Question For AutoBrag: Dealer Discount Off MSRP
Question: How much should a new car dealer discount the msrp price
Queen of the Road: Hi there. Welcome to AutoBragBlog! It all depends on the brand of car. Every dealership is different and it depends on the demand of each car or if there is a surplus of cars.
What car are you looking for? If you’d like to check certain make and model average and maximum discount off MSRP and Cash & Finance Specials, go to www.AutoBrag.com.
November 8th, 2009 at 1:08 pm
Why does your pricing method work off of MSRP rather than Invoice price? My father taught me that I should always start from invoice price (which is easily retrieved via research sites like Edmunds).
November 9th, 2009 at 12:16 pm
The reason AutoBrag bases our pricing method off of the MSRP is because it reflects the discount off of the sticker price, thus allowing for more accurate “market pricing”. MSRP allows for an easier apples to apples comparison on pricing. Using invoice pricing as a bench mark is not the best method. A perfect example is when we heard dealerships say “oh i can sell it to you for invoice” when in reality the market price for the vehicle is significantly under the invoice price.
Let’s use an example…if a car with an MSRP of $25,000 with an invoice of $23,200 is being pitched by sales people as “you can buy at invoice” is it a good deal? From an invoice pricing standpoint it sure sounds good but what if the market price was 14% off MSRP or $21,500? The invoice price would be 7.2% off of MSRP. Which deal would you rather have?