What is MSRP?
Unbelievably, 1 out of 10 car shoppers don't know you can negotiate below MSRP, and a much larger percentage have no idea how much lower you can typically negotiate.
You'll find the MSRP, also called the "sticker price", on the window of every new vehicle as required by law. The MSRP sticker will include all the standard features of the vehicle, plus all the factory-installed options along with their price.
The sticker also includes the fuel economy ratings and destination charge. Note that the MSRP does not include taxes, license, or registration fees.
Dealers expect you to pay sticker price, and sometimes even above that if the vehicle just hit showrooms and demand is higher than supply. In most cases, waiting a few months and allowing production to catch up to demand will save you thousands of dollars.
But in most other cases, you should be able to negotiate between $1,500 and $4,500 off the MSRP price.
3 Steps Every Car Buyer Needs to Take to Save Maximum MoneyThe key to getting the best deal is to gather price or lease bids from as many local dealers as possible. Then shop that best price around until no one can beat it. Here are the steps:
Step 1 Get Prices From My Trusted NetworkSelect the vehicle you're interested in to see if there are local dealers in my network who will provide you with their best upfront price. You will get direct access to an internet sales manager who you can further negotiate with online (no need to visit dealership).
Step 2 Get Prices From TrueCar / CarsDirectTrueCar, and CarsDirect are my top 2 online price quote recommendations. These services show you pre-negotiated prices from dealers closest to you - and the deals are usually pretty decent. But remember, you can still negotiate further.
Step 3 Complete my ChecklistFollow this up with my checklist to make sure you squeeze out every last bit of savings.
- Gregg Fidan
Each week, I'll keep you up-to-date on the latest car deals and news that might affect your purchase. This includes...
- Best Rebates, Incentives, and Lease Deals
- Latest Car Buying Scams and Tricks
- The Best & Worst Time to Buy a Car
- Which Cars You Should Avoid