Where Can You Still Find Real Savings on a New Car?
Let’s be honest—shopping for a new car these days can feel like running a marathon with your shoelaces tied together. Prices are up, inventory is tight, and those once-common discounts? They’re more elusive than ever. But don’t lose hope just yet. Even in a seller’s market, there are still ways to snag a solid deal if you know where to look and how to play your cards.
Why Are New Car Discounts So Rare Right Now?
It’s not your imagination—dealerships aren’t handing out incentives like they used to. The pandemic set off a domino effect: supply chain hiccups, chip shortages, and a backlog of orders that’s still being sorted out. According to Kelley Blue Book, the average new car price in the US hit a record high in 2023, with discounts shrinking to an average of just 2-3% off MSRP. Compare that to the pre-pandemic era, when 8-10% off sticker was common, and it’s easy to see why buyers are frustrated.
But here’s the silver lining: not every model is in hot demand. Some vehicles—especially sedans, hybrids, and less flashy options—are still seeing meaningful markdowns. Consumer Reports and Edmunds have both highlighted that certain brands and models are quietly offering thousands off, even if you have to dig a little deeper to find them.
Which Cars Are Actually Getting Discounted?
If you’re flexible about what you drive, you’re in luck. The biggest discounts right now tend to show up on vehicles that aren’t flying off the lot. Think midsize sedans, compact SUVs, and last year’s models that need to make way for new inventory. For example, recent data from J.D. Power shows that some 2023 models are being discounted by as much as $4,000 to $6,000 as dealerships try to clear space.
Hybrids and plug-in hybrids are another sweet spot. While electric vehicles (EVs) are still commanding premium prices, hybrids like the Toyota Camry Hybrid or Honda Accord Hybrid have seen incentives creep up, especially as gas prices fluctuate. And don’t overlook brands like Hyundai or Kia, which are known for aggressive pricing and generous rebates on certain trims.
How Can You Spot a Genuine Deal Versus a Gimmick?
It’s easy to get dazzled by big numbers, but not all discounts are created equal. Some dealerships advertise “cash back” or “dealer incentives” that only apply if you finance through their preferred lender—often at a higher interest rate. Others might offer a low monthly payment but stretch the loan term to 84 months, costing you more in the long run.
Here’s a smarter approach: focus on the out-the-door price, not just the monthly payment. Ask for a breakdown of all fees, taxes, and add-ons. Use online tools like TrueCar or Edmunds Price Checker to compare what others are paying in your area. And don’t be afraid to walk away if the numbers don’t add up—sometimes, the best leverage you have is your willingness to say no.
Are There Times of Year When Deals Are Better?
Timing still matters, even in a tight market. The end of the month, quarter, or model year is when dealerships are most motivated to hit sales targets. According to a 2023 Cox Automotive report, buyers who shopped in late December saved an average of 5% more than those who bought in midsummer. Holiday weekends—think Memorial Day, Labor Day, and Black Friday—also tend to bring out special incentives.
If you’re not in a rush, keep an eye on manufacturer promotions and local dealer events. Signing up for email alerts from brands you’re interested in can give you a heads-up when new incentives drop.
What’s the Smartest Way to Negotiate in This Market?
Negotiating isn’t dead—it just looks a little different now. With less wiggle room on price, focus on the total package. Can you get free maintenance, an extended warranty, or discounted accessories thrown in? Are there loyalty or conquest rebates you qualify for? Sometimes, the extras are where the real value hides.
Another tip: get pre-approved for financing from your own bank or credit union before you step foot in the dealership. This gives you a solid baseline and keeps you from getting boxed into a high-interest loan. And remember, being polite but firm goes a long way. Salespeople are more likely to work with you if you’re respectful and informed.
What If You Can’t Find the Car You Want?
Patience is your friend. If your dream car isn’t available or the price is just too high, consider expanding your search radius. Many buyers are finding better deals by looking at dealerships in neighboring cities or even out of state. Some are even turning to factory order programs, where you can lock in a price and wait a few months for delivery.
Alternatively, think about certified pre-owned (CPO) vehicles. These often come with extended warranties and have already taken the initial depreciation hit, making them a smart middle ground between new and used.
The Big Takeaway
Scoring a deal on a new car right now isn’t about chasing perfection—it’s about making smarter, more strategic moves. Start with one change this week—maybe it’s broadening your search, getting pre-approved, or simply timing your purchase better—and you’ll likely spot the difference by month’s end. The market may be tough, but with a little creativity and persistence, you can still drive away happy.
