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Can you negotiate new car prices in 2023? Our CarEdge Auto Experts help hundreds of car buyers every week, and they gather real-time insights of the market along the way. The market is changing, and both new and used cars are more negotiable than at any time in 2022. Which car brands are most negotiable right now? We spoke to CarEdge’s Justise Lasley and Mario Rodriquez to find out. The consensus was clear: these are the five car brands that you can negotiate right now.
You Have MORE Negotiating Power With These 5 Brands Today
Car buying has always been about supply and demand. However these days, automakers are admitting to intentionally holding supply down to keep prices higher. Still, some brands are negotiable. As car prices fall, gone are the days of being forced to accept dealer markups. You CAN buy a new car at or below MSRP.
Would a car buying coach make this whole process easier for you? What about major savings on financing, insurance, maintenance and more? Consider joining CarEdge+, the membership that pays for itself!
Now onto the 5 brands you can negotiate today…
Jeep
CarEdge’s Mario Rodriguez says that the Stellantis family of brands (Chryler, Jeep, Dodge and Ram) is negotiable right now. A quick look at CarEdge Car Search shows that prices for both new and used Jeeps are softening, with many dealers slashing prices. We’re seeing more Jeeps sit on the lot for longer, such as this discounted Cherokee in the DC-area.
Jeep Incentives:
Lease a Jeep Compass for $347/month with $3,799 due at signing
The Cherokee qualifies for a $1,750 cash allowance
The much-loved Wrangler 4xe plug-in hybrid can be leased for just $519/month with $4,899 due at signing
Purchase a Jeep Gladiator with 0% APR for 72 months
After 18 months of elevated prices, some trucks are finally more negotiable. The Ram 1500 is more negotiable in 2023 due to softening demand and slightly better inventory. Finally, Ram trucks are coming down in price. This 2020 Ram 1500 Laramie is one of many examples. This East Coast dealer dropped the price by 12% recently. Depending on how long the truck has been on the lot, in many cases you can start negotiating truck prices.
Ram Incentives:
Purchase a Ram 1500 or 1500 Classic with 0% APR for 72 months
How can you get a low APR for your new set of wheels? Finance with CarEdge! We work with trusted credit unions offering low rates and great customer service. Learn more about our hassle-free process.
Chrysler
CarEdge’s Justise Lasley has been seeing more Chrysler deals over the past month. The Pacifica and Pacifica Hybrid were previously in such high demand that finding one was next to impossible. Now, demand has weakened, and Chrysler is even offering manufacturer incentives. On the used van front, the Pacifica is finally seeing softening prices. This 2021 Pacifica Limited 4WD has had a $4,000 price drop recently.
Chrysler Incentives:
$1,000 in Stellantis Loyalty Retail Bonus Cash towards a Pacifica Touring L
$750 cash allowance on a 2022 Pacifica Hybrid Touring L
Lexus is one of the brands that releases monthly inventory numbers. In September, Lexus had a 26 day supply overall, with a higher inventory among Lexus cars than SUVs/crossovers. The overall luxury segment has seen the quickest depreciation over the past month. This is especially true for used Lexus models, such as this 2020 NX. See the latest used car price trends here.
CarEdge’s Mario Rodriguez noted that the Lexus RX350 is the most negotiable right now considering inventory numbers and incentives.
Lexus Incentives:
The RX is available with 2.99% APR for 48 months in select regions
$1,500 lease cash is available for the RX
The ES is available with 2.99% APR for 48 months in select regions
More buyers are in the market for luxury vehicles, but demand has backed off of recent highs. BMW models are more negotiable as dealers face the prospect of further market softening. They want to sell their lot inventory ASAP. For example, a DC-area BMW dealership has slashed 10% off the price of this 2020 BMW X3 over the past month.
Our own auto expert Mario says that the X5 and X3 are the most negotiable models right now.
BMW Incentives:
Lease the BMW X3 for $579/month with $6,469 due at signing
Lease the 330i starting at $579/month with $4,779 due at signing
Don’t Go In Blind: Negotiate Car Prices With Confidence
Whether you’re thinking of buying new or used, always know the right price to pay. This is more important than ever as the market continues to change at a quicker pace. At CarEdge, we know that the best deal is the one you completely understand. Research is key to negotiating car prices effectively, and ultimately buying your car for the price you want.
The CarEdge Community is your one-stop shop for car buying advice and consumer empowerment. Join for free, or become a Premium member for unlimited access to CarEdge car buying tools, our team of Auto Experts, deal/lease reviews, and more.
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Whether you’re in the market for a new or used car, you have more negotiating power in 2023 than at any time in the past two years. Our car buying coaches help hundreds of car buyers every week, and they gather real-time insights of the market along the way. The market is changing, and both new and used cars are more negotiable. Which car brands are most negotiable right now? We spoke to YAA’s Justise Lasley and Mario Rodriquez to find out. The consensus was clear: you can negotiate new and used car prices today, especially with these brands and models.
Negotiate With Confidence
Car buying has always been about supply and demand. These days, automakers are admitting to intentionally holding supply down to keep prices higher. Still, many cars and trucks are negotiable for the first time since 2020. As car prices fall, gone are the days of being forced to accept dealer markups. You CAN negotiate car prices in 2023.
Let’s talk about how you can save thousands on your next auto.
Crossovers and SUVs Are Negotiable
During the post-pandemic shortages, both mainstream and luxury crossovers and SUVs saw prices climb very quickly. Now, as the auto market continues to cool off, they have farther to fall. YAA Auto Expert Mario says that he’s been helping YAA members negotiate great deals on several crossovers, such as the following models:
Mazda CX-9
Honda Pilot
Subaru Ascent
Subaru Outback
Jeep crossovers
Volvo crossovers (XC40, XC60, XC90)
Audi crossovers (Q3, Q5, Q8)
BMW crossovers (X3 and X5)
In addition to the thousands of dollars our team of advocates has been saving for our members, even more car buyers have been sharing similar stories on our Community Forum. Deals are even possible for popular models like the Toyota RAV4 and Lexus RX.
Negotiate Truck Prices in 2023
Ram prices are negotiable in early 2023 after a year of markups.
It’s almost shocking how quickly truck prices have fallen, at least when it come to negotiated out-the-door prices.
“Better truck inventory levels have also increased the negotiability of models like the Toyota Tacoma, the RAM 1500, Chevy Silverado, Honda Ridgeline, and Nissan Titan. Buyers are negotiating thousands off of trucks that were selling with markups just months ago,” one of our Auto Experts noted.
Jerry, an industry veteran and YAA Expert, has been surprised to see better deals and more negotiable truck prices for certain mainstream Ford F-150 models. Of course, the new electric F-150 Lightning remains in high demand with low supply, so simply finding one at MSRP would be a big win for the Lightning. See every electric truck’s pricing and range here.
A quick look at YAA Car Search shows that prices for both new and used trucks are softening, with many dealers slashing prices. We’re seeing more trucks sit on the lot for longer, such as this Ram 1500 in Texas. When the dealer adjusts the price that often, you know negotiation is on the table!
Knowledge Is Power In 2023: Negotiate Car Prices With Confidence
Whether you’re thinking of buying new or used, always know the right price to pay. This is more important than ever as the market continues to change at a quicker pace. At YAA, we know that the best deal is the one you completely understand. Research is key to negotiating car prices effectively, and ultimately buying your car for the price you want.
We have hundreds of free guides, online tools and helpful videos to help you get the best deal on your next vehicle. For example, here are a few of our member favorites. Feel free to take them with you to the dealership!
The YAA Community is your one-stop shop for car buying advice and consumer empowerment. Join for free, or become a Premium member for unlimited access to YAA car buying tools, our team of Auto Experts, deal/lease reviews, and more.
The Consumer Financial Protection Bureau (CFPB) is concerned about Americans getting deeper into debt. It’s not credit cards or mortgages that are raising red flags, it’s auto loans. Today, the average car payment is $733 per month. That’s nearly $9,000 a year in car payments alone. Rising car prices are leading to larger loan amounts and record-high monthly payments. The CFPB just released new data that shows auto loan delinquency rates increasing dramatically for deep subprime borrowers.
Just how concerned is the Bureau? The latest auto lending data shows that borrowers with poor credit are struggling to make ends meet, largely due to the surging costs of owning a vehicle.
“We are particularly concerned about the impact of these changes on consumers’ financial health, especially for consumers with near-prime or subprime credit scores,” said the report.
Let’s take a closer look at the most recent auto lending data, why delinquencies are rising, and what lies ahead for tomorrow’s car buyer.
Deep Subprime Borrowers Falling Behind; Delinquencies Up 33%
One in three Americans falls within a subprime lending tier, which includes credit scores under 620. So when the federal bureau tasked with keeping tabs on American spending habits sounds the alarm, lenders listen.
The CFPB measures auto loan delinquency rates by quarter after loan origination. The loan origination year is called the vintage, and delinquency rates are tracked by quarter since the vintage was originated. This is considered the best way to detect when borrowers are taking on more debt than they can handle.
Here’s what the Bureau highlighted in their latest report.
“When looking at delinquency in the first two years after purchase, loans originated in 2021 and 2022 are starting to show higher delinquency rates relative to loans originated in previous years, even when compared to loans unaffected by pandemic-related stimulus payments. For example, auto loans originated in 2021 have a delinquency rate of 0.67 percent in the sixth quarter after origination, which is 13 percent higher than the delinquency rate of auto loans originated in 2018.”
Delinquency Rate in First 8 Quarters After Origination by Vintage
Borrowers with poor credit are faring much worse.
“This trend is even more pronounced for consumers with subprime and deep subprime credit scores. For example, 2022 vintage auto loans for consumers with deep subprime credit scores were 2.4 percent delinquent two quarters after origination, which is a 33 percent increase from the previous five-year high set in 2020.”
Delinquency Rate in First 8 Quarters After Origination by Vintage for Deep Subprime and Subprime Consumers
Why Are Auto Loan Delinquency Rates Rising?
Cars are more expensive, interest rates are rising quickly, and together that equals record-high monthly auto payments. Over the past year, the average car payment has risen from $623/month to $733/month. Go back further in time, and the average car payment was $502 in 2017. When auto loan payments increase nearly 50% in just five years, lower income borrowers are the first to feel the impacts.
Pandemic stimulus packages are over, and household budgets are struggling to adjust as consumer price indices show inflation at 40-year highs. With stimulus money gone (and student loan forbearance set to end at the end of the year), Americans have less money to spend on car payments. Car prices are up as much as 40% since pre-pandemic times, but there’s less money to go around.
Rising Auto Loan Interest Rates Add to the Pain
The federal reserve has made it clear that it will become more expensive to borrow money. Higher-risk borrowers are footing the bill in the form of MUCH higher interest rates. To get a better sense of just how bad it is for subprime borrowers right now, we crunched the numbers to find out how the average auto loan interest rates are adding well over $10,000 to the total cost of an auto loan.
Credit score
Average APR, New Car
Average Amount Financed
Total Interest Paid (60 Months)
Total Cost (Principal + Interest) 60 Mo. Loan
Total Interest Paid (72 Months)
Total Cost (Principal + Interest) 72 Mo. Loan
Superprime: 781-850
2.96%.
$36,725
$2,830
$39,555
$3,403
$40,128
Prime: 661-780
4.03%.
$41,969
$4,440
$46,409
$5,348
$47,317
Near Prime: 601-660
6.57%.
$42,461
$7,470
$49,931
$9,032
$51,493
Subprime: 501-600
9.75%.
$38,802
$10,378
$49,180
$12,603
$51,405
Deep subprime: 300-500
12.84%.
$33,978
$12,241
$46,219
$14,925
$48,903
Used car buyers with subprime credit have it even worse, with the average deep subprime rates over 20%.
Credit score
Average APR, Used Car
Average Amount Financed
Total Interest Paid (60 Months)
Total Cost (Principal + Interest) 60 Mo. Loan
Total Interest Paid (72 Months)
Total Cost (Principal + Interest) 72 Mo. Loan
Superprime: 781-850
3.68%
$28,639
$2,759
$31,398
$3,322
$31,961
Prime: 661-780
5.53%
$30,473
$4,477
$34,950
$5,404
$35,877
Near-Prime: 601-660
10.33%
$28,598
$8,139
$36,737
$9,891
$38,489
Subprime: 501-600
16.85%
$23,935
$11,640
$35,575
$14,258
$38,193
Deep subprime: 300-500
20.43%
$20,311
$12,248
$32,559
$15,057
$35,368
Borrowing less money at lower interest rates for shorter terms is the only way out of runaway interest debt. It’s easier said than done.
Looking Ahead
The CFPB says it is focused on ensuring a fair, transparent, and competitive auto lending market. The Bureau aims to do this by ensuring affordable credit for auto loans, monitoring practices in auto loan servicing and collections, and fostering competition among subprime lenders.
The first step towards keeping auto loan debt under control is to spend less. But there’s only so much that government oversight can do. New car inventory remains historically low (but improving for some), and OEMs announce more MSRP hikes every week it seems. Automakers have been blatantly stating that they plan to keep inventory low long-term, and that’s going to keep new car prices high. And then there’s inflation.
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Is there a silver lining? If you’re willing to consider a used car, you have more negotiating power than at any point in the past year. Data from Black Book shows more used cars sitting on dealer lots for longer, and the bubble has officially burst at wholesale auctions. Dealers are eager to sell their inventory to minimize losses in a rapidly softening used car market. The result is more willingness to negotiate.
For the fifth-month in a row, new car prices climbed to a new record in August. Car buyers continue to pay more, even as signs point towards the bubble bursting. The latest industry insights from Kelly Blue Book and TrueCar make it clear that new car prices have yet to peak.
New Car Prices Rise: The Average Transaction Price Climbs to $48,301 in August
According to new data released this week by Kelley Blue Book, the new vehicle average transaction price (ATP) increased to $48,301 in August 2022, climbing 0.5% since July. August’s new car prices were 10.8% higher ($4,712) year-over-year from August of 2021. Luxury sales remain very strong, now making up 17.5% of overall market share.
Ram, Volvo, Lincoln, Buick, Alfa Romeo and Fiat have the most competitive prices right now, selling 1% or more below MSRP in August. Hyundai, Land Rover, Honda and Kia continue transacted between 5-and-9% over sticker last month. Non-luxury vehicle buyers paid on average $1,102 above sticker price, an increase from July.
The average price paid for a new non-luxury vehicle last month was $44,559. Luxury buyers paid $65,935 on average, but KBB points out that luxury prices are averaging closer to MSRP than they had in months past. Non-luxury buyers paid $1,102 over MSRP in August, an increase since July.
Electric Vehicle Prices Climb in 2022
The new 2024 Chevrolet Equinox EV, starting around $30,000. Learn more.
What price parity? It might be time to give up on that dream, at least for the short-term. The average price paid for a new electric vehicle rose by 1.7% in August. EV prices are now 15.6% higher than they were one year ago. The average price for a new electric vehicle is now $66,524, according to Kelley Blue Book.
Here’s how each market segment fared in August:
Throwback: Remember Manufacturer Incentives?
Manufacturer incentives slowed to a trickle in the second half of 2021, and they’ve yet to return in any meaningful way. KBB found that incentives decreased slightly in August, averaging only 2.3% of the average transaction price. Incentive spending remains at 20-year lows.
Some OEMs are more generous than others right now. Data from TrueCar shows that Stellantis (Jeep, Dodge, Ram, Chrysler) incentives are highest right now, but only at 4.6% of ATP on average. Volkswagen, Nissan and General Motors were all between 3.3% and 3.6% of ATP in August. For perspective, most automakers were offering incentives totaling between 6% and 8% of transaction prices one year ago.
Automakers Intend to Keep Inventory Low, and New Car Prices High
August’s average ATP of $48,301 is more than 80% of the median household income in 15 states. How much worse can it get before new car prices come back to reality? Sadly, even automaker executives note that they’re still selling every car they can manage to make right now. Demand remains strong, so there’s no incentive to lower prices right now.
In fact, automakers are being forthright about their realization that keeping dealer lot inventory slim is best for them and the dealers. This summer, Nissan executive Ashwani Gupta shared the brand’s intention to keep inventory low, and his acknowledgement of who this strategy benefits.
“We have learned that this is more efficient,” Gupta said. “And this is good for dealers. The dealer is ordering a car that is already requested by a customer.”
Today’s car buyers have more leverage than at any time in the past year, if only they would negotiate a deal on a used car insteadWe’ve heard it all before, but what makes August’s data significant is the contrast with now 12 weeks in a row of major weekly price declines at wholesale auctions.
Car Buyers Partly to Blame As the Used Car Bubble Bursts in Slow Motion
As the average price of a new car continues to inch towards $50,000, we must take a step back to understand how we got here, and where we’re headed. On the new vehicle front, the new record was driven by the continued popularity of luxury models, tight but improving inventory, and historically low manufacturer incentives.
Kelley Blue Book notes that luxury share remains near an all-time high at 17.5% of auto sales. This inevitably pushes market averages higher, but it points to a larger underlying problem – new cars are becoming a luxury item out of reach for many. Automakers continue to announce cancellations of their more affordable offerings. The Chevy Sonic, Hyundai Veloster, Mazda CX-3 and Volkswagen Passat to name a few. It’s clear that they’re laser-focused on higher-margin models, no matter how much it further damages vehicle affordability.
Things Are Quite Different in the Used Car Market
We’ve pointed out for weeks that your best shot at a deal is in the used car market right now. You don’t have to spend over $50,000 on a new car with a $1,000/month payment. The used car market is certainly softening at wholesale auctions. Wholesale prices are down roughly 7.5% in three months, with luxury segments seeing sharper declines.
Think Twice About Buying New; Negotiate 10% Off Used Car Prices Today
At CarEdge, empowering you is what drives us. Car buying, selling and ownership are too often accompanied by hassles and headaches. We do our best to save time & money with real advice from auto experts. Right now, the used car market is going through some big changes. In 2023, buyers have more leverage. For four months in a row, used car prices have declined at the wholesale level. Retail prices are softening, and we’re seeing more CarEdge members negotiate better and better deals.
If you’re in the market to buy a used car your goal should be to get 5-10% off of the dealer’s advertised price. Still, some brands are more negotiable than others. In this guide we’ll walk you through what has changed in the market, why you have leverage, and how you can get that 10% off.
Let’s dive in!
Smart Dealers See the Trend; Use This As Leverage
Data from Black Book reveals that days to turn, a metric used to measure how long cars sit on the lot before selling, is increasing. At the same time, there are more used cars for sale right now than at any other point of 2022. Supply is up.
Increasing dealer inventories, paired with higher interest rates, means that car dealers are paying more “floorplanning” cost than they have in years. Floorplanning is the interest payments car dealers make on their inventory. Just like you and me, car dealers typically finance the purchase of their inventory, which means that as inventory sits and interest rates rise, dealers have a financial incentive to negotiate and lower their prices to sell vehicles.
Dealers are once again working hard to sell cars. How do they do that? They lower their prices. Suddenly, with the softening of the market, more dealers are negotiating again, and many are starting to drop their used car prices rapidly. A quick look at CarEdge Car Search shows that more vehicles are seeing price drops. Take a look at this 2021 Chevrolet Equinox, for example. This dealer has discounted the price by 14% in ONE MONTH.
Over the past 35 days this dealer has dropped the advertised price by $3,500! That’s a 14% decrease in price in one month. Wow! As you can see, the most recent price declines are more significant. This is because the dealer is feeling the pressure of increased carrying costs, and a softening wholesale market (they can’t simply go to the auction and sell this car to make money like they could earlier in the year).
Use this information to your advantage! If you went to this dealership and requested an out the door price, be prepared to negotiate an additional 10% off of that amount. Why not? You already know the dealer is desperate to sell this car. Even if you end up with just 5% off, that’s still a win!
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The 5 Reasons Why Now Is A Better Time to Negotiate
When you go to negotiate a used car, know that these are the five reasons why they’ll be willing to negotiate with you. Feel free to even print this out and show them if they give you a hard time!
Floorplan costs going up – We know that it is costing the dealer more money to hold onto their inventory than before.
Demand is going down and cars are sitting on lots – Dealers who overpaid for used cars a few months ago are nervous because demand has softened. This, paired with increasing floorplan costs is a recipe for disaster for a car dealer.
Dealers can’t sell their cars at the auction for a profit – Just a few months ago car dealers were selling used cars at dealer auctions for a profit. Now that option no longer exists. Wholesale prices have crashed, which means dealers are going to need to sell to retail customers, or take a HUGE hit at the auction.
Retail prices are beginning to trend downward, albeit slightly – Car dealers had been holding out. Even while wholesale used car prices plummeted, car dealers were not lowering their advertised prices. Well, that trend has reversed, and we are finally starting to see a softening in retail asking prices.
Dealers want to try and make a profit in the F&I office – Many car dealers are currently trying to sell used cars that they bought months ago for way too much money. Their best bet to breakeven on these deals is to take a loss on the front-end and to try and make it up on the back-end (finance and insurance). As long as you’re familiar with how to finance a car the right way, you should be able to get a better deal after all is said and done.
In fact, you can now finance with CarEdge to secure a low rate through our credit union partners. Not interested? You can still use your pre-approval as leverage to negotiate a lower APR at the dealership. Learn more about financing your car purchase with CarEdge!
Work With Smart Dealers
Some dealers just don’t look at the big picture and are oblivious to the car price trends we’re seeing right now. Not every car dealer understands that right now is the time to give up some of the profit they had planned to make on a vehicle in order to make a sale today before prices drop further in weeks to come. CarEdge Car Dealer Reviews and Markups.org are great places to learn what others have experienced at dealerships near you. Crowdsourcing car buying experiences is changing the game for the better!
With both new and used car prices still greatly inflated, it’s important to think about how today’s buying decisions could affect your future finances. New car prices are up 6% year-over-year, and 24% since July 2020. There’s no sign of new car prices coming down, and automakers seem to be announcing MSRP hikes weekly.
If you’re determined to buy a new car, don’t expect MSRPs to go down at all. However, more buyers who work with CarEdge are able to buy at MSRP, with some even securing a deal under MSRP. Check out our latest success stories!
On the other hand, used cars are more negotiable than at any point in time this year. If you’re looking for a better deal, here’s what you need to know: used car prices are declining at the retail level, but we expect price drops to continue for many weeks to come. There will be better deals in the weeks ahead.
While making long-term predictions is difficult right now, we’re confident that used car prices will be even more negotiable (with lower sticker prices) at the end of November than they are today.
If you are in the market for a used car right now, your goal should be to negotiate 5-10% off of the sticker price, or consider waiting a few more weeks (or longer) for the market to soften further.
Is It a Buyer’s Market?
Yes. As a buyer you have more leverage than at any point in the past 18 months. Does this mean used car prices are “good” or “fair”? No way. Used car prices rose 45% in 2021, so finding a true bargain is next to impossible. Used car prices remain inflated, but for those who need a vehicle, market conditions have improved, and are likely to continue to improve. Here’s what’s clear: you have more leverage today than at any other time in 2022.
CarEdge Insights
