Employee Pricing

“Have any of you folks looked into this or know of anyone who has? Any thoughts about it?

I'm dreaming of getting a bigger truck since that looks to be were the deals are OR either a gas sipping car.

Voice you opinions please, I would like to hear some feedback, are there really any deals out there?”

“the way gas prices are, get a economy gas saving car and stay away from the gas guzzlers...less spent on gas = more trails to head out to :D”

“Half my wifes family works for GM and they say the prices are legit. They are actually the prices an employee would pay.”

“Perhaps the greatest marketing coup since phillip morris and rj reynolds teamed up to create a "smokers' rights" grassroots movement.

link

If you are one of those naive Americans who bought a GM car recently, you may have been taken for a ride, literally, by the company. GM is in deep financial trouble facing strong competition not only from Japanese automakers but also from Korean companies like Kia Hyundai. Since it could not sell its cars, it came up with a “brilliant” idea - make potential customers believe that they are getting the same discount that a GM employee gets. “You pay what we pay,” is nothing but a marketing ploy to make you buy a car now.

The reality is very different. Research conducted by David Healy, an analyst at Burnham Securities, shows that prices after the so-called employee discounts are actually little different than prices without them. How can that be? Simply because of the complex pricing system for automobiles.

According to James R. Healey and Sharon Silke Carty of USA TODAY, GM’s employee price is what a dealer actually pays for a vehicle, about 4% less than the dealer’s invoice price. The invoice includes a profit, called holdback. To compensate dealers for selling vehicles at no profit, GM gives them 5% of the window-sticker price, an average of about $1,500 a vehicle. Dealers can use the 5% to give additional discounts. And some models have rebates that push prices even lower than employee discounts.

So if you are a smart shopper and can negotiate lower prices, you have nothing to gain or even might lose since now the prices are non-negotiable. But if you have no clue how to negotiate or are shy of negotiating, then you might consider buying a GM car. But if Chrysler and other automakers introduce similar incentives, you must start with the understanding that you are not really getting a deal of a lifetime; you are simply getting the same price but without the hassle of negotiating a lower price.”

“KIA = Killed In Action”

“Ditto what Phaedrus mentions.

Additionally, get your own financing from a bank, credit union or similar outside financial institution before car shopping. Dealerships add a few % points of markup to the interest rates they get from their contracted finance companies. Outside banks, credit unions, etc will give you a loan/interest rate based on your credit worthiness, while the dealership will mark up the interest rate depending on how much of a sucker they think you are.

Also, don't buy any extras at the dealership. As an example, they dealerships will mark up aftermarket wheels 100% to 150% above what you could get at a local tire shop. And they'll add the cost into the deal (and finance cost) making it even MORE expensive! For that amount, you can drop your car off at a tire shop, rent a car for the day, and STILL come out financially better!”

“I heard GM’s sales took like a 47% jump last month. One thing I learned is that using some banks for leasing sucks. I had to drive my Jeep an hour and a half to turn the thing in and then they went over it with a magnifying glass and binged me for every single blemish. They want the car to be show room floor perfect and you’ll pay if it’s not. Leasing through the dealer is much better because when you turn it in they want you to get another one from them so they will let everything slide.

funny how Ford made fun of GM for the sales gimmick and low and behold Ford's doing the same thing. LOL!”

“Many years ago a friend leased, I'm pretty sure it was a Ford Pinto. When he brought it back they wanted at least $2,000 from him for dings here and there. He was not happy. And I'm not sure the resale value of the car, even if it was in mint condition was $2,000, and he leased through the dealer.”

“GM is in deep financial trouble facing strong competition not only from Japanese automakers but also from Korean companies like Kia Hyundai.

That would explain the BS letter I got from my dealership saying my Kia Sorrento was a hot used car and wouldn't I kindly turn it in and buy a GM at employee prices. Say what?! Pa lease.

I wouldn't trade my Kia in for anything.”

“My reaction to the promotion was, "gee GM employees must not get that great a discount." Reading between the lines, it sounds like the employee discount isn't very different from the other discounts they offer from time to time.”

““My reaction to the promotion was, "gee GM employees must not get that great a discount." Reading between the lines, it sounds like the employee discount isn't very different from the other discounts they offer from time to time.”
pedxing
10:15:15 AM
7/11/05
ignore this user

Except they get that discount on top of the other discounts. My father bought a Pontiac a few years ago when GM had a deal going with International Paper. The IP employees got the same discount as GM employees. When he went to buy the car he was surprised that not only did he get the discount from work, but he also got all the other discounts that were offered through the dealership. I think he ended up getting close to $7000 off the sticker price.”

“Don't even get me started on this. Our Venture died on the way home from vacation 3 weeks ago so we were minivan shopping 2 weeks ago. Actually went to look at getting another Venture, and after 4 hours of them wasting my time we walked out. They still try to screw you in all the other usual ways, you just don't get to have fun negotiating the price on the vehicle. They claimed they couldn't get the Venture and up-sold us on an Uplander. Pun intended.

In the end we bought a 2-year-old Toyota Sienna for several thousand less than what the Uplander would have cost, and we are much happier with our choice. Our old Venture gave us another major problem 2 1/2 years ago (blown lower intake seal; coolant in the oil, very bad) and almost every gadget in the inside was broken. Piece of junk. Glad to be rid of it. Once my Saturn dies I'm done with GM vehicles for good.”

“Buy used!”

“I actaully got a great deal on a new jeep a few weeks ago, before the emplyee price thing. I just went into test drive one. Was going to get atoureg, but each time I tried to leave they'd come down on the price. after several hours of this it was dirt cheap.”

“"after several hours of this it was dirt cheap" -y2

Good thing it was a Jeep, then!”

“When buying a car together for the first time, many years ago, BowlderGal and I agreed that I would do most of the negotiating. So we went through the usual "OK, I'll go check with my manager" routine a couple of times, so we were already a little under the max we had concluded we would pay. So the guy comes back and says, "My manager says I can go with $x, and, geez, we're only fifty dollars apart now." BowlderGal finally jumps in and says, "Well, come on with the fifty bucks then!" The guy sheepishly agreed. If that wasn't funny enough, when we went to pick up the car, it had a big scratch on the bumper that they had to fix before they gave it to us - oops!”

“It makes me laugh, the games they play. The thing that got me is signing a piece of paper saying if the prices is right we'd consider taking the car today. They tried for about half an hour to get us to sign that one.”

“trick seems to be not to go there with any intention of buying”

“trick seems to be not to go there with any intention of buying”
Y2
11:03:43 AM
7/11/05

Pretty much. You're much better off shopping for a car when you dont HAVE to have one NOW. Be very willing to leave the dealership.”

“Question - Should a Dealership be entitled to make a profit ? Everybody wants the car basically at cost, with no mark up. How does the sales guy get paid ? the lot guy who washed the car, the electric bill, the title clerk who did the paper work ? oh, and lets not forget medical insurance.”

“Crazy - of course they should. I think it's just the games they play that makes it such BS. I mean seriously, the piece of paper they tried to make me sign was utter crap and meant nothing. Then why spend that time getting me to sign it. Just to get a committment from me. They could have gone and offered me "the best deal" without that piece of paper - and in the end they did.

Have a price for the vehicle, don't take the piss on the price of a trade in and people will go back there. Also don't try and scam them into buying stuff they don't need.”

“Hey CP. What UP!

I agree with you. I'm a Chevy Guy all the way and there are good salesman and bad. When I last ran into a bad one, I merely said,"send me someone who wants to sell a car, I'm done with you>".”

“Ford and some other company have jumped in with the employee pricing too. Many more options.....”

“y2, same thing happened to me. I actually had the dealership people run out to the parking lot to offer me a better deal as I was getting in my car to leave. The BS is super annoying. I think it's sad that their ploy is to wear down the customers by keeping them there for hours on end until they are tired and hungry. Very very sad.”

“I recently bought a Pontiac G6 under the "employee discount" program. I got a heck of a deal on the car, I payed below the invoice price, and they even gave me $1000 over the blue book value for my Civic. I think they actually ended up paying ME to buy the car.”

“pixie, that's what happened to us when we were being "sold" the Uplander. Four hours, our kids (3 & 5) were almost literally climbing the walls, we were starving, and we still hadn't been in to see the 2nd string of people where you sign the real paperwork. I told our sales guy "you have 5 minutes or I'm out of here". Ten minutes later he's still BSing in a corner with one of the managers, so my wife and I looked at each other and walked out. As we're getting in the car he runs out the door and actually gets mad that we're walking. All I said in return was "I told you 5 minutes, it's been 10. BYE (insert big wave from my right hand)."

I was out the door with our Sienna in 1 3/4 hour the next day at the Toyota dealer. And no "let me go ask my manager" bull$hit.”

“well he was seeing his commission check walk out the door. But good for you tech.”

“You can pretty much bet the farm that whatever price you negotiate, the dealer and the sales person are not taking a bath!”

“techntrek - I agree with you. It should take about 1hr or so to do paperwork once you have settled on which car you want. The only real difference between Dealerships are the procedures for the paperwork flow. As an employee, it takes me about 15 mins to just sign everything after I say "give me that one".”

“I don't know if the U.S. have this program...but in Canada, Toyota dealers in some provinces have the "Access program"....which essentially means every dealer is asking the same price for the same model of car. Similar to the Saturn policy. I guess the the only haggling will be on the "extra" stuff.

Makes everything simpler....one price across the board.”

“People would have less of a problem buying cars if more dealerships were honest about their pricing. There are a lot of unscrupulous dealers and salesmen out there.

Of course the dealership and the salesman are entitled to a profit, but when they have to get it by playing shell games with pricing, trade in values and add-on fees, it's not only annoying, but at times, exhorbitant. I personally would rather gnaw off an arm than try to reason with a car salesman, in general.”

“Touche', Phaeddy re the ethics (or lack therof) of car sales types. I'm trying to buy a car for my daughter right now... dealing with these guys is driving me to drink. (OK, so there IS a positive side!).”

“don't forget the undercoating. gotta have the undercoating.”

“I think leasing is good if you turn your car in every year or two. Yes, you have to pay for dings, so if you get any, you are screwed.

I sold Toyotas and Honda. The Accord and Camry are great! My Accord is 7 years old with 60,000+ miles and only needs oil changes and a timing belt which is expensive.

I always said I would consult my manager and walk away and never go in his office and come back and say he said I could go down just a little. It's all a big scam.

In regards to what Pha said about being honest, that's just another scam approach. They will say the car is priced at $500. above what the dealer pays and isn't that reasonable to make on a $16,000.00? Honestly pays off, because you think it sounds good but they should make more like $300 above what they pay if they are even quoting you the real amount of money they will make on the car.

You think you pay for the advertising, etc., well they also charge the salesperson. They call it the "pack" on the car and they deduct a certain % of money off what the percentage the saleperson makes since they say they have expenses like advertising, but they will tell you that you pay for it, so everyone pays for it, over and over and over.

Let's face it. It's all about supply and demand and that is what sets the price. That is why people paid me above the sticker price many years ago for Hondas. The boss said make the money while you can.

I bought my last Accord on the phone from NY in WA to where I was moving. I called my old manager and asked what the car cost and added on $300 and that is what I bought it for over cost. I still think the "cost" of the car may not be real, because there may be fees attached to it. The salesperson can even let you see the cost of the car, but the page could be doctored.

Aren't there sites online that tell you the cost of cars these days?

Tip: Yes, bargain, but I think it's best to buy cars from larger dealerships that need to sell more cars. You may bargain down a few hundred and the next dealership does the same for you, so you think you hit rock bottom, but it's just as low as dealerships go since they all know what each other sells their cars for, so there can still be a lot more room to go down in price.

Your local dealership may ask where you live. It makes them feel they have an advantage over you where you will want to buy close to home and just shop prices at dealerships farther away, and then they hit you with if you buy your car in your neighborhood and need it repaired, we will get you in quicker.

It may be a selling tool on your part to tell a salesperson that you live further away, so they realize you will travel for a lower price and if they don't give you one, you will go to your own neighborhood dealership.

Never go to a showroom for info of any kind because they will lie to you. I just checked out the Ultima and the salesperson said it has a great side impact reliability. I checked Consumers Guide and it said it had the worse side impact construction. It also said it had a wide turning radius.

Check out Consumer's Guide for info before you buy. At least if you can't afford the better cars out there, know what their defects may be and if they are things you can live with.

Pre-owned cars: You just don't know what you are getting. Many sales people's cars that they are given to use are sold as pre-owned and they drive them like crazy and over all kinds of crap. Yes, they can disconnect the odometer and it does also disconnect the speedometer on the salesperson's car, so you don't even know how many real miles are on it.

I would rather buy a privately pre-owned car. Look for things like tire wear which will cost you when you realize the tires are close to bald or if the car is due for a overhaul or certain maintenance things like the timing belt that will cost you.”

“TRADE IN SCAMS

If a dealer gives you more money for your trade in, it usually means they are making extra money on the new car they are selling. Sometimes they feel a person feels good to get a good amount of money for the trade in, so they give you more money and sell you the new car for more. People don't want to hear their old car is not worth a lot, so that is the psychology of giving your a little more and putting it back on the other end on the car you are buying.


I KNOW THE OWNER SCAM

Have no fear, no dealer loses money on a sale. Ugh, don't even say you know someone like the owner, because they will charge you even more since your defenses are completely down now thinking you are getting a good deal!!!!! These people pay the most money for a car.”

“when you have a trade in,it becomes two seperate deals and makes it harder to know if you are being ripped off-”

“Which is why you always talk trade-in first, then the price of the new car, then financing (if you don't already have it from your credit union).”

“Yes, they can disconnect the odometer and it does also disconnect the speedometer on the salesperson's car, so you don't even know how many real miles are on it.

Since the early 90's the transmission shifting is controled by speedometer imput.
Try and unplug the speedo connector and drive your car. It wont shift out of 1st gear. The speedo and odometer are the same imput. You cant disconect one without the other.”

“I know that's not the case on many cars Crazypace - I covered a court case at a VW dealer a few years ago where a secret switch had been fitted under a panel where they could turn the Odometer on and off.”

“I know we cant do it on ours (GM). Engineers have made it almost full proof. (unless your an engineer ofcourse).”

“consumer reports says to talk about price of new car and bring up the trade in later”