Tips on Buying Cars: Honda, kelley blue book, current marketplace

Question
Hi Jeff,

Any advice would be greatly appreciated!

1.  Is the price online subject to negotiation?  I have salespeople telling me, the price is negotiable but only very little, like a few hundred dollars.  Is that true?

2.  I am willing to purchase a 2002 Honda Accord SE Coupe with 53K for around 13,500.  Is this a wise decision?

Thanks so much for your assistance

Mike

Answer
Unless they specifically advertise themselves as a non-negotiating, "no-dicker-sticker" dealer, then the price is always negotiable.  Some of the lower-priced new cars (base model Ford Focus, for example) have reduced sticker prices where the negotiating has been done for you, as the profit margin left for the dealer is extremely small.  So, in those cases you may only get $100-$200 knocked off the sticker price.  Salespeople will tell you "there's little room to negotiate" because they want to get your thinking higher when it comes to the final selling price.  As for the 2002 Honda, that price seems a little high.  If you go to Edmunds.com and price it out, the retail price for one in clean condition is $12100-$12200.  Kelley Blue Book puts it at $14500-$15000, which is what the dealer will use when they try to justify their selling price ("gee, what a deal, we're $1500 BELOW Kelley Blue Book, what a steal!").  But there's an important difference: Kelley's number is an inflated, "asking" price, as where Edmund's figure is based on actual selling prices in the current marketplace.  I can never tell someone exactly what to pay for a particular vehicle, but I think you can do better on this Honda.  Go to Edmunds.com, check out the used vehicle pricing, print it out and take it to the dealer; you should get the car for less.