When you’re in the market for a new ride, have you ever considered buying a car from the factory?
It’s certainly an option that is growing in popularity, and there are some definite pros and cons to consider before making your decision.
“I was surprised by how easy it was,” said Dillon Griffith, a Fresno, California, native who custom-ordered a Subaru Outback in 2021 after becoming disappointed by the lack of Outbacks in dealer stock. “I sat down with the salesman and he walked me through the order guide,” he added.
In this article, we’ll take a look at both sides of the coin and help you decide if ordering from the factory is right for you.
How to Order a Car Directly From the Factory
If you’ve decided that buying from the factory is the way to go, there are a few things you need to know in order to make the process as smooth as possible.
For starters, you’ll need to find a dealership that is authorized to sell factory-direct cars. The dealership will be the one actually placing the order with the factory, so it’s important to find one that you trust.
This list includes but is not limited to Tesla, Mazda, Subaru, and Chevrolet.
You’ll also need to be aware of the fact that you won’t have as much negotiating power when it comes to the price of the car.
The factory-direct model relies on the customer being willing to pay a set price for the car, so there’s not a lot of room for haggling.
However, you may be able to negotiate extras like free shipping or a longer warranty.
The Pros and Cons of Buying From the Factory
So, what’s the catch?
Why wouldn’t everyone just buy their cars from the factory if it’s so easy?
Well, as with anything in life, there are pros and cons to consider. Let’s take a look at each side of the argument.
- You can order exactly the car you want, down to the last detail
- The process is generally faster than buying from a dealership
- You’ll have the option to cancel in case you change your mind
- You’ll have an extended wait time
- Not much for negotiations
- Credit can change from reservation to delivery
It’s also important to keep in mind, that in terms of price, ordering from a factory is not the most consumer-friendly. When you go directly to dealerships it allows you to shop around different price quotes.
This means if you’re the type of person who likes to haggle over the price of a car, buying from the factory probably isn’t the best option for you.
Is Buying from the Factory Coming to America?
Right now, the factory-direct model is most popular in Europe and Asia. In America, the system just doesn’t seem to have taken off in the same way.
There are a number of reasons for this, but the most likely explanation is that dealerships in America are just too big and powerful. We’d be remiss not to mention the immense amount of lobbying power protecting the franchise laws in the US.
The dealership model is so ingrained in American culture that it would be very difficult for the factory-direct model to gain any real traction.
That being said, there are a few companies that are starting to experiment with the model (Tesla and Chevrolet, for example), so it’s certainly something to keep an eye on in the future.
So, there you have it!
Everything you need to know about buying a car directly from the factory.
Weighing the pros and cons is important, but in the end, it’s up to you to decide what’s best. We will say, however, that due to the pandemic-related supply chain disruptions, it may be wise to at least consider ordering from the factory.
Good luck and happy shopping!