Tips on Buying Cars: Opinion on car price

Question
hello Steve,
i'm in a market for a new car, and been scouring the internet for the past week. what i'm looking for is a Honda Civic. well, i think i found one. a dealer not too far from where i live offered me a fully loaded 2013 Honda Civic EX(with NAVI). this is the internet price, with the caveat that i have to take advantage of the price 48 hours after it was offered. the internet price that was given to me was $19,900. the MSRP is $23,105.
my question is, do you think this is a fair price, or should i try to negotiate it even lower? thank you for your time.

Answer
Hello Ron,

Very sorry to take so long getting back to you I have been on vacation this last week and I forgot to suspend my account while I was gone... Let's get to your question:

I'm going to make some assumptions because I don't have enough information to tell you how the pricing looks if I don't.

Assumptions -the car you're looking at is a brand-new 2013 Honda Civic EX-L w/Navi and the 1.8 L engine in a two-door automatic... If it's a four-door automatic or a two-door stick it will only make a very subtle difference.

Currently there are financing incentives (low APR), a small cash rebate and dealer cash available on 2013 Honda Civic's these programs run until 3 March 2014. The low APR is .9% interest financing for up to 60 months and 1.9% financing for 72 months

Hello Ron,

Very sorry to take so long getting back to you I have been on vacation this last week and I forgot to suspend my account while I was gone... Let's get to your question:

I'm going to make some assumptions because I don't have enough information to tell you how the pricing looks if I don't.

Assumptions -the car you're looking at is a brand-new 2013 Honda Civic EX-L w/Navi and the 1.8 L engine in a two-door automatic... If it's a four-door automatic or a two-door stick it will only make a very subtle difference.

Currently there are financing incentives (low APR), a small cash rebate and dealer cash available on 2013 Honda Civic's these programs run until 3 March 2014.

The low APR is .9% interest financing for up to 60 months and 1.9% financing for 72 months. The finance options at these low rates essentially amounts to free financing and has a value to you of approximately $1500 over the term of the loan at 72 months,

The rebate is a $500 student rebate and a $500.00 military rebate which you probably don't qualify for but if you do then there's another 500 bucks sitting there for you to use. Lastly there is currently $1000 dealer cash available on this vehicle which the dealer is not obligated to let you have but most dealers do in order to move the car. I am going to guess that the pricing of $19,990 already has the thousand dollar dealer cash discount included if you read the fine print of the ad. If not then you can negotiate for that money. Also included in the dealer's invoicing on this vehicle is a 3% dealer holdback which he gets paid quarterly which equals another approximately $600 bucks. The standard invoicing on this vehicle with an MSRP of $23,105 is just south of $21,500 lets call it $21,450 sooooooo what does that mean?


$23,105.00 MSRP

$21,450.00       Invoice
(1,000.00)      Dealer Cash
  (600.00)      Dealer Holdback
___________  
$19,850.00       Bare bottom price

and if you can buy this car for $19,900 and can finance it at 1.9% interest for 72 months or .9 financing for 60 months then you should buy the car there is no more meat on the bone.

One thing to be aware of on these new vehicles that are not the cure in your model is that they do have a blue book value already but even the used car blue book value on these new cars is over $21,000 and those cars would come with no incentives at all except the certification goodies (low rate but not .9% and a better warranty) if you are able to buy the vehicle for the 19,900 then the dealer will be making approximately 400 bucks which is what I consider to be a fair profit for his $20,000 investment.

Feel free to ask as many follow-up questions as you want I am here until you are completely satisfied and can give me perfect survey results of 10 across the board with maximum bonus points.... Good luck let me know how it goes