How Much Will a Dealership Come Down on a Car?

How much will a dealership come down on the price of a car? Comparison of discounts vary based upon MSRP, vehicle brand and invoice pricing. It’s not that simple across the board. All Toyota Camry SE models are the same but the discounts offered to that brand vary when compared to another brand, make and model. There is no broad stroke general rule of discounting. Pricing vehicles by the dealership has so many variables.

Supply and demand impacts pricing at a car dealership.

The first is simple: supply and demand. If there is a trending vehicle with high consumer demand, you won’t see any budge on the price. If, however, it’s the end of a model year and the new release is about to roll out, you may cash in on some dealer-motivated pricing.

Car dealerships plug into platforms to determine pricing models.

Price decreases may also rely upon manufacturer discounts and dealer programs, equipment, models and even simply the vehicle color. In today’s world, pricing new cars is actually a science. Dealerships don’t leave it up to a person to change prices, but instead have access to platforms that help them do just that. These platforms take individual state car sale information and distribute it. This allows real-time ability to “price” cars to the current market and availability. Properly pricing vehicles is the only way that dealers can get a car in front of a consumer’s eyes when doing an online search. If the dealer’s pricing is out of whack, it will be buried in the search results, pages down, as out-of-market value.

New car price markup is minimal.

Some new cars have literally just a few hundred dollars in markup, not thousands of dollars. That means that dealers often have very little room to wiggle on pricing. If they decrease the price, their profit could be nearly zero, or even worse. With used vehicles, there is a larger opportunity for price negotiation. Since no two used vehicles are the same, many factors such as condition, mileage, vehicle type, wheels and tires and beyond are consideration points.

COVID impacted the pricing of automobiles.

When COVID began, car sales took a temporary hit but then sky rocketed shortly thereafter. Pricing held strong because supply and demand became a problem. As a result of factories and suppliers being shut down or slowed, inventory was depleted. Now, however, factories are open and cars are once again being distributed. This indicates that pricing should follow suit so that consumers should see a difference.

Used car vehicle values have increased.

With car pricing being elevated, this has benefitted used car values. In fact, used cars have never been more valuable.

With CarSnoop the new car price may not be all that different, but by allowing dealers to fight over your trade, you’ll be in control of who gets your business and which offer best suits your needs. Plus, it will be fun to watch. CarSnoop provides a stress-free car buying experience because you eliminate the entire dealership experience. Instead, you stay home and enjoy the process from the comfort of your sofa.