New Car Research
 STORY HIGHLIGHTS
  • Car shoppers are paying less for the vehicles they buy
  • In May, consumers paid 77.28% of the vehicle's MSRP
  • CNW Research thinks the decline in vehicle transaction prices is from incentives, dealers using their own money to close the deal and needing more cash flow

Vehicle Transaction Price Falls Again

By Liz Opsitnik
Monday, Jun 22 2009 14:38

The difference between the price the manufacturer thinks you should pay for a car and the price consumers are actually paying for vehicles is getting bigger.

This is good news for car shoppers and bad news for dealers. In May, transaction prices were 77.28% of the average MSRP, according to CNW Research. During the same month in 2008, vehicle transaction prices were 80.17% of the MSRP.

To give you an idea of how much it has dropped, in 2006, vehicle buyers were paying 83 to 84% of the MSRP.

CNW Research attributes the falling transaction prices to car buying incentives and dealers adding more of their own money to close deals. Slow car sales are forcing dealers to sell cars just for the cash flow, CNW reports.

With price negotiating and car buying incentives, shoppers should find some really good deals on the vehicle they want right now. The dealer’s loss is the buyer’s gain.

Acura TSX

In May, dealers took a loss as car shoppers paid only 77.28% of the MSRP.

 


Confused or unsure about some of the car loan terms used in the article? Click here for our Auto Loan Glossary.



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Comment By: dan on Mon, Jun 22 2009 at 4:05 PM
so i can tell the dealer i only want to pay 77% of their asking price? you know if you go in there telling them this info, they are gonna play dumb and try to screw u out of money.

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