How to Negotiate New Car Price: Scripts, Tips & Strategies That Work
Stop overpaying for new cars. Learn the exact phrases, tactics, and timing that get you the best deal every time.
Key Takeaways
- •Always negotiate the out-the-door (OTD) price, not monthly payments
- •Email multiple dealers for quotes before visiting in person
- •5-10% off MSRP is achievable on most new cars
- •Refuse all dealer add-ons unless you specifically want them
- •The best time to buy is end of month, quarter, or year
1. Understand How New Car Pricing Works
Before you can negotiate effectively, you need to understand the numbers dealers work with:
MSRP (Sticker Price)
The manufacturer's suggested retail price. This is your starting point, not the final price.
Invoice Price
What the dealer supposedly paid for the car. Typically 5-8% below MSRP, but dealers get additional holdback and incentives.
Dealer Holdback
A hidden 2-3% rebate manufacturers pay dealers after the sale. This means dealers can profit even selling "at invoice."
Out-the-Door (OTD) Price
The total amount you pay including tax, title, registration, and all fees. This is the only number that matters.
Pro Tip: Never negotiate based on monthly payments. Dealers can manipulate loan terms to make any price look affordable. Always focus on the total out-the-door price.
2. Do Your Research First
Knowledge is your greatest leverage. Before contacting any dealer:
Find Out What Others Are Paying
Use CarWhere to see real transaction prices from actual buyers. This shows you what people are actually paying at specific dealerships—not asking prices or estimates.
Check Current Incentives
Manufacturers offer rebates, special financing, and lease deals that change monthly. Check the manufacturer's website for current offers in your area.
Know Your Target Price
Based on your research, set a realistic target:
- High-demand vehicles: 0-3% off MSRP (may have markups)
- Average sellers: 5-8% off MSRP
- Slow sellers / End of model year: 10-15%+ off MSRP
3. The Email Negotiation Strategy
Email negotiation is often more effective than in-person because you avoid high-pressure tactics and can easily compare offers.
Step 1: Contact Multiple Dealers
Email the internet sales department at 5-10 dealers within your region. Cast a wide net—some dealers are more aggressive than others.
Step 2: Use This Email Template
Subject: Quote Request - [Year] [Make] [Model]
Hi,
I'm looking to purchase a [Year] [Make] [Model] [Trim] within the next week. I've already researched pricing and I'm contacting several dealerships.
Could you please provide your best out-the-door price including all taxes, fees, and charges? I'm not interested in any dealer-installed accessories or add-ons.
I'm a serious buyer and will purchase from the dealer with the best price.
Thank you,
[Your Name]
Step 3: Play Dealers Against Each Other
Once you have quotes, email the lowest one to other dealers:
Hi [Name],
Thanks for your quote of $[X]. I've received a competing offer of $[Y] OTD from another dealer. Can you match or beat this price? I'd prefer to buy from you due to [location/reviews/etc].
[Your Name]
4. Negotiating In Person
If you prefer face-to-face negotiation or want to close a deal you started via email:
Before You Go
- Have your target OTD price written down
- Bring competing quotes (printed or on your phone)
- Get pre-approved financing from your bank or credit union
- Be prepared to walk away—this is your strongest tool
At the Dealership
- Don't reveal your budget or monthly payment target
- Decline the test drive until you've discussed price (it builds emotional attachment)
- Always negotiate the price before discussing your trade-in
- Don't mention you're paying cash until the price is agreed
Power Move: If they won't meet your price, stand up and say "Thank you for your time, I'm going to check with [Competitor Dealer]." You'll often get a better offer before you reach the door.
5. Word-for-Word Negotiation Scripts
Opening the Negotiation
"I've done my research and I know what this car is selling for. I'm ready to buy today if we can agree on a fair price. What's your best out-the-door price on this vehicle?"
When They Quote MSRP
"I appreciate that, but I've seen this same car selling for [X] at other dealers. I was hoping we could get closer to that number. What can you do?"
When They Say "Let Me Talk to My Manager"
"Before you do that, I want to be clear about what I'm looking for: $[target OTD price] out the door, with no add-ons. If you can make that work, I'll sign today."
When They Push Monthly Payments
"I'm not focused on the monthly payment right now. I need to understand the total out-the-door price first. Once we agree on that, we can discuss financing."
Final Push (If Close But Not There)
"We're close, but I have a firm offer of $[competing price] from [dealer name]. If you can match that, you have a deal right now. Otherwise, I'll need to go with them."
6. Handling Fees & Add-Ons
Legitimate Fees (Non-Negotiable)
- Sales tax: Set by your state
- Title & registration: State fees
- Destination charge: Manufacturer fee (same at all dealers)
Negotiable Fees
- Doc fee: Should be under $500; many states cap this
- Dealer prep: Refuse this—they get paid by the manufacturer
- Advertising fee: Ask to have it removed
- Market adjustment: Pure profit—negotiate hard or walk
Common Add-Ons to Refuse
| Add-On | Dealer Price | Actual Value |
|---|---|---|
| Nitrogen tire fill | $199-$299 | ~$20 (or free at Costco) |
| Paint protection film | $995-$1,995 | $300-$500 aftermarket |
| Fabric protection | $299-$499 | $20 can of Scotchgard |
| Window tint | $499-$799 | $150-$250 at a tint shop |
| VIN etching | $199-$399 | $25 DIY kit |
Script: "I'm not interested in any dealer-installed accessories or protection packages. Please remove those from the quote. I only want the vehicle as it came from the factory."
7. Best Time to Negotiate
Best Times to Buy
End of Month
Salespeople need to hit quotas. Last 3 days are best.
End of Quarter
March, June, September, December—manufacturers push volume.
Monday-Thursday
Less crowded, salespeople have more time to negotiate.
Model Year Changeover
August-October when dealers need to clear last year's models.
Times to Avoid
- New model launches (high demand, no discounts)
- Weekends (crowded, less negotiating leverage)
- Tax refund season (February-April—dealers know buyers have cash)
8. Common Mistakes to Avoid
Negotiating Monthly Payments
Dealers can stretch terms to 84 months to hit your payment target while charging more overall.
Falling in Love with One Car
Emotional attachment weakens your negotiating position. Be willing to walk away.
Revealing Your Budget
Never tell them how much you can afford. They'll find a way to spend exactly that.
Not Getting Competing Quotes
Without alternatives, you have no leverage. Always get at least 3 quotes.
Rushing the Deal
Take your time. Urgency benefits the dealer, not you.
Frequently Asked Questions
How much can you negotiate off a new car?
Most buyers can negotiate 5-10% off MSRP on new cars. Popular models may only offer 2-3% off, while slow-selling inventory can see 15%+ discounts. Focus on the total out-the-door price rather than just the sticker price.
What should you say when negotiating a new car price?
Start with: 'I've done my research and I'm ready to buy today. Based on what others are paying, I'd like to discuss the out-the-door price.' Always negotiate the total price, not the monthly payment.
Is it better to negotiate new car price by email or in person?
Email is often more effective. You can get quotes from multiple dealers simultaneously, compare them easily, and avoid high-pressure tactics. Many buyers get their best price via email before ever visiting the dealership.
What is the best day to negotiate a new car price?
End of month (especially the last 2-3 days), end of quarter (March, June, September, December), and weekdays (Monday-Thursday) are best. Salespeople are trying to hit quotas and have more time to negotiate.
Should I tell the dealer I'm paying cash?
Wait until you've negotiated the price. Dealers make money on financing, so mentioning cash upfront can actually reduce your negotiating leverage. Negotiate the price first, then discuss payment method.
How do I know if I'm getting a good deal on a new car?
Compare your out-the-door price to what others paid for the same vehicle. Use CarWhere to see real transaction prices, not just asking prices. A good deal is typically 5%+ below MSRP with minimal dealer fees.
What fees are negotiable on a new car?
Doc fees (try for under $500), dealer add-ons (window tint, paint protection, nitrogen), advertising fees, and market adjustments are all negotiable. Tax, title, and registration are set by the state and cannot be negotiated.
See What Others Are Actually Paying
Browse real transaction prices from buyers in your area. Know exactly what to offer before you negotiate.