The Truth about Discount Car Prices for New Automobiles

January 27, 2012

Getting discount car prices is a passion for some car buyers. Some people enjoy shopping and haggling for the best deal, feeling satisfied that they are paying bottom dollar for their dream car. Some people do not have the time to go from showroom to showroom, spending days looking for the right model and talking to salespeople. Others dislike the negotiation process, sometimes intensely, because they do not enjoy haggling or do not get the feeling that they were able to negotiate properly for the best deal. For these people, getting the best discount car price is matter of finding a dealer or use an Internet vehicle website which makes the car-buying process a matter of buying the vehicle or not.

The Car Sticker Price

The manufacturers suggested retail price (MSRP) is found on the sticker of the car--also called a Monroney sticker--which lists certain information about the vehicle. On this sticker is the listing of the base model, standard equipment and the price of the car. Also listed are the additional equipment ordered and installed on the car from the factory. This information is displayed to inform the buyer of the total price of the vehicle as configured. Authoritative sources such as the Kelley Blue Book or Edmunds, lists al the makes and models of vehicles with both the retail and wholes prices.

Dealer's Invoice

The dealer's invoice typically is the actual cost of the vehicle to the dealer from the manufacturer. This is a similar listing as the Monroney sticker, except that this is the invoice from which the dealer pays the manufacturer for the vehicle. This represents the true cost of the car to the dealer. Even if the dealer's invoice has a little bit of built in profit in the form of discounts on options and rebates a dealer gets for selling that particular vehicle.

Discount Car Buying

There are a number of ways to purchase a car at close to dealer invoice price, which is as great a discount as you can get. The only cheaper way that a car can be purchased is at the wholesale price; however only dealers are permitted to attend events which sell vehicles at wholesale prices. Some dealers such as Saturn offer no-haggle pricing, which may represent a discount from the retail price with no negotiations.

The price that is listed along with the disclosure of additional charges is the price that is paid for the vehicle. As an alternative, direct purchasing from the Internet is a new way to buy a car. Automobile websites offer the car buyer a way to enter the make and model of the car, along with the desired options and submit it for pricing. A dealer or a representative will arrange all the paperwork, financing, transfer, licensing, etc and arrange for the buyer to pick up the car. The a buyer can also work with a dealer, within the network of the website to assist with the sale. For buyers who dislike the sale process, the purchase of a car through the Internet is the most ideal method.

Finding a list of all cars in an area that are the make and model you want is made easy with's pricing feature. Simply enter in the make and model you are considering and the distance you wish to travel in your search, and will provide a listing of all the cars in the area and their prices. This makes car hunting quick and painless.

Related Questions and Answers

What is the Average Dealer Markup on New Cars?

The average dealer markup on new cars will vary depending on the type of vehicle being sold, and the location of the vehicle. On average, dealers mark a vehicle up 2-5%. If the car is in high demand, expect a higher markup. Dealers also make money on the numerous fees and delivery charges they attach to the vehicle. Financing also provides a revenue stream for dealerships. When negotiating a price, it is a good idea to check out KBB and get an invoice price on the vehicle. Knowing what the dealer paid for the car can give you a good starting point to negotiate a final price.

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