Decoding the “Internet Price”: A Car Buyer’s Guide to Cracking the Code

The term “internet price” in the context of car buying refers to a discounted price advertised online by dealerships, typically lower than the Manufacturer’s Suggested Retail Price (MSRP) or the price you might initially encounter on the dealership lot. It’s a bait, a hook, designed to lure you in with the promise of savings. Think of it as the dealership’s online “welcome mat,” rolled out to attract potential buyers savvy enough to do their research online. However, understanding what the “internet price” really encompasses and what it doesn’t is crucial to avoid unpleasant surprises and ensure you’re getting the best possible deal. It’s rarely the absolute final price, but rather a starting point for negotiation, often contingent on specific factors like financing through the dealership, claiming certain rebates, or trading in a vehicle.

Understanding the Nuances of the Internet Price

The “internet price” is a marketing tool, plain and simple. Dealerships know that the vast majority of car shoppers start their journey online. To compete for your attention, they offer what appears to be a competitive price, hoping you’ll click through to their website and, ultimately, visit their showroom.

The Allure and the Potential Pitfalls

The allure is obvious: a lower price that makes your dream car seem more attainable. However, the potential pitfalls are just as real. The advertised “internet price” can be misleading if you don’t carefully scrutinize the fine print. It’s rarely the all-in price, and it’s crucial to understand what additions you are responsible for.

Decoding the Fine Print: What’s Included and What’s Not

Here’s where things get interesting. The “internet price” usually includes the base price of the vehicle, and may include some manufacturer incentives or rebates. However, it almost never includes the following:

• Taxes: State and local sales taxes are always added to the final price.
• Title and Registration Fees: These are government fees for transferring ownership.
• Destination Charges: This is the cost of transporting the vehicle from the factory to the dealership.
• Dealer Documentation Fees: These fees cover the dealership’s administrative costs. They can vary widely, so be sure to ask about them upfront.
• Add-ons and Options: Features beyond the base model will add to the price.
• Financing Charges: Interest rates and other financing fees are not included in the “internet price.”
• Trade-in deductions: If you’re planning to trade in your current vehicle, the value of that trade-in is deducted from the final price, not reflected in the initial “internet price.”

The Importance of Verification and Negotiation

Always verify the “internet price” with the dealership directly, either by phone or email, before visiting the showroom. Confirm what’s included and what’s not. And, most importantly, be prepared to negotiate. The “internet price” is simply the starting point. Arm yourself with research, be willing to walk away, and don’t be afraid to counteroffer.

Frequently Asked Questions (FAQs) About Internet Car Prices

Here are some commonly asked questions about internet car prices, answered to provide further clarity and guidance:

1. Is the “Internet Price” a Guaranteed Price?

No, absolutely not. The “internet price” is generally an advertised price and is subject to change based on various factors, including your eligibility for certain incentives, your credit score (if financing), and the specifics of your trade-in (if applicable). It’s a starting point, not a locked-in deal.

2. What are Common “Hidden” Fees Added to the “Internet Price”?

Common hidden fees include dealer documentation fees (doc fees), which can range from a few hundred to over a thousand dollars depending on the dealership and state. Also look out for add-ons like paint protection, fabric protection, or security systems that may be pre-installed on the vehicle.

3. How Can I Negotiate Effectively After Seeing the “Internet Price”?

Do your homework. Research the market value of the vehicle you want, and know your credit score. When negotiating, focus on the out-the-door price, which includes all taxes, fees, and add-ons. Be prepared to walk away if the dealer isn’t willing to meet your target price.

4. What is the Difference Between MSRP and “Internet Price”?

The MSRP (Manufacturer’s Suggested Retail Price) is the price recommended by the manufacturer. The “internet price” is a discounted price advertised by the dealership, often lower than the MSRP to attract online shoppers.

5. Can I Get the “Internet Price” If I Don’t Finance Through the Dealership?

Possibly, but it depends. Some “internet prices” are contingent on financing through the dealership. If you plan to pay cash or use outside financing, confirm with the dealership whether the advertised price still applies. Often, the price will increase if you choose to not finance through them, but it’s still possible to negotiate.

6. What If the Dealership Refuses to Honor the “Internet Price” Once I Arrive?

This is a bait-and-switch tactic, and it’s unethical (and potentially illegal). Document everything. If the dealer refuses to honor the advertised price, politely leave and report the dealership to the Better Business Bureau or your state’s Attorney General’s office.

7. Are “Internet Prices” Always the Lowest Prices Available?

Not necessarily. While “internet prices” are often competitive, it’s wise to compare prices from multiple dealerships and consider getting quotes from online car buying services. A little extra research can uncover even better deals.

8. What Does “Plus Tax, Title, and License” Mean?

This phrase indicates that the advertised “internet price” does not include state and local sales taxes, title transfer fees, and vehicle registration fees. These are additional costs that you will be responsible for paying.

9. How Do Rebates and Incentives Affect the “Internet Price”?

The advertised “internet price” often includes rebates and incentives that you may or may not be eligible for. Confirm your eligibility for all advertised rebates and incentives before committing to a purchase. Some rebates are based on factors like military service, recent college graduation, or loyalty to the brand.

10. Should I Contact the Dealership Before Visiting in Person?

Yes, absolutely. Contacting the dealership before your visit allows you to confirm the “internet price,” verify vehicle availability, and ask clarifying questions about fees and incentives. This can save you time and prevent unpleasant surprises.

11. How Can I Determine if the “Internet Price” is a Good Deal?

Research the fair market value of the vehicle you’re interested in using resources like Kelley Blue Book, Edmunds, or Consumer Reports. Compare the “internet price” to the fair market value to determine if it’s a competitive offer.

12. What Should I Do If I Suspect the Dealership is Engaging in Deceptive Pricing Practices?

If you suspect deceptive pricing practices, such as bait-and-switch tactics or hidden fees, document everything, including screenshots of the advertised price and any communications with the dealership. Report the dealership to the Better Business Bureau, your state’s Attorney General’s office, or the Federal Trade Commission (FTC).