Order a new car from the factory and you could save

With vehicles in short supply at the dealership, more shoppers are ordering cars from the factory.

In return for a wait of a few weeks or months, you get exactly what you want. In the current market, you’re likely to save money too.

While Americans have long been accustomed to finding a car and driving off the same day, "build-to-order" is common in Europe, and it's embraced by electric carmakers such as Tesla, Lucid and Rivian. Now that supply chain delays have created bidding wars for vehicles that land on dealer lots, build-to-order is having a moment in the U.S.

Ford allows buyers to order some popular models online and have them delivered to a dealership. The company says it took 74,000 new vehicle retail orders in November — compared with 10,000 the previous November.

"That seems to be the hot move right now," says Matt Jones, director of corporate marketing for automotive shopping site TrueCar. "Folks want to get exactly what they want as opposed to buying what’s available."

Is build-to-order cheaper? It can be

Ordering from the factory might also help you avoid markups from the dealer, says Ron Montoya, senior consumer advice editor and content strategist for car research site Edmunds.

Montoya’s aunt recently shopped for a Subaru Crosstrek and was offered a car on the lot at a local dealer at $3,000 above sticker price. Instead, she asked the dealer to order one from the factory and paid only the sticker price. "And these days, sticker price is a good price," he notes.

For a dealer, a special order represents a sure sale rather than the risk that you find your ideal car elsewhere.

For the consumer, build-to-order gives time to reflect and make wise choices. Kelley Blue Book calls it a "smart life hack" because "it cuts you out of the emotional process of seeing a car … and wanting it now."

How to place a factory order

Shoppers typically order a vehicle one of two ways:

1. Configure a vehicle on the manufacturer’s website and submit your order through an assigned dealer. The MSRP you see is not guaranteed. Negotiations are handled through the dealer.
2. Negotiate and order directly with a dealer you choose.

Before signing anything, get these details from the dealer:

Time frame: The dealer can't give you an exact delivery date, but its ordering system should be able to give you an estimate.

Changes: Clarify the points of no return. You may change your mind about color or options. You may be able to back out completely by a certain date.

Deposit: Typically this is $500 to $1,000. Ask what happens to your deposit if you decide to back out.

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Price: While it’s not binding, agree on the purchase price and ask that the paperwork you receive reflect that agreed-upon amount. It should include the negotiated price of the car, any dealer-installed extras that you agree on, taxes, title and license.

Before your vehicle arrives

Once you get a delivery date:

Arrange financing. Find a preapproved car loan. You’ll avoid surprises with your credit and have a rate for the dealership to try to beat.

Have your trade-in appraised. A dealership won't give you a trade-in price until you're ready to sign papers on your new car. Quotes from internet retailers such as Carvana can help you get the most value.

Ask about incentives. It doesn’t hurt to check the manufacturer’s website or ask your sales representative in case new incentives are available.

When your new vehicle arrives

Act quickly. Grab it as soon as you can, Montoya advises.

Inspect the car. Look the car over to make sure the vehicle matches what you ordered and hasn’t been damaged in transit.

Talk over any trade-in. Ask the dealer to appraise your old vehicle and show them any competing offers.

Review the deal with the finance office. If the agreed-upon price isn’t honored, ask why. You aren't obligated to buy a vehicle on new terms, just like the dealer isn't obliged to honor the old ones.

Philip Reed writes for NerdWallet. Email: articles@nerdwallet.com. Twitter: @AutoReed.