It depends on your point of view: an SUV is a safer vehicle to be in as a passenger in an accident, but it is a less safe vehicle for the person who gets hit by one. Again Age is a big factor. A new small car is probably going to be safer than an old SUV. 

Yes, smart shoppers buy new cars below the dealer invoice price all the time. All it takes is a motivated dealer and a buyer who knows how to negotiate.