how low can a dealership go on a new car

[LaClaire]

A dealership's bottom-line price on a new car is typically a few hundred dollars above its invoice price, not the MSRP. The actual discount depends on factors like manufacturer incentives, the car's sales velocity, and the time of the month or year. Invoice price is the amount the dealership pays the manufacturer, but it's not their true cost due to hidden incentives like holdback, a percentage (often 2-3%) of the MSRP or invoice price that the manufacturer refunds to the dealer after the sale.

Here’s a breakdown of key pricing factors:

Factor	Description	Typical Impact on Final Price
Manufacturer Incentives	Rebates and bonuses paid directly to the dealer by the manufacturer to help move specific models.	Can range from $500 to $5,000+ off the invoice price.
Dealer Holdback	A percentage of the MSRP (e.g., 2-3%) refunded to the dealer by the manufacturer after the sale.	Effectively lowers the dealer's true cost below the invoice price.
Model Popularity	High-demand, low-supply vehicles have little discount room. Slow-selling models have more flexibility.	Popular models may sell at MSRP; slow sellers can be below invoice.
Time of Month/Year	Dealers are motivated to hit monthly sales quotas. End-of-model-year clearance offers the best deals.	Quota pressure can erase the dealer's final profit margin.

To get the best price, your goal is to negotiate from the invoice price upward, not down from the MSRP. Research the invoice price online, understand current manufacturer-to-dealer incentives, and be prepared to make an offer that leaves the dealer a small, reasonable profit, often called the "dealer participation" fee, which might be $300 to $800. The lowest price is usually found on an unpopular model at the end of the month or model year when the dealer is highly motivated to hit a sales target.

[OIan]

They can go surprisingly low, especially if the car's been sitting on the lot. The real number to know is the "invoice price," which is what the dealer paid. But even that's not the whole story. Dealers get secret rebates and bonuses from the manufacturer. If a car isn't selling, they might let it go for just a few hundred bucks over their actual cost just to free up space and hit their monthly sales goal. Your best bet is to do your homework on the invoice price and make a reasonable offer.

[MacGabrielle]

It's less about a magic number and more about their motivation. A dealership's true cost is often below the invoice price thanks to holdback and factory incentives. Their bottom line is determined by how badly they need to sell that specific car to meet a quota or clear inventory. On a high-demand model, they might not budge much. But on a slow-moving vehicle, they could sell it at a genuine loss if it helps them secure a larger manufacturer bonus for hitting a volume target.

[AnaAnn]

I focus on the out-the-door price, not the discount. I research the fair market price using sites like Edmunds or Kelley Blue Book, which already factor in local incentives. Then, I contact several dealerships via email, asking for their best out-the-door price on a specific vehicle. This makes them compete against each other transparently. The one that needs the sale the most will often come in with a price that's very close to their absolute bottom line without me having to haggle face-to-face.

[CatherineLee]

Think of it like this: the dealership is a business that needs to turn inventory quickly. Their absolute bottom price is the point where selling the car is still better than not selling it. This includes covering their overhead and making a tiny profit, even if it's just a few hundred dollars. The leverage is all in the timing. Shopping on the last day of the month, especially for a model from the previous year, puts you in the strongest position. The sales manager is looking at their numbers and might approve a minimal-profit deal to hit a bonus threshold.