DON'T PAY MSRP (New Car Prices) Kevin Hunter The Homework Guy

Here's why you should never pay MSRP for a new car right now. Hey folks, Kevin Hunter here, the Homework Guy, and today I've got one message for every car buyer out there. Stop paying MSRP if you are for your new car. Yeah, you heard me right. MSRP stands for Manufacturer's Suggested Retail Price. It's just that, a suggestion. But right now, here in 2025, that suggestion is wildly out of sync with the real car market. Let us show you why. Inventory is up, demand has leveled off, interest rates are still high, and yet many dealerships are still pushing vehicles at full sticker price, or worse, above MSRP with junk add-ons, and enough knuckleheads are letting them get away with it that they really don't want to stop. But here's the truth. Dealers are back to negotiating. Before the end of today's show, we'll wrap up with five techniques to help you land a deal under MSRP. Let's get Elizabeth in here to explain why, if you're paying sticker, you're leaving a lot of money on the table. Thanks, Kevin. Well, you might be thinking, but the news says car prices are still up. That's a dealership game, folks. They're banking on you thinking that, while not really knowing the real numbers. So... And since when did the news ever get it right? Yeah, there you go. Well, let's break it down together. Why paying MSRP today makes no sense. Number one, supply is up. Very up. Most brands have new inventory returning to pre-pandemic levels. Lots are full again, especially for brands like Ford, Subaru, and Nissan. That means more choices and more power for you. Number two, incentives are back. Many manufacturers are quietly rolling out rebates, loyalty cash, and low APR offers, but your dealer won't tell you this unless you ask. Number three, dealer holdback is real, by the way. Dealers get two to three percent of MSRP back from the manufacturer, even if they sell the car at invoice cost. That's right. So don't believe them when they say, we're breaking even, or we're losing money on this deal. Look around you at the casino-type showroom that you're sitting in. They likely told every customer before you that same thing, we're losing money. But believe what you are seeing, and you will know that they certainly are not. Number four, market adjustment markups are disappearing. Whew. The days of the $5,000 over sticker are fading fast. If your dealer is still doing this, it's time to walk. Instead of paying for MSRP, aim for this. At least two to five percent below MSRP for most mainstream brands. The only exception would be the top of the line Toyota Sienna. Ask for the invoice price. Many are paying near that number. And if they won't budge, there are other dealers out there who certainly will. That's right. So here's the bottom line. Don't settle for convenience. Only settle for the best deal. Don't fall for the nonsense. You're shopping for a bottom line price, not a padded payment plan. Now here's how dealers trick you. Dealers will most definitely try to shift your focus, saying, let's talk about monthly payment. Wrong. We'll throw in floor mats. Wrong again. We have several others coming in on this one. Totally BS. Big lie. It's the last one like this. Wrong. Now what we're going to share with you next are techniques to use for those of you who still think it's a good idea to go into a dealership because you're just so eager to see what they got. So for those of you who just want to go in to see what kind of deal you can get, these next five techniques are for you. So you're at the dealership. Let's talk about what you should do now and how to get the dealer off MSRP. These are some of my favorite word tracks and techniques. Technique number one, break their MSRP anchor. When the dealer says this vehicle is priced at MSRP, that's standard for this market. Here's what they're doing. They're attempting to anchor you high and they're hoping you'll accept the MSRP baseline without pushback. Here's what you should say. You know, and I know that MSRP is just a suggestion, not a rule. I've done the research and I know the invoice is lower and I'm aware that you're getting hold back and incentives. So let's talk about a real number, not MSRP, padded by other marketing and fluff products. Here's why this works. It shows you understand their game, you're confident, and you're not under the magic spell that MSRP casts over most car buyers. Technique number two, use the invoice plus offer. The word track to use, I'm prepared to do this deal at 500 bucks over invoice. That gives you profit and it's fair based on current inventory and incentives. If they push back, just say, well then show me the invoice. If you're telling the truth about your cost, this should be a no brainer. Yes. A pro tip right here, most dealers won't show you the invoice because they don't want to because they're lying, which makes your confidence even more powerful. If they do it, it'll still have margin, which is hold back and floor plan credit built right in. That's right. Technique number three, use a competing quote, even if it's hypothetical. So here's a word track for you. I've got a quote from another dealer for 1200 under MSRP with fewer add-ons. If you can match or beat that, I'll sign today. So the key point here is even if you don't have a quote in writing, just say it confidently. Dealers will match phantom offers all the time just to keep the sale. Technique number four, it's the time to walk move. If the dealer won't budge and you've tried the above, a word track here, stand up and say, okay, no problem. I'm going to take my business elsewhere. I'll find a dealer who wants to sell cars, not hold customers hostage at MSRP. Here's why this works. You will be called back often before you leave the car lot. Exactly. Technique number five, disarm the monthly payment trap. The dealer says, what kind of monthly payment are you looking for? And you should respond sharply. We're not talking about monthly payments. We're talking about price. I negotiate the price first. You can work on the payments based on the price after that. And a bonus tip, dealers love to pack your payment with fake fees and inflated rates. So don't give them that opening to work with. A bonus tip here, walk away power, the strongest line you'll ever use. Say this, I'm not buying today unless you're willing to go below MSRP. If not, I'll just thank you for your time and take this quote to your competitor. Then stand up, no threats, no attitude, just quiet confidence, grab your keys and then walk out without a look back. That's right. If you're in the market for a new vehicle, remember that knowledge is your weapon and preparation is your armor. So if you're not totally confident in your negotiation capabilities, get us in your corner. If it seems too hard to go to loan, but you just can't pay for the full service car buying help, you can still get us to assist you directly. We offer low cost self-help packages, 69 is the highest, to get you the research on what's the right price to pay on your vehicle choice, your trade-in values and general advice where you go out there and visit dealerships. And yes, we do have a full service option, our hassle-free car buying service, where we do all the work so you don't have to. If you know what you want, you can afford to pay for it and you're ready to buy, you're probably a very good fit for us. So jump on the website, take the first step, which is buying the phone call. Let us go to work for you. The full costs and details are on our website, thehomeworkguide.com. Click menu and choose hassle-free car buying service. To get started, you only need the $99 phone call of me. I go over everything with you, cover your questions and make sure this is the right fit for you too. Thank you all for tuning into our Homework Guy show. If you found this video helpful, smash that like button, subscribe if you haven't already, and share this video with a friend who's shopping for a car as well. Elizabeth and I are here to help you stay informed, stay strong, and beat the dealerships at their own game. To all of you regular viewers and subscribers out there, you guys rock. God bless you all. I'm Kevin Hunter, the Homework Guy, signing off on behalf of Alex Stevens, our auto expert, the amazing Elizabeth, our negotiation genius, and the entire team of skilled coaches we have in our hassle-free car buying service. Please stick with us a moment as we scroll through some of our recent car buying service reviews. Thank you for listening.