Happily Back to Being Part of the Problem

Last week, I purchased a brand new, 2009 Honda Fit.


I settled on the car after doing online research, and finding that it is very well recieved. I found out the MSRP and the invoice price by buying a report at Consumer Reports for $14 (though I probably could have gotten the same information for free if I looked hard enough), then I simply emailed about five or six dealers and asked them for their best price on a base model with manual transmission. About three dealers started bidding, and I managed to get one for about $650 below the dealer's bottom-line invoice price--a price that also included a $299 keyless entry system which is not standard equipment (my only upgrade). I don't think I could have gotten it any cheaper--I'm kind of amazed I managed to get it as cheap as I did. Dealers are really desperate right now to move product, even companies like Honda.

So the final price which did not include local taxes and registration fees which are uniform and fixed by the state and county, was just under $14,000. After the 10% (yes, 10%) local sales tax plus other licensing fees, I paid about $16,300 "out the door." Thanks to the stimulus package, I should be able to deduct $1400 (the sales tax) from my income next year, so I'd get 1/3 of that back, or $470. This means complete out-the-door price for me including adjusted taxes was about $15,800.

You can subtract the value I got for my 2001 Toyota Prius, which needed a $4900 repair to the hybrid battery and controlling computer. Amazingly, my old mechanic bought it from me for $2500. So true final price to me of the new car was $13,300. Because of all the safety features, amazingly, my monthly insurance cost is almost exactly the same. Also amazingly, I am getting about the same mpg as I did with the Prius--in the neighborhood of 40 mpg.

Thus blowing all to hell my plans to save, save, save and be frugal this year. But the car, she is cool. And my bike fits in the back.