Employee Pricing from Auto Manufactures; Scam or Sweet Deal?

 by: Peter M. Humleker

With all the employee pricing being hyped and advertised on the media I thought I would write a short article on the subject. I have also gotten a lot of questions in emails about the subject.

Here’s the deal: Employee pricing is the lowest price you will ever be able to purchase a vehicle for period.

Employee pricing is usually several hundred dollars below invoice.

So how is the auto dealer making any money selling at employee pricing?

It’s simple… They are reimbursed from the auto manufacture. For example General Motors gives $1500 to the dealer for every car sold at employee pricing.

When you combine employee pricing with the rebates your getting the very best deal possible.

Obviously the dealer is still going to try and up his profit margin in several other ways.

If you are trying to trade in a vehicle then the dealership is going to try and offer you even less than he normally would.

Because of employee pricing everyone and their brother is buying a new car right now and the dealerships are stuffed with used car inventory. Therefore unless they can “steal” your trade they are really not that interested in taking in another used car in their inventory.

If you want to buy a car at employee pricing then this would be the best time to try and sell your trade in vehicle yourself and save yourself the headache of muddying the water with your employee price purchase.

The other question I get asked a lot lately is, “How do I know I am getting the actual employee pricing?”

They are doing national advertising for employee pricing and it is coming from the auto manufacture. When the actual auto manufactures come out with an incentive program the dealers must adhere to it!

If they tried to be dishonest and sell you the car you want above the employee pricing they would be in extreme hot water with the manufacture, could lose their franchise, and get sued.

Therefore you don’t have to worry about not getting the actual employee price if it is advertised. The only time the numbers can get skewed is when you throw in your trade vehicle which you owe money on. Again, this is why I encourage you to sell your vehicle yourself.

Last but not least, just because there are great deals at employee pricing does not mean you should go out and buy a new car. If you can’t afford the car or the payments then it does not matter how good a deal you got.

You’re still putting yourself in financial hardship. Think before you buy!