Tips on Buying Cars: buying a new car, honda fit, honda dealers

Question
Dear Clark,  I am in the process of buying a new car (Honda) and need some lingo to use in response to the barrage of salesmen.  I know there are lots of ways they make extra profit on a typical car but I am not sure of the terminology.   They typically quote a price that they paid (this price is hard to believe as it seems that they cannot make any profit at that cost).  Also, is there a website that can enlighten me?  Thanks in advance for your help.

Sincerely, Dick Schlueter


Richard Schlueter
Sr. Design Engineer
Kaman Aerospace
217 Smith Street
Middletown, CT 06457
PH# 860-632-4588
FAX# 860-632-4422
email- Dick.Schlueter@kaman.com  

Answer
With the exception of the Honda Fit, and Honda Civic most Honda Dealers will sell anything on there lot for $250 over invoice.  To make sure you are getting the best deal have some of there own invoices on the particular model you are looking for.  You can find these invoices at kbb.com , or edmunds.com .  Tell the sales person you will pay $250 over invoice less any dealer cash.  You might even be able to get lower than that, but not much.  The Civic and Fit do not fall into this same deal.  You will most likley pay sticker for both of these units...and that is not a bad deal.  Good luck and happy buying.