How much can I get off MSRP?

How much of a discount can I get off of a new car’s MSRP? I’m in the market for a new car and I don’t want to pay the full MSRP.

Answer
“Good for you for researching before making such a big purchase!
2% above the dealer’s invoice price is a good deal. The dealer’s invoice price is what the dealer paid the manufacturer. The MSRP is the manufacturer’s suggested retail price and is only a recommendation.
The good news is that dealers expect you to negotiate when buying a new car. Start from the dealer’s price and go up instead of negotiating from the MSRP down. While your target is around 2% above the dealer’s invoice price, leave some wiggle room for the dealership to budge.
Before you negotiate, do your homework on any potential customer or dealer rebates, specials, and dealer invoice pricing. The more knowledgeable you are about your new car’s pricing, the better negotiating you can do.
Keep in mind that when you buy a new car, the lender will require full coverage. The more coverage you have, the more expensive car insurance is, but you don’t have to drain the bank to have the right coverage. Try using the Jerry app. Jerry compares rates from the top providers and delivers the best deals to your phone in minutes for free.
Good luck negotiating for your new car!”
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Rachel Juillerat
Answered on Sep 10, 2021
Rachel Juillerat has her Master's in Publishing & Writing from Emerson College. You can view her work in the Independent, Cupid's Pulse, and the Penmen Review. She has worked in personal finance for five years before transitioning to insurance. She lives in Boston, where she spends her time exploring small New England towns, learning new skills, and napping through her cat's zoomies.
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