How Much Can You Negotiate on a New Car?
Skip the guesswork. We analyzed thousands of verified buyer transactions to show you what discounts are actually achievable—not what dealers want you to believe.
The short answer
Most buyers negotiate 3-8% off MSRP on mainstream vehicles. But the range varies from paying over sticker (high-demand models) to 15%+ below MSRP (slow sellers). The specific vehicle matters far more than negotiation tactics.
Why MSRP Is a Poor Benchmark
MSRP stands for Manufacturer's Suggested Retail Price—emphasis on "suggested." It's a reference number, not a market price. Here's what MSRP doesn't account for:
- •Dealer markup: Popular vehicles often sell above MSRP due to demand
- •Regional variation: The same car can be $2,000 cheaper in a different state
- •Manufacturer incentives: Rebates and financing deals change monthly
- •Dealer fees: Doc fees, prep fees, and add-ons inflate the final price
This is why CarWhere focuses on % off MSRP and selling price—the actual dealer discount buyers negotiated. Seeing real discount percentages from verified deals tells you what's achievable for your specific vehicle.
Realistic Negotiation Ranges by Vehicle Type
Based on verified CarWhere transaction data, here's what buyers are actually achieving across different vehicle categories:
| Vehicle Category | Typical Discount Range | Notes |
|---|---|---|
| High-demand trucks & SUVs | 0-3% off MSRP | Popular models like Toyota trucks, Broncos often sell at or near sticker |
| Mainstream sedans | 5-10% off MSRP | Honda Accord, Toyota Camry, Mazda3 typically see moderate discounts |
| Luxury vehicles | 5-12% off MSRP | Varies widely by brand; German luxury often more negotiable than Japanese |
| Slow-selling inventory | 10-18% off MSRP | Outgoing model years, unpopular trims, or overstocked dealers |
| Electric vehicles | 2-8% off MSRP | Demand varies significantly by model; some EVs still have waitlists |
| Full-size trucks | 8-15% off MSRP | Higher MSRP means larger absolute discounts; incentives often strong |
Note: These ranges reflect current market conditions and vary by specific model, trim, location, and time of year. Always check recent deals for your specific vehicle.
Dealer Discount vs. Manufacturer Incentives
Your total discount typically comes from two sources, and yes, they usually stack:
Dealer Discount
The reduction from MSRP that the dealer offers. This is where negotiation happens. Dealers have margin built into invoice price and often receive manufacturer holdbacks.
Manufacturer Incentives
Cash rebates, financing offers (0% APR), loyalty bonuses, or lease deals from the manufacturer. These are set programs—not negotiable, but available to qualifying buyers.
A strong deal combines both. For example: $2,000 dealer discount + $1,500 manufacturer rebate + 1.9% financing = significantly better than just negotiating the sticker price.
Why Location Matters
CarWhere data consistently shows significant price variation by region. Factors include:
- •Dealer competition: More dealers nearby means more leverage for buyers
- •Local demand: A truck sells differently in Texas vs. New York City
- •Inventory levels: Overstocked dealers discount more aggressively
- •Market conditions: Supply constraints hit some regions harder than others
This is why checking actual deals in your state provides a more accurate target than national averages.
What Actually Constitutes a "Good Deal"
Forget arbitrary targets like "always get 10% off." A good deal is defined by context:
A good deal means:
Paying at or below what other verified buyers paid for the same vehicle, in a similar timeframe and region.
If the average buyer pays 5% below MSRP for a Honda CR-V in California, then 6% off is a good deal—even if someone online claims they got 12% off a different vehicle in a different market. Context matters.
Negotiation Myths vs. Reality
You should always be able to get at least 10% off MSRP
Depends entirely on the vehicle. High-demand models regularly sell at MSRP or above. The vehicle's market position matters more than negotiation skill.
Walking away always gets you a better deal
Works sometimes, but dealers know when a car will sell regardless. On popular models, walking away often means someone else buys it.
Invoice price is the dealer's real cost
Dealers receive holdbacks, incentives, and volume bonuses that reduce their effective cost below invoice. Invoice is a negotiation reference point, not true cost.
End of month is always the best time to buy
Can help, but the effect is smaller than advertised—typically 1-2% at most. A slow-selling vehicle in mid-month often beats a hot model on the 31st.
Frequently Asked Questions
What is a realistic discount to expect when negotiating a new car?
Based on verified CarWhere data, most buyers negotiate 3-8% off MSRP on mainstream vehicles. High-demand models may sell at MSRP or above, while slow-selling inventory can see discounts of 10-15% or more. The realistic range depends heavily on the specific make, model, and current market conditions.
Is MSRP the starting point for negotiation?
MSRP (Manufacturer's Suggested Retail Price) is a reference point, not a firm starting price. Many dealers add markup above MSRP on popular models, while others discount below MSRP on slower-moving inventory. The true market price is what buyers actually pay—which is why verified transaction data matters more than sticker price.
Do dealer discounts and manufacturer incentives stack?
Yes, in most cases. Manufacturer incentives (rebates, financing deals, loyalty bonuses) are separate from dealer discounts on markup. However, some incentives require specific financing or have other conditions. A good deal often combines both a dealer discount and available manufacturer incentives.
Does location affect how much I can negotiate?
Significantly. Dealer competition, regional demand, and local inventory levels all impact pricing. Buyers in areas with multiple competing dealerships typically see better discounts than those in regions with limited options. CarWhere data shows price variations of $1,000-3,000+ for the same vehicle across different states.
When is the best time to negotiate a new car?
End of month, end of quarter, and end of year often yield better deals as dealers push to meet sales targets. Model year changeover periods (typically late summer/fall) can also bring discounts on outgoing models. However, these timing effects are smaller than many believe—usually 1-2% difference at most.
What discount percentage should I aim for?
Your target should be based on what other buyers are actually achieving for your specific vehicle, not an arbitrary number. CarWhere shows the % off MSRP that verified buyers negotiated, so you can see realistic discount ranges for your make and model before you start negotiating.
The Bottom Line
How much you can negotiate depends primarily on what you're buying, not how you negotiate. The vehicle's demand, your location, current incentives, and dealer inventory levels set the realistic range. Your job is to know that range before you walk in.
The best negotiation tactic isn't a script or a walk-away bluff—it's knowing exactly what other buyers paid for the same car. That's what CarWhere provides.
See What Discounts Buyers Are Getting
Browse verified % off MSRP and selling prices for any make and model. Know your target before you negotiate.
Browse Price Data