how much can you negoiate off new car msrp

[Rivera]

The average discount off a new car's MSRP (Manufacturer's Suggested Retail Price) is typically between 5% and 10%, but this can vary significantly. Your negotiation power depends heavily on the vehicle's popularity, inventory levels, the time of the month or year, and your preparation. For high-demand models, you might pay at or above MSRP, while for slow-selling vehicles, discounts can exceed 10%.

Your most powerful tool is research. Before stepping into a dealership, know the vehicle's invoice price (what the dealer paid the manufacturer) and the average transaction price in your area using sites like Edmunds, Kelley Blue Book (KBB), and TrueCar. This data establishes a realistic starting point for negotiation.

Focus on the vehicle's out-the-door price, not just the monthly payment. A dealer can make a low monthly payment seem attractive by extending the loan term, which often costs you more in the long run. Negotiate the total price first, then discuss financing.

Timing is critical. The best deals are often found at the end of the month, quarter, or model year when dealers are motivated to hit sales targets and clear out old inventory. Weekdays are generally less busy, giving you more undivided attention from the sales staff.

Be prepared to walk away. This is the ultimate negotiating tactic. If the dealer isn't meeting your target price, politely leave. Often, this will result in a follow-up call with a better offer.

Vehicle Type / Scenario	Typical Negotiation Range off MSRP	Key Influencing Factors
High-Demand Models (e.g., Toyota RAV4 Hybrid, Ford Bronco)	0% - 3% (or even above MSRP)	Low inventory, high consumer demand, limited production.
Average-Selling Sedans/SUVs	5% - 8%	Balanced inventory, competitive segment, standard incentives.
Slow-Moving/Luxury Models	8% - 12%+	High dealer inventory, model year-end clearance, high profit margins.
End-of-Month/Quarter	Additional 2% - 5%	Salesperson and dealer urgency to meet bonus quotas.
Using Factory Incentives	Varies (can be significant)	Customer cash rebates, low APR financing offers from the manufacturer.

[SanZane]

Do your homework online first. I never talk numbers until I know the invoice price and what others are actually paying. I start my offer about 8% below MSRP for an average car, expecting to settle around 5% off. If it's a hot model, I'm happy to get it at sticker price. The key is being ready to leave if the deal isn't right. That's when they usually call you back.

[McAllison]

It's less about a fixed percentage and more about market conditions. I look at the supply and demand for the specific trim level I want. If the dealer's lot is full of them, I have more leverage. I also check for any unadvertised factory-to-dealer incentives, which are hidden rebates that give the dealer more room to negotiate. My goal is to beat the average transaction price I found on Edmunds, not just the MSRP.

[SanEmerson]

I keep it simple and focus on the final price, not the monthly payment. I go in pre-approved from my credit union so I know what rate I should get. Then, I negotiate the car price and the trade-in value separately. I've found that being friendly but firm, and showing I've done my research, makes the process much smoother. I usually aim for a discount that covers the sales tax, at a minimum.

[OSkylar]

As a parent on a budget, every dollar counts. I wait for holiday sales events and the end of the model year for the deepest discounts. I focus on reliable, practical cars that aren't the flashiest, because they often have the best deals. I'm not afraid to email several dealers with the exact car I want and have them compete for my business. This saves time and usually gets me a better price than negotiating in person.