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