You can typically lower a new car's sticker price by 7% to 10%, which often translates to $2,500 to $5,000 off the Manufacturer's Suggested Retail Price (MSRP) on an average vehicle. The exact amount depends heavily on the vehicle's popularity, the time of the month or year, and your negotiation strategy. For high-demand models, you might only see a 2-3% discount, while on slow-selling vehicles or at the end of a model year, discounts can exceed 15%.
The most significant factor is the vehicle's invoice price, which is what the dealership pays the manufacturer. Your goal is to negotiate a final price close to or even below this figure. Dealers make up the difference with factory incentives and holdback, a percentage of the invoice price (typically 2-3%) that the manufacturer pays the dealer after the sale. Knowing these numbers gives you immense leverage.
| Vehicle Scenario | Typical Discount Range (% off MSRP) | Approximate Dollar Savings (on a $35,000 car) | Key Factors |
|---|
| High-Demand / New Redesign | 0% - 3% | $0 - $1,050 | Limited supply, high consumer interest. |
| Average Selling Model | 7% - 10% | $2,450 - $3,500 | Standard negotiation, common incentives. |
| Slow-Selling / End of Model Year | 12% - 15%+ | $4,200 - $5,250+ | Dealer motivation to clear inventory. |
| Luxury Sedans / Large SUVs | 8% - 12% | (Varies with higher MSRP) | Higher profit margins, more room to negotiate. |
To maximize your discount, get quotes from multiple dealerships online and be prepared to walk away. Timing is crucial; shopping at the end of the month, quarter, or year when salespeople are trying to meet targets can lead to better deals. Focus on the out-the-door price, not the monthly payment, to avoid being confused by financing tricks.
