how far down can i get price of new car

[StClayton]

You can typically negotiate a new car's price down by 7% to 12% below the Manufacturer's Suggested Retail Price (MSRP), depending on the vehicle's popularity, model year, and current inventory levels. For an average $45,000 car, this translates to a potential savings of $3,150 to $5,400. The final price is influenced by several key factors, not just the markup on the MSRP.

Key Factors Determining Your Negotiating Power

• Vehicle Demand: High-demand models, like certain hybrids or trucks, often sell at or near MSRP. Conversely, slow-selling models or those at the end of their model year have much more room for negotiation.
• Dealer Incentives: Manufacturers offer hidden rebates and bonuses to dealers, known as "dealer holdback" and "factory-to-dealer incentives." These are not advertised to customers but give the dealer room to lower the price while still making a profit.
• Timing: The best time to get a deal is at the end of the month, quarter, or calendar year when salespeople and dealerships are trying to hit volume targets for bonuses.

A realistic target is to aim for a price close to the invoice price (what the dealer paid the manufacturer). With available online tools, you can often find this figure. The table below illustrates average discount potential across different vehicle segments based on industry data.

Vehicle Segment	Average MSRP	Typical Negotiation Range (Below MSRP)	Potential Savings	Key Influencing Factor
Luxury Sedan	$58,000	8% - 15%	$4,640 - $8,700	High dealer incentives, competition
Mid-Size SUV	$42,000	6% - 10%	$2,520 - $4,200	High demand, but high inventory
Compact Car	$26,000	4% - 8%	$1,040 - $2,080	Lower margins, high volume
Full-Size Truck	$55,000	5% - 9%	$2,750 - $4,950	High demand, but significant incentives
Electric Vehicle (EV)	$54,000	0% - 5%	$0 - $2,700	Varies widely by brand and available tax credits

Your strongest strategy is to secure online price quotes from multiple dealerships and use them as leverage. Focus on the out-the-door price, which includes all fees and taxes, rather than just haggling over the monthly payment. Being pre-approved for financing from your bank or credit union also gives you a strong position to negotiate the dealer's financing rate.

[DiAmara]

It's all about the deal the dealer is getting from the manufacturer, not the sticker price. I always research the invoice price online before I walk in. My goal is to get within a few hundred dollars of that number. I email several dealers with the exact model I want and have them compete for my business. I never negotiate based on the monthly payment—only the final total price. The last car I bought, I saved over $4,000 just by doing my homework and being ready to walk away.

[DeBrody]

The discount depends heavily on what's sitting on the lot. If a new model year is arriving, dealers are highly motivated to clear out last year's inventory. Time your purchase for the end of the month, especially on a rainy Tuesday evening when the showroom is empty. Know about available rebates and customer cash offers from the manufacturer's website. These are separate from dealer discounts and come right off the top. Your leverage increases dramatically if you have a car to trade-in, as that's another profit center for them.

[Hugo]

Many people forget that the "documentation fee" and other add-ons are where dealers make back some profit. After you agree on a price, they might try to sell you undercoating, fabric protection, or extended warranties. These are almost pure profit. Politely decline all of them. Your real goal should be the out-the-door price, which includes all mandatory fees. Get that final number in writing before you discuss anything else, including your trade-in or financing.

[LaElena]

I look at it from the dealer's perspective. They have sales targets and bonuses to hit. I use that to my advantage. I found the exact car I wanted, got a quote from one dealer, and then called another dealership across town. I was straightforward: "I have an offer for X amount. Can you beat it?" They almost always can, or they'll throw in something like free maintenance. It’s a game. The key is to be polite but firm and show them you’re a serious buyer who has done the research. You’d be surprised how far they’ll go to make a sale.