Tips on Buying Cars: Buying from an Internet Specialist, invoice price, dealer invoice


Question
I live in the Kansas City area.  Wanting to purchase a new Honda Accord, I went to the web site of a local Honda dealer and made and appointment via email to see a salesman.  When I met the salesman, he said he was the dealer's "Internet Specialist".  His business card said the same thing.  He said that since I came to the dealer through their web site, I was entitled to special Internet pricing.  He said that most people that are web-savvy have already done their homework, know exactly what they want and know what they're going to pay for it.  So he showed me his price list that showed the MRSP and dealer invoice of every Honda Accord.  He even xeroxed a copy for me to take with me.  He said his non-negotiable price was $100 over the invoice price plus $490 shipping.  The prices, including the shipping, matched exactly with what I had already discovered on the web.  He also gave me a list of the istalled prices of all the available options.  He said that the only negotiating he was allowed to do would be with my trade-in -- but I don't have anything to trade in, so that really doesn't matter.  He said that if I had just showed up off the street and started talking to any other salesman, they would have started with a much higher price and I would have had to negotiate down to that price.  He volunteered all of this within the first five minutes of our conversation, even before he showed me any car.  Should I believe this?  Is it common for dealers to offer such pricing to their customers now?  Since I hate negotiating, it's a relief not to have to worry about it.  But I wonder if I could have negotiated something less than $100 over invoice if I had started from scratch.  

Answer
Hi Joe
I really like your question...The salesman is not trying to pull the wool over your eyes...buying a new car has really changed over the last few years with the internet in place...
The dealer will take a deal from a customer thats in the know... a few hundred dollars over cost...then hoping to have you as a service client or better still when you make the deal you will go in the box as its called ( to see the business manager )...when there you will be offered special bank rates...ext warranty's...rust proof...perma shine...insurance etc...these guys are sharp...and a good business manager will get you to buy something...the business managers i have worked with in the past were in the $ 150.000 to 200.000 income...the dealer therefore will make mega bucks in the box on average $ 1500 to $ 2000 if you bite...
You know Joe its funny 2 years ago i would never have told you what i just have... being on the floor sales myselv...
Anyhow i think the salesman is up front...test him...go to another dealer and be firm offering $ 500. less...and if you dont get it walk out...
I really like to hear back from you as to how you did...going through the box and what you were offered...
Regards
 Ray