What is the average amount a dealer will lower the price on a new vehicle?

Asked by May 24, 2014 at 08:29 PM about the 2014 Chevrolet Tahoe LTZ 4WD

Question type: Shopping & Pricing

16 Answers

32,375

Some will sell for $100.00 over dealer invoice plus you get the incentives.

1 out of 1 people think this is helpful.
15,935

some will actually sell for less than dealer invoice because dealer invoice is actually more than they end up paying. They get all kinds of dealer incentive payments that come from floor plan rebates,volume rebates,etc Do lots of shopping before you buy. There is a dealership about an hour from me that draws buyers from a 500 + mile radius because he will beat anybody else's price, and after you buy you can go to any franchise dealer for warranty..

4 out of 4 people think this is helpful.
15,935

Have you seen the TV commercial where they imply that the dealer sells to you for exactly what he pays ( buy at dealer invoice price). If he buys it for a buck and sells it for a buck - then how does he pay his for the overhead of running the dealership and where would the salesman's commission come from if there is no profit?

2 out of 2 people think this is helpful.
32,375

Chassy has a food point. I used to sell cars in the Boston area. I worked for a Ford dealer that would sell for LESS then cost. They made there money on the kick back from the finance companys, dealer add ons and factory intensities. The salesman got $100.00 from Ford. Also, they take your trade in at a lower price then they can sell it for and make money there. The salesman is treated like a POS by management. I started in the business in 1980 and was making the same money in 2004. I went back to driving trucks and made MORE money. Used cars are where the money is.

2 out of 2 people think this is helpful.
15,935

HELLO Mark, still no go with Email but still having fun here. What's that song ..." we'll really have a good time then dad,we'll really have a good time then". I'll get together with him and he'll show his old man how to Email. My daughter sent me an Email and I sent her back a post card, LOL. See I learned something new, letters instead of words.Imagine that ; you worked for a Ford dealer . I worked in the controllers office at (get ready) Ford. I started in 1968. You'd laugh at the arguements a buddy and I have over the b.s. line he sticks with (even though he knows that I know) over what he makes on a sale [he owns a dealership] Car sales,car repair,secret warranties were all a part of the voodoo of the automotive industry going back to the 1940's according to some of the oldsters that were around in 68 when I started as a young newbie.You'd be surprised how many good faith cheques I've pulled right out of the sale's manager's hand when he started in on his voodoo mumbo jumbo and how many friends and relatives I have taught the art of car buying to. Be a smart consumer and you can beat them at their game(s).

2 out of 2 people think this is helpful.
15,935

Here's a basis they just HATE. Work out a good deal, show 'em the cash and then tell them you'd like to trade. They s--t their pants over that one - on one hand they have a sale ,they are staring at your cash; and on the other they have to tell you what you're really going to get on your trade. Gives them nightmares.

2 out of 2 people think this is helpful.
15,935

Works best with actual cash but you can pull it off as long as you have made a pre-authorized loan arrangement with your bank so that you know you have the money .

2 out of 2 people think this is helpful.
32,375

Hey Chassy, Yeah Auto Voo Doo is right! Unbelievable B.S. go's on in the manager's office. One more hint, for a really good deal go to the dealership one hour before they close on the last day of the month. They are looking at sales numbers. But here in the Philippines it's...... strange. I have been to a couple of dealerships and been ignored or treated like I'm a bother. My wife once had to go to the office to find a salesman! Then this kid had no idea what the prices were or the years of the car we were interested in. I went out to buy my brother in law a motorcycle. The first place didn't want to talk as it was close to closing time. The second place stayed open and got the sale. I've left messages on at least 5 SUV`s and no call backs! I can go on.

1 out of 1 people think this is helpful.
15,935

warmer climates seem to have different work patterns, ever tried to buy anything in Mexico at siesta time? catch up again I'm sure; and I'll pass on that end of month tip. How about a pocket full of cash on the last day of the year? might get 'em salivating.

2 out of 2 people think this is helpful.
32,375

The beggars are more aggressive then the sales people here. They're not violent, just stand with there hand open. I have 3 little kids that come by 2~3 times a week. We feed them. No money just food. Anyway, I'm looking for a Kia Carnes. It is a 9 passengers mini van with a turbo diesel. I saw.one in Tagularn but haven't heard from the dealer. Oh well its funny coz an American here is presumed rich and can buy anything. So for now I'm going to be driving the Kia Sportage. I think I'll have some more things done around the house.

1 out of 1 people think this is helpful.
765

There is no average... it really depends on the dealer mindset... if they are a volume dealer, they will show you the invoice and sell for what appears to be 150 less than the invoice price... the reason being that they have finance/marketing/holdback allowances in those invoices that you don't see and they get back when they report the car sold - so there are several thousands of dollars burried in the deal that you do not know of even if you see the manufacturers invoice... also it depends on any allowances that are out there and how popular the car is - like when the Camaro relaunched its convertible in 2011, they were actually getting over sticker price... so there is no set formula... basically you should do your research and find out what the numbers are for the car you are looking at and then figure that there is anywhere between 6 - 10% of the 'hidden money' in the deal depending on manufacturer... at that point in time, you'll be able to ball park what their real number is and you'll have a better idea - I can tell you when i bought my 2012 CTS Coupe, I bought it for 1500 below invoice because of those hidden items and the dealership knows I knew about them since I worked for a leasing company... to be honest, if you start mentioning things like Holdback and Finance Allowance, they will hear you using their terminology and you'll probably be able to bluff then into a better deal...

2 out of 2 people think this is helpful.
495

I've been professionally negotiating new vehicle's for almost 21 years and over 7500 times. The true answer is the market decides how much a delaer will charge for a vehicle, no matter what you've read elsewhere. It's like asking "on average, what will the stick market close at today based on taking an average of the last 1000 days?" You could take an average, but it would be a meaningless average, since it gives no indication of what market conditions are today (when you are in the market). So someone above giving examples about what they've seen are for a specific vehicle in a specific market at a specific point in time, all being parameters which change constantly. So because I can't ever commit to what I'll get as a price when I get competing quotes for my customers, I commit instead to getting the lowest price in their market area for peace of mind. If you have any questions, I can be reached at 240-403-1069. Mike Rabkin Fromcartofinish.com

1 out of 1 people think this is helpful.
15,935

absolutely -there is no average and that is what has already been said. Negotiate your price and don't fall for sale's tricks like "at dealer invoice". Bring some of your own knowledge to the table and shop around.

2 out of 2 people think this is helpful.
15,935

Mike- everyone has to make a living -so no bones to pick with you making a living by being a middle man. But I would assume you get paid for your service. If the buyer pays you then he adds that to his out of pocket costs. If the Dealer pays you, then there is some money he could save by negotiating a lower price with the dealer who won't be paying you.

2 out of 2 people think this is helpful.
495

Absolutely. I charge a flat fee to the customer, not the dealer (and not commission based). My guarantee requires us to get the lowest price in the area we shop....even after factoring in our fee. This takes the risk out of using our service, because we have to justify our fee every time. We offer that for peace of mind, and work for the customer, not the dealer. From the dealer's perspective, it's a free referral, which is one of the main reasons they're willing to quote with us nationwide.

2 out of 2 people think this is helpful.
15,935

Mike- thanks for a straight forward and honest answer. Whether you could negotiate a better deal than I can for myself would be open to a one on one contest ; but, I'll bet you do a good service for the average person that doesn't have a clue about dealer incentives and all the other voodoo of the automotive industry, like delivery charges (I could tell you how that works ),dealer prep,etc.

2 out of 2 people think this is helpful.

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