We ended up a few hundred under invoice before the rebates, which dragged us another $500 below. So you're not getting the lowest-possible price. But they can only get it below invoice by either (1) using rebates (which doesn't really count since those are direct from the factory to the consumer), or (2) cutting into their holdback. Frankly, though I'm pleased with the price we got, it's not reasonable to expect cars to be sold so close to invoice - it costs dealers a lot to market, store, and display cars, and the the holdback isn't much - usually 2-3% of the car's sticker price, and they only get all of it if they actually sell the car fairly quickly.
In a frank conversation with the finance manager after our deal was done, he said it's frustrating for them because they're selling $20k cars for a $400 profit - like I said, they're cutting a couple hundred into the holdback, and we didn't even haggle the price, that's the price they're selling them for. The problem is so much competition for so few sales, and all information is available to the consumers, which means they're being squeezed by an ever-larger percentage of their would-be customers.
We're all buying cars for 2% over what the dealers are actually paying these days - whereas 20 years ago that was more like 15% for imports and 20% or more for Detroit cars. It's those huge profits of days gone by that make us all despise car dealers so much - they held all the cards, they acted like they were doing you a favor while they walked away with thousands. But we've reached a point now where they're getting basically nothing from new car sales.
Of course, they still make a *LOT* of money on dealer financing when customers take that; "trade-ins" are pure profit since they give pennies on what they'll turn around and sell the car for, once one factors in the "one deal" method that most negotiate with (meaning they really raise the price of the new car and/or the cost of the financing to offset anything they're claiming to "give" you for your trade-in); and options typically cost them very little compared to what they're charging. Dealer service is pretty profitable at the inflated dealer prices, although even here their desire to be more competitive with independent shops is lowering their profits for all non-warranty work. Some dealerships up here are getting into collision services to boost profits. But customers like me, who come in without a trade-in, with pre-arranged external financing, buy no extras and do my own work, make them almost nothing.
So yeah, you're getting a decent price.