If you have been to a Honda dealership to buy a new or used car in the last few months, you have likely be quoted a price for a vehicle. Whether it is an Accord, Civic, Odyssey or CR-V you must understand that this is simply the price for the vehicle and not the price you are going to pay. When all is said and done, you are going to end up paying a lot more unless you negotiate other fees such as the dealer admin processing fee, title, tag and taxes. You may have a quote for a Honda Accord at $21,000 and find that you are being charged for $23,500 when you finish up the paperwork. How is this possible?
Remember that the price of the car is simply the price of the car. This does not include all the added fees, warranties, insurance, etc. You will find the dealership will try to sell you GAP insurance, tire insurance, warranty packages and even extra oil changes. You never know what they will try to throw at you to get the price higher. Instead of falling for this, we suggest getting a walk away price in which you will walk out the door at a specific price. If you want to walk away at $21,000 you are going to have to negotiate that.
If you are a great negotiator you will be able to get the dealer admin processing fee waived or dropped. Your goal should be to get this fee to $0. A dealer admin fee of $500 or more is beyond ridiculous. Sadly, most car buyers won’t even notice this because they are so happy to drive away in a brand new Honda Civic or Accord. Try not to get too excited about your new vehicle and recognize that you can save quite a bit of money by getting the Honda dealer to drop the admin fee.
Look at the total amount you are going to have to pay and start negotiating from there. They will be fine with dropping the price of the car because they know they can get money out of you elsewhere including a bigger down payment or a higher interest rate on the car.