PriceProtect™
DriveShield™
GarageGuard™
Services
Insurance
Car Insurance
Compare Car Insurance with Jerry
Jerry’s Expert Advice
Car Insurance Estimates
Home & Renters Insurance
Renters Insurance
Repairs
Car Repair Estimates
Repair Estimates for Popular Services
Advice
Read Car Content
Browse Jerry Car Advice
Check Out Expert Car QnA
Learn About How We Create Content
Jerry Data & Research
How much below MSRP is a good deal?
How much below the MSRP can I offer to a dealership? I want to put in a good offer for my new car and get a great deal.
Rachel Juillerat · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
“Good for you for doing your research before buying a car!
It’s standard practice to offer 3-5% over your dealer’s true new car cost.
- MSRP (sticker price)
- Factory invoice price
- Dealer incentive (if you can find this)
You can calculate the true cost by using this formula:
Factory Invoice Price – ( 3-5% of MSRP + Dealer Incentive) = True New Car Cost
Take the true new car cost then add 3-5% of the value to it. This value is what you should offer your dealer.
For example, the sticker price (MSRP) of your dream car is $40,000. The factory invoice price is $38,000. You then need to find 3% of the MSRP, which is $1,200. When you ask the dealer, you learn their incentive is $1,000.
Time to plug the values into the formula: $38,000 - ($1,200 + $1,000) = $35,800.
This means the true new cost is $35,800. You then add 3% of the true new cost to find the total offer, which looks like this:
$35,800 + $1,074 = $36,874
Your total offer should be around $36,874. Paying too much more than this will benefit the dealer more than you.
Once you and the dealer settle on a price and you get the keys to your new ride, don’t forget that you need to have car insurance. Lenders will require that financed vehicles have full coverage, which can be pricey.
But proper coverage doesn’t have to drain the bank. Try using the
Jerry
app to help you compare quotes from the top providers and get the best deals delivered to your phone in minutes for free.”View full answer
- Gregory R.
WHY YOU CAN TRUST JERRY
Jerry partners with more than 50 insurance companies, but our content is independently researched, written, and fact-checked by our team of editors and agents. We aren’t paid for reviews or other content.
Join 4M+ members in lowering their car insurance
You Might Also Be Interested
Read Advice From Car Experts At Jerry
.jpg&w=64&q=75){kind=avatar}
What Others Are Asking
Browse More Content
Insurance for Your Car
Insurance in Your State
Easiest way to compare and buy car insurance
No long forms
No spam or unwanted phone calls
Quotes from top insurance companies