Car Buying Tips: The Ultimate Guide to Purchasing a New Car

Summary

Navigating the car-buying process can be overwhelming, but custom ordering your vehicle might be the best way to get the lowest price, the most for your trade-in, and all the options you desire. This guide explains why ordering a new car can save you thousands of dollars and offers practical tips for making the most of your purchase.

Why Custom Ordering is the Best Option

Pay for What You Want, Not What You Don't

When you custom order a vehicle, you have the freedom to choose exactly what you want. Many manufacturers offer a wide range of options, but the vehicles on the lot are often configured based on general sales trends rather than individual preferences.

• Customization: Why pay for a $195 satellite radio when you only need an MP3 jack at no extra charge?
• Color Choices: Why settle for your second choice of color?
• Specific Features: Why compromise on features like reverse sensors just because the available vehicle is close to what you want?

By custom ordering, you ensure that every dollar spent goes towards features you actually want and will use.

Incentives: Now or Later

Most manufacturers offer incentives that can be applied either at the time of ordering or when the vehicle arrives. This flexibility allows you to choose the best deal available.

• Current Incentives: Take advantage of current cash-back offers, low financing rates, or other incentives.
• Future Incentives: If better incentives are available when your vehicle arrives, you can opt for those instead.

This approach is not universal, so it's essential to check with your dealer to confirm the availability of this option for your chosen make and model. For a comprehensive comparison of incentives, visit Automobile Magazine.

Lower Dealer Costs

Contrary to popular belief, custom ordering a vehicle often costs less than buying one off the lot. Here's why:

• Reduced Inventory Costs: Dealers pay interest on cars that sit on the lot for extended periods. Custom-ordered vehicles don't incur these costs.
• Lower Overhead: Dealers save on insurance, lot fees, and other miscellaneous costs associated with keeping a vehicle on the lot.
• Middleman Role: When you order a vehicle, the dealer acts as a facilitator, connecting you directly with the manufacturer and handling the necessary paperwork.

Many dealers are willing to sell ordered vehicles at invoice price minus any applicable rebates. Some may even dip into their holdback to secure the sale.

Trade-In Options

Trading in your current vehicle can be a bit more complicated when custom ordering, but there are several strategies to consider:

1. Trade Now: If you have alternative transportation, trading in your vehicle immediately is the best option.
2. Dealer Loaner: Some dealerships may offer a rental or loaner vehicle while you wait for your new car. This can be costly but might still be worth it.
3. Keep Driving: Continue using your trade-in with pre-agreed stipulations on depreciation. Ensure you have a written agreement detailing the expected depreciation based on mileage and condition.

Important Tip

If you choose to keep driving your trade-in, make sure to firm up the depreciation terms. Document the expected mileage, condition, and maintenance requirements to avoid any surprises when your new vehicle arrives.

The Value of Patience

The key to getting the best deal on a new vehicle is planning and patience. By custom ordering, you can save thousands of dollars, but it requires the willingness to wait.

Interesting Stats

• Savings: Custom ordering can save you between $1,000 and $7,000 compared to buying off the lot (source: Consumer Reports).
• Depreciation: New cars lose about 20% of their value within the first year (source: Edmunds).
• Incentives: Manufacturers offer an average of $3,000 in incentives per vehicle (source: J.D. Power).

Conclusion

While the best financial advice is often to buy a low-mileage used vehicle, if you must have a new car, custom ordering is the way to go. It allows you to get exactly what you want, take advantage of the best incentives, and save money in the process. For those who can wait, the rewards are well worth it.

For more tips on buying new and used cars, visit Consumer Reports and Edmunds.