How much is reasonable discount from MSRP when you buy a car? I got MSRP quote from on-line.?

Question

I asked $2000 discount from one dealer, but I am thinking about asking $2500 from other dealer.

Answer 1

You are very fortunate having answers from Bostonian and Earnhardt both are experts in the field and know the process,
I like to add a fair deal will be somewhere between 5% to 7% to the dealer.
I cant tell by your question if you have shopped online, if you have not go to my website http://www.usedcartips.org/ click on edmonds.com and get several free quotes to work with, you will be well prepared.
on a last note...there is huge profit in used cars, but new its all about volume and gaining a service customer with very little profit selling a vehicle.

Answer 2

Never ask for a discount from MSRP. Do your homework and find out what the car cost the dealer -- dealer invoice is what you're looking for. Even that is an artificial number -- more on that in a moment.

Next, find out if there are any publicized incentives. These are pretty easy to locate as they're usually heavily advertised.

Now, take the dealer invoice and deduct 5% from it. That accounts for the holdback (typically 3% on American brands) and any unpublicized factory-to-dealer incentives. Now deduct the advertised incentives. That's very close to a true zero-profit deal for the dealer. That's where you start - and not a penny higher!

Now, take your zero-profit price above and add 1% - 2% of the factory invoice price to it. That's your best deal bargaining price. You may not be able to deal on popular models in that range, however.

At any case, 1% over dealer invoice minus any advertised incentives should be your "walk" price. If the dealer won't deal at that price, get up and walk out. Make sure he has your phone number though! You'd be surprised how often they'll call you and come down to your bargaining range!

BTW, you'll NEVER get the best price on-line! Face-to-face bargaining is the ONLY way to get the best possible deal.

Answer 3

I am a dealer and it depends on the MSRP. The higher the MSRP, the more discount available. Any car with an MSRP under 16K will only have a few hundred dollars to discount plus any current rebates or incentives. A 30,000 MSRP will have 2-3k usually depending on the make and model.