New vehicle - MSRP?

[pasusan]

OK guys - just want to know what to expect with prices - we've never (I mean never) bought a brand new vehicle, so want to get ideas on how it works.

As we're getting older we are thinking of buying a new SUV - mainly for reliability and ease of someone else servicing it.

So - when I see the MSRP on a website - is that the real price? Can I expect them to go down 30% like I hear they do with RVs?

Help us figure out how it works before we go shopping. 🙂

[Mickeyfan0805]

pasusan wrote:
Thanks for the replies! I should have mentioned - we'll probably wait till next summer, just want to get started on the thinking...

I guess that's another question - is there a best time of year to buy - like buying this year's model just when the new models come out?

I appreciate all the thoughts and advice.:)

Good thoughts on here so far - certainly can't compare auto sales to RV mark-ups. It's a totally different world. Different vehicle styles tend to have different mark-ups, so some shopping around online can help give you a better sense of potential prices.

As for time of year, yes, there are some better times than others. There are holiday and seasonal sales that can be had, but the least costly option is often at the turn of the model year. Buying a 2022 model year, as the 2023 models are coming out, is often some of the best pricing you will find. You are limited to inventory available to the dealer (local or regional, typically), and your new car will be a model year older than some other new cars, but the price is among the lowest you can find. Whether that trade-off is worth it is up to you.

[RetiredRealtorR]

Seon wrote:
Spoke to a friend who's looking to buy a 4wd Denali pickup who said none available locally and the ones when searching on line are listed way above MSRP. When he asked why the mark-up he was told, "Because we can".
I'll stick with my 11 yr old vehicle with 65k miles, thank you.

The "because we can" attitude might work just fine if they're dealing strictly with cash buyers, but think about it -- no bank or CU is going to finance a new vehicle for substantially over MSRP. The buyer is instantly in the bucket (or, a negative equity situation). The lender doesn't want to chance having to repo a vehicle that has a balance owed of substantially greater than it's worth.

As for availability, my wife and I just returned from a 3100-mile trip through Alabama, Tennessee, Kentucky, Ohio, New York, Maryland, Virginia, and Georgia. I'd estimate that at least 75% of our travels were non-interstate. It's true that some car dealers looked a bit scant on inventory, however there were plenty of dealerships that appeared to have lots full of new vehicle inventory, so at this point I would really question any 'shortage' of vehicles (even if you had to fly to go pick it up -- an airline ticket is way cheaper than a crazy high markup on a new vehicle). This whole overcharging game will end -- sooner than later -- when these dealerships realize they're overloaded with inventory and their floor plan interest begins to eat them alive.

[Seon]

Spoke to a friend who's looking to buy a 4wd Denali pickup who said none available locally and the ones when searching on line are listed way above MSRP. When he asked why the mark-up he was told, "Because we can".
I'll stick with my 11 yr old vehicle with 65k miles, thank you.

[wanderingaimles]

Without getting too far into the weeds, are you a member of a group that could help?

Costco
Sams
or some insurances like USAA offer buyers assistance. If you dont want to wade into it alone, one of these may help at least to give you an idea of a starting point.

[pasusan]

Thanks for the replies! I should have mentioned - we'll probably wait till next summer, just want to get started on the thinking...

I guess that's another question - is there a best time of year to buy - like buying this year's model just when the new models come out?

I appreciate all the thoughts and advice.:)

[RetiredRealtorR]

No new vehicles have a 30% markup -- or anywhere even close to that. Do your research before making any offers. You want to be construed as a serious buyer, and making an offer of 30% off true MSRP certainly will not convey that message to the seller.

[ford_truck_guy]

pasusan wrote:
OK guys - just want to know what to expect with prices - we've never (I mean never) bought a brand new vehicle, so want to get ideas on how it works.

As we're getting older we are thinking of buying a new SUV - mainly for reliability and ease of someone else servicing it.

So - when I see the MSRP on a website - is that the real price? Can I expect them to go down 30% like I hear they do with RVs?

Help us figure out how it works before we go shopping. 🙂

RIGHT NOW.... with the Supply and Demand the way it is, I would NOT expect anything close to 30%... perhaps start there with an offer and settle for less....

**. OR ** Hold of for things to get back to "Normal" and go from there

[Mfan]

Like any vehicle sales, make an offer, they'll accept or counter. Be aware though, most vehicles are selling at Murphy or higher righ now