How Much Off Msrp For New Car
New car buyers face a rapidly shifting landscape where sticker shock is giving way to potential savings. Dealerships are showing increasing willingness to negotiate below MSRP as inventory levels rise and demand softens.
This article breaks down how much below MSRP you can realistically expect to negotiate, what factors influence those discounts, and where you can find the best deals right now.
The MSRP Discount Reality: What's Possible?
Recent data indicates that average discounts are creeping back into the market. While premiums above MSRP were common just months ago, some buyers are now securing deals several thousand dollars below the sticker price.
According to market analysis from Cox Automotive, the average transaction price for new vehicles has started to decline. This signals a return to more normalized negotiation practices.
Specific discounts vary wildly based on make, model, and location. High-demand vehicles, especially popular SUVs and trucks, still command higher prices with smaller discounts.
Factors Influencing Your Discount: The Who, What, Where, When
Who are the best negotiators? Informed buyers armed with research are most likely to secure significant discounts.
What type of vehicle matters? Less popular models, vehicles nearing the end of their model year, and cars with high inventory are prime candidates for deeper discounts.
Where you shop is critical. Dealerships in areas with higher competition or lower demand are more likely to offer aggressive pricing.
When you buy can impact your savings. End-of-month, end-of-quarter, and end-of-year sales events often bring enhanced incentives and greater negotiating leverage.
The "how" involves researching average transaction prices for the specific vehicle you want, comparing quotes from multiple dealerships, and being prepared to walk away if the price isn't right.
Specific Makes and Models: Discount Hotspots
Certain brands are currently offering more significant discounts than others. Ford, Chevrolet, and Jeep, particularly on trucks and SUVs, are showing increasing incentives, according to reports from Edmunds and Kelley Blue Book.
Sedans, which have seen a decline in popularity, often offer better discounts than their SUV counterparts. Consider these models if maximizing savings is your priority.
Electric vehicles (EVs), while still in high demand overall, can sometimes be found with incentives, especially as manufacturers ramp up production and competition intensifies.
Beyond MSRP: Hidden Fees and Negotiation Tactics
Focusing solely on the MSRP discount is only part of the equation. Dealerships often add fees for services like destination charges, documentation fees, and dealer add-ons.
Negotiate the "out-the-door" price, which includes all taxes, fees, and other charges. This provides a clear picture of the total cost of the vehicle.
Consider using online car-buying services to compare quotes and leverage competition. Many dealerships are willing to offer their best price upfront to secure online sales.
Key Negotiation Tactics
Do your homework. Research the MSRP, invoice price, and average transaction price for the vehicle you want. Websites like TrueCar and NadaGuides can provide valuable data.
Get pre-approved for financing. This gives you leverage at the dealership and can help you secure a lower interest rate.
Be prepared to walk away. The willingness to leave the negotiation demonstrates your seriousness and can often lead to a better offer.
Don't be afraid to counter-offer. Start with a price that is below your target and gradually work your way up.
The Future of Car Buying: What to Expect
While discounts are returning, the car market remains dynamic. Supply chain issues and fluctuating demand can impact pricing.
Monitor market trends and be prepared to adjust your strategy based on the latest data. Staying informed is the key to securing the best possible deal.
Keep an eye on manufacturer incentives and rebates. These can significantly reduce the overall cost of the vehicle.
Next Steps for Car Buyers
Begin your research by identifying the specific make and model you want. Then, use online resources to determine the average transaction price in your area.
Contact multiple dealerships and request "out-the-door" price quotes. Compare these quotes carefully and be prepared to negotiate.
Stay informed about market trends and incentives, and be prepared to walk away if the price isn't right. Your patience and persistence will pay off in the end.
