John W wrote:
> I'm buying a 2005 Honda Accord EX V6 sedan. The MSRP is $26,800 & invoice
> price is $24,024. The dealer is selling the car for $90 under the invoice
> price. I'm financing the car over 60 months at 2.9%. I'll be putting $2,500
> down on the car so the monthly payment including the 2.9% financing & 7%
> Ohio sales tax is $411.08 a month. Does that sound like a fair price or do
> they have slack to come down more? I wouldn't think there would be as much
> room on a Honda as some other cars to deal but figured I'd get a second
> opinion before I say yes to the deal.
>
> Thanks,
>
> John


John,

Honda has a 3% holdback applied against the base MSRP. In your case the
dealer will get about $804 from Honda on the EX V6 sedan. If the dealer
is giving you $90 under invoice he still has a potential profit of $714.
If it was me I haggle for a lower price.

For holdback info see:

http://www.safecarguide.com/gui/neg/holdback.htm

Best of luck.....Bob
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