Car Buying Tips

Article Navigation

Click Here for more articles

Employee Pricing from Auto Manufactures; Scam or a Sweet Deal?

by: Peter Humleker

With all the employee pricing being hyped and advertised
on the media I thoughtI 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!

About the author:
Peter Humleker is a former General Manager
of an Auto Dealership and a Consumer Advocate.
He is the author of Auto Dealer Executive Breaks
“Code of Silence!”

Circulated by Article Emporium