how much can new cars be discounted

[MaximusFitz]

The average discount on a new car in the U.S. typically ranges from 5% to 10% off the Manufacturer's Suggested Retail Price (MSRP), but this can vary dramatically based on the vehicle's popularity, time of year, and your negotiation skills. On high-demand models, you might pay at or above MSRP, while on slow-selling vehicles, discounts can exceed 15-20%.

The key to understanding the discount is the invoice price, which is what the dealer pays the manufacturer. A fair starting point for negotiation is often a small amount (a few hundred dollars) above the invoice price. However, you must also factor in dealer incentives and manufacturer rebates, which are hidden discounts the dealer receives from the manufacturer to help move inventory. These can significantly increase your total savings without necessarily lowering the negotiated price.

Your timing is crucial. The best discounts are usually available at the end of the month, the end of a quarter, and especially during holiday sales events like Memorial Day, Fourth of July, and Labor Day. The arrival of new model-year vehicles (typically in late summer/early fall) is also a prime time to get a deal on the previous year's inventory.

Factor Influencing Discount	Typical Discount Range	Example Vehicles/Situations
High-Demand Models	0% - 2% (or above MSRP)	Toyota RAV4 Prime, Ford Maverick Hybrid
Average Selling Vehicles	5% - 8% off MSRP	Honda CR-V, Chevrolet Equinox
Slow-Moving / Incoming New Model Year	10% - 15+% off MSRP	Sedans in a SUV market, previous model year trucks
Luxury Segment Discounts	7% - 12% off MSRP	BMW 3-Series, Genesis GV70
End-of-Month/Quarter Push	Varies, but often the highest of the month	Last week of September, December
Manufacturer Rebates (Consumer Cash)	$500 - $5,000+ (separate from negotiation)	Domestic brands (Ford, GM, Stellantis) often have high rebates

Ultimately, your ability to research prices online, get quotes from multiple dealers, and be willing to walk away are the most powerful tools for maximizing your discount.

[StCali]

It's all about the deal the dealer needs to make, not the one you want. I focus on the invoice price and any available customer cash incentives. I never negotiate based on the monthly payment; I settle on the final out-the-door price first. If a car has been on the lot for over 90 days, the dealer is more motivated. I always get quotes from at least three different dealerships and use the lowest one as leverage. Being ready to buy that day gives you the upper hand.

[Minnie]

From a data perspective, the average transaction price tells only part of the story. Industry data from sources like Kelley Blue Book and J.D. Power shows discount percentages fluctuate with inventory levels. When supply is high, discounts increase. We saw this in 2023 when discounts returned after the chip shortage eased. The average discount can be misleading; it's more useful to research the specific average days supply for the model you want. A model with an 80-day supply will have a much larger potential discount than one with a 30-day supply.