Can I negotiate a new car price?

Yes, you can absolutely negotiate the price of a new car, as dealerships expect it, but success depends on preparation, research (invoice price, incentives, market value), knowing your budget, and focusing on the total out-the-door price, not just monthly payments. Timing (end of month/year) and shopping multiple dealers can help, but always be polite, firm, and ready to walk away to get the best deal.

What is a reasonable negotiation on a new car?

You can typically negotiate a new car by starting 3-10% below the MSRP, aiming for a few percentage points over the dealer's invoice cost, but the actual discount depends heavily on the car's popularity (high demand means less wiggle room) and how long it's been on the lot. A good starting point is around 3-5% below the True Market Value (TMV) or average transaction price for that model in your area, using resources like Edmunds or Consumer Reports, and be prepared to haggle back and forth. 

What is the 8% rule when buying a car?

The 20/3/8 rule is a guideline that suggests you put 20% down on a car and repay the loan over three years. Applying the rule correctly will also require your monthly payment and car expenses be 8% or less of your income.

What not to say to a car salesman?

To get the best deal, avoid telling a car salesman you love the car, your exact monthly budget, your job/income (unless for a discount), or that you must have that specific model/color, as this gives away leverage; instead, focus on the out-the-door price, act open to other options, and maintain an emotionless stance to encourage them to work harder for your business. 

Do people still negotiate new car prices?

Yes, people still negotiate new car prices, but the ease of negotiation varies greatly depending on current market conditions, with high-demand models offering less wiggle room and slow-moving inventory creating more opportunities for discounts, though no-haggle options are also available for those who prefer fixed pricing. Researching market value (like True Market Value or Edmunds' suggested price), knowing when to shop (end of month/quarter), and being prepared to walk away remain key strategies to secure a good deal, even when haggling is difficult.
 

Saved THOUSANDS. How to Negotiate NEW Car Deals in 2025.

What is the 70 30 rule in negotiation?

Follow the 70/30 Rule – listen 70 percent of the time, and talk only 30 percent of the time. Encourage the other negotiator to talk by asking lots of open-ended questions – questions that can't be answered with a simple "yes" or "no."

How much do dealers usually go down on new cars?

Unfortunately, it isn't an exact science because it changes from car to car and dealer to dealer. However, you can use the guideline of 2 or 3% on less expensive brands, and 5 to 10% on luxury brands as a rule of thumb.

What is the red flag rule for car dealers?

The Red Flags Rule (the Rule), enforced by the Federal Trade Commission (FTC), requires automobile dealers to develop and implement a written identity theft prevention program designed to identify, detect, and respond to warning signs—known as “red flags”—that indicate that a customer or potential customer could be ...

What is the 20/4-10 rule for buying a car?

The 20/4/10 rule is a car buying guideline suggesting you make a 20% down payment, finance the car for 4 years (48 months) or less, and keep your total monthly transportation costs (payment, insurance, gas, maintenance) at or below 10% of your gross monthly income, helping prevent debt and staying within budget. It's a framework to avoid being "upside down" on a loan and overspending on a vehicle.
 

How to not get screwed by a car dealership?

Make sure that the Total Cash Price on the written contract matches the price that you were told. If the prices are different, you may be the victim of fraud. If the dealership refuses to honor the representations made to you by the salesperson, refuse to sign the contract and walk away from the dealership.

What should a $30,000 car payment be?

For a $30,000 car, your monthly payment could range from around $500 to over $700, depending heavily on your down payment, loan term (e.g., 60 vs. 48 months), and interest rate (APR), with longer terms and higher rates increasing payments, while a larger down payment (like 20%) lowers them significantly. For example, with a $3k down payment, 5.8% rate, and 60 months, it's about $520; with a good rate on a 4-year loan, it could be $733. 

What is a red flag when buying a car?

Use your best judgment; if a car looks or feels wrong, don't buy it. Look out for excessive rust, a worn tailpipe, or illuminated dash lights. During your test drive, pay special attention to how the car handles and sounds. If something's off, ask the seller and double-check the title and history report.

What is the 6000 car rule?

The Section 179 tax deduction gives vehicles under 6,000 pounds that are used for business purposes a deduction cap of $12,400 and $30,500 for vehicles over 6,000 but under 14,000 pounds.

How much commission does a car salesman make on a $30,000 car?

It is just a way for the dealer to ensure he's making money by reducing the sales commission. If the invoice cost of a vehicle, for example, is $30,000, then the normal 5-percent profit would be $1,500 and the 25-percent sales commission on the sale would be $375.

What's the best day of the week to buy a car?

The best days to buy a car are typically Mondays, Tuesdays, or Wednesdays, especially early in the day, because showrooms are less busy, giving you more attention and negotiation time, with Mondays often cited as the top choice for relaxed shopping. For the absolute best deal, combine a quiet weekday with the end of the month, quarter, or year (like late December), when salespeople are eager to hit quotas and clear inventory. 

What are 5 questions you should ask the dealer before you buy a car?

Just the List for the TLDR Crowd:

• When may I test drive the car, preferably by myself?
• May I have my mechanic inspect the car?
• May I see a CURRENT car history report, such as Carfax? ...
• Has a qualified mechanic inspected the car, and may I see that report?

What is Dave Ramsey's rule on car buying?

Dave Ramsey's core car buying rule is to pay cash for a reliable used car, avoiding car loans entirely because cars lose value, and ensuring the total value of all your vehicles doesn't exceed half your annual income, emphasizing that things that depreciate shouldn't be financed. He advocates buying what you can afford outright to prevent debt, suggesting you save up and buy a modest, dependable vehicle instead of a new car that rapidly loses value.
 

What not to tell the dealer when buying a car?

"I Don't Know What My Credit Score Is"

No matter if you know your score or not, buyers with low credit scores will be offered higher interest loan rates than buyers with good credit. If you rely on the dealer to tell you what you qualify for, you may get a higher interest rate than your credit score merits.

How much would a $70,000 car payment be?

A $70,000 car payment varies significantly but expect roughly $900 to $1,300+ monthly for a loan, depending on term (60-72 months common) and interest rate (e.g., 6-9% APR), or $700-$1,200+ for a lease, factoring in down payments, miles, and money factor, with total auto costs (payment, gas, insurance) potentially reaching $1,000-$1,500+ monthly for a comfortable budget. 

How to win against a car salesman?

Car salespeople use various tactics to pressure buyers into purchasing vehicles they may not afford. Staying focused on the total cost of the car, interest rate and fees can help you avoid making a purchase you'll regret. Don't be afraid to walk away if the purchase doesn't feel right.

What is illegal for a car dealership to do?

In California, like many other states, it's illegal for dealerships to commit fraud or make material misrepresentations to sell a car. This includes advertising a vehicle as “clean” or having no accidents when, in fact, it has sustained significant damage. Unfortunately, this happens more often than you'd think.

What is a red flag in a car dealership used for?

Used car red flag #1: A complicated history

Because a car's title can be forged, verify it with the appropriate state DMV before you finalize a purchase, especially if the vehicle was recently brought to your state and titled, or if the car's vehicle identification number (VIN) appears to have been tampered with.

What is the cheapest month to buy a new car?

The cheapest months to buy a new car are typically October, November, and especially December, due to year-end model clearances and salespeople/dealerships racing to meet annual quotas, with great deals also found at the end of the first quarter (March/June) and during holiday weekends like Memorial Day. Waiting until the final days of the year offers the most significant discounts as dealers clear out outgoing model years (e.g., 2025s to make way for 2026s). 

How much profit does a dealer make off a new car?

Car dealerships make money in every capacity.

Industry estimates put dealership per-car profits at just over $2,000 per vehicle sold, even though dealers tend to lose about $200 per car over their cost to purchase it.

What is a polite way to ask for a lower price?

Buyers: Polite Ways to Ask

“Any discount on this?” “I want to buy this [product/service], but it's too expensive for my budget; can you adjust the price?” “Can you do a better price on this?”