you, or lead on to the fact that we DO infact know which incentives will be running until when). I even have a calender style time table of the different yearly incentives and their start/finish dates.

With this knowledge in hand, order at the end of the incentives you are currently in. This way, you are locked in at the current incentives, but have the option to switch afterward. One piece of advice though:
  • The salesman and his/her managers are going to try and convince you that the incentives you bought under are clearly better, regardless of your situation/requirements. This is because is does take a decent amount of work to swap into new incentives. You should find the new incentives, understand them and compare with what you ordered under. You might find the dealer very difficult to negotiate with at this point because they feel you are already committed; your car is here, you are all hyped up to get it. Stand fast! If you ordered at 0%, but wanted all along to pay cash, check the new incentive! If you were at $40,000 sale price before with 0%, chances are the new incentives will be cash off and a shitty rate!
    • So if you ordered at $40,000/0% with $0 delivery allowance and now it's 6.99% with $5,000 delivery allowance you could easily swap to $35,000 cash + tax (the delivery allowance is ALWAYS before taxes).
    • Figure out what makes the most sense for you and go from there!


  1. Great advice!

    Common sense to be critical in general too; a salesman's incentive is to give you the least for the highest price, not to give you a good deal.

  2. cool, another piece of good advice, thanks!

  3. im just curious to know where you work? you seem to know a lot!

  4. very interesting, will be back!

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  6. he salesman and his/her managers are going to try and convince you that the incentives you bought under are clearly better,

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