Is this a good deal?

I can't answer the 1st and 3rd as those can only be answered by the folks in your region.

As for add-ons, this is where dealerships make a bunch of money. Since you haven't bought a car before, here's the typical scenario: You'll work the deal with the salesperson on what car, color options and price. After that, you'll meet with the finance person who will try to sell you an extended warranty, upholstery protection, paint protection, alarm system, warranties for the tires, etc.

Decide which of these make sense to you. Be aware that the costs typically are much higher than you can get afterwards. For example, check out the extended warranty offered here on Priuschat. There have been only a couple of folks that have been able to beat it. Don't be pressured by the finance person who may state that you have to purchase the extended warranty at the time of purchase. Not true..

You can decline all of this stuff. You're not obligated to purchase any of it. Check out www.bankrate.com head off to the car loan section for very good info on working with dealerships.

A couple other pointers: Decide what else you want for options. Try to work deals for these if you're interested: Most folks have been unhappy with the tires that come with the car. See if you can get the tires swapped to Michelin Hydroedges or Comfortreads. Many folks have worked deals to replace the rear bumper applique with the Matrix rubber bumper protector. This has to be part of the negotiation process. They won't go for it after you agreed to buy the car. And, check out the documentation fee. This mandatory cost varies widely between dealerships.

Lastly, they also make money if they finance the car. Do some homework ahead of time by shopping around for the lowest finance rate. Typically, credit unions offer the lowest rate. Ask the finance person when you sit down with them if they can beat it.

FWIW, the price you're quoting is what I paid for my car which is also the AM package, which is MSRP.

I may be one of the few people that truly enjoys the car buying process. I'm not quick on my feet or a good debater. But, armed with facts (e.g. info from here and bankrate.com), I can walk in knowing what I want and what I'll pay for it and not get thrown off by their tactics. The dealership will be able to size you up pretty quickly. If you read ahead and talk with knowledge, the process is easier because they know you've done your homework and they actually respect you for it and won't pressure you with the add ons.

Cheers,

-bob