Negotiation is now back!

That's right. According to our own first party proprietary data, the average transaction price for a new car fell below MSRP for the first time in two years in March 2023, and is continuing to fall in April and May as well. The average sale price was well below the average MSRP, which is a positive indication that the market is improving for buyers, who've been paying above MSRP since the summer of 2021.

There are a few reasons why car dealerships are now going below MSRP. One reason is that inventory levels are starting to improve. The chip shortage that has plagued the auto industry for the past two years is starting to ease, and automakers are now producing more cars. This means that dealerships have more cars to sell, which gives them more leverage in negotiations.

Another reason why car dealerships are going below MSRP is that interest rates are rising. As interest rates go up, the monthly payments on car loans go up as well. This makes it more expensive for people to buy cars, which means that dealerships have to offer lower prices in order to attract buyers.

It's still too early to say whether the trend of car dealerships going below MSRP will continue. However, the fact that it's happening at all is a good sign for buyers who have been struggling to find affordable cars in recent years.