Being a car buying novice I hear all this talk about holdbacks, invoice, rebates, chargebacks, and a jillion other supposed ways to get a good price on a car. Truly, I don’t know if any of that shit works so I just walked into a dealership just to see how much cars cost. Now I realize that is a mistake. Edmunds has a Prices Paid – Buying & Leasing forum where scores of car buyers share their actual out-the-door (or OTD) prices paid. With this kind of information, how can I lose or overpay? I should have looked at the Honda Fit forum before my trip to the dealership.

This afternoon I spent about 90 minutes at my local Honda dealer — Serramonte Honda in Colma, California scoping out the 2008 Honda Fit. I took a solid test drive including a near accident turning left out of the parking lot. We went around the block and up some hills. I am mildly disappointed in the Fit’s lack of uphill power. However, the price is right and I like the interior space. Knowing all this I go into the dealership thinking I will probably buy this vehicle if not today, this month.

Inside the dealership I realized I hadn’t done enough homework to know how much I should pay. The dealer’s initial proposal was $17,700 out-the-door for base Honda Fit with some of the necessary add-ons like power windows, cruise control, AC, etc. I knew the MSRP sticker of $16,100 I thought car prices are supposed to sell for BELOW the sticker! Am I right? I said $14,500. The manager came over to show me what the dealer paid in invoice of about $14,800 — which matches the Edmunds invoice price — and that they would need to sell for $16,885 just to make out OK on the sale of the car. I said no way, knowing that I was sitting there unprepared on price information.

The Edmunds forum would have confirmed me that a regular Honda Fit can be had for less than $16,885. No remorse for passing on the dealer’s offer.