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Employee Pricing Primer
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How does it Work?
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Essentially, employee pricing sets a fixed, no-haggle price tag on a vehicle that is below the dealer’s invoice cost – the price the dealer paid for the car. However, in exchange for setting such a low price on the vehicle, Chrysler, Ford and GM have reduced the size of the rebates and incentives available on most models, and have boosted the dealer holdback a couple of percentage points to help the dealership recoup lost profits. The end result is that employee pricing is a terrific marketing strategy, but the actual transaction price of the vehicle isn’t much different from back in May, when smart negotiators could get the same exact deal.
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A D V E R T I S E M E N T
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