Employee Pricing

[tealboy]

I see chrysler is going back to employee pricing based on bloated inventories. I was reading some reports today and all three domestics are running well over 100 days supply on large sport utilities and trucks. Even the ford f150 was close to 150 days supply vs. a target of appx 60. All of them had too much inventory. Speculation is, GM and Ford may not jump to the employee discounting to match chrysler, but the pressure may force it to happen. Sales are really slow right now, except for toyota. Interestingly, the toyota supply figures were appx 45 days, so this enables them to maintain a good balance between supply and demand, minimizing the need for rebates and discounting.

 

I have shifted back toward chevy's tahoe or sub z71 from the sequoia, but am waiting to see what will happen with the discounts. I'm not real interested in dropping $40k or more on a 4x4 that gets 15 mpg unless i get a good price.

[pm26]

It has been my experience that the employee pricing gimmick is nothing but crap. Let me explain. Before GM came up with the employee pricing deal several years ago, you could actually buy a new Chevy truck cheaper that during the employee price campaign. The reason is simple. They sharply reduced the rebates with the employee price deal so the bottom line was not exceptional. What is exceptional though is that as soon as the employee price sale was announced people were buying these trucks like crazy, even though they actually could have bought them cheaper before the sale! Nothing like mass hysteria started with a gimmick like this.

 

Same for Chrysler. I priced a Dodge 2500 Cummins diesel quad cab 4X4 pickup with Thunderroad package and 6 speed manual during the employee pricing sale. It was about $ 35 k plus taxes. Just last week I looked at almost identical '06 pickup, except with an auto transmission (about $ 1000 more on the sticker) and it was sale priced at $ 31K. So considering additional $ 1k worht of equipment, actually $ 5k cheaper than during the employee price sale. This is becuase right now the rebates and dealer incentives are much higher.

 

So forget the employee pricing gimmick - it is designed to fool those who do not do their homework prior to purchase.

[RobDarden]

Employee pricing is okay. I bought mine with Supplier pricing and rebates. Sticker $36k, I paid $27k after taxes and fees.

[tealboy]

actually, i disagree. I am not one for gimmicks and can certainly figure out the difference, though i don't dispute your findings. there are many variables that can come into play but widely speaking, the manufacturer's employee pricing will generally be the best price you can possibly get on a new unit. The part that was not so good was when the manufacturer dropped the employee pricing, but individual dealers began offers employee pricing. This is very different than the incentive offered by the manufacturer, an not nearly as good.

 

most of the prices on z71 sub i have looked at are $10k off sticker between rebates and dealers going to invoice. With manufacturer employee pricing, that discount increases to almost 13k off.

[Wingnut]

I've ALWAYS been able to haggle below the "employee" price.

 

I did it on my current truck.

 

I also got more than KBB value on both my trades...Heck my '92 is still sitting at the dealership, and they've got it advertised more than $1000 under what they gave me for it.

 

This is why I went ahead and bought it...They gave me over KBB for my trades AND they went below the employee price (all I had was a supplier cert). Plus, it's a badass truck

 

I still have zero doubt they made good money off of me.

[Mark_in_Tulsa]

I've ALWAYS been able to haggle below the "employee" price.

 

I did it on my current truck.

 

I also got more than KBB value on both my trades...Heck my '92 is still sitting at the dealership, and they've got it advertised more than $1000 under what they gave me for it.

 

This is why I went ahead and bought it...They gave me over KBB for my trades AND they went below the employee price (all I had was a supplier cert). Plus, it's a badass truck

 

I still have zero doubt they made good money off of me.

 

<{POST_SNAPBACK}>

 

 

 

 

I'd be more impressed if you bought back your old truck from the dealer at a lower price than you sold it.

[Wingnut]

Believe me...I've thought about it.

 

I called them and asked if they would throw in a warranty, and they told me no

[pm26]

When they introduce employee pricing, they generally lower the rebates. You will not come out ahead. Employee price is something like $ 1200 below the actual invoice. So if there is $ 4k rebate and you buy a truck at invoice, or there is $ 2K rebate and you get the employee price, which is the better deal? It does not take a genius to figure this one out. I have priced trucks before and during employee price sale and the employee price sale was by far the worst deal. I have no idea where you people shopped for your vehicles, but these are the facts.

[tealboy]

$13k below sticker is pretty easy to measure. if one is $10k below sticker and employee is $13k, I think i can figure out which deal is better, regardless of what they call the program. Right now, $5k on the rebate and $5k off of sticker (invoice) is pretty simple math. That's $10 grand. So far, they have not offered a better deal on 06 units, unless you can buy it for less than invoice.

[Beer Belly]

Any idea if you can combine rebates and trade in incentives with Supplier Discount ?

[Wingnut]

Any idea if you can combine rebates and trade in incentives with Supplier Discount ?

 

<{POST_SNAPBACK}>

 

 

 

I think that's up to the dealer. They're not even required to honor the supplier discount if they don't want.

[tealboy]

PM was right with regard to rebates go down when the employee discount comes out, so combining them doesn't really fit. At the end of the day, the employee discount is the substitue for the rebates. The employee discount essentially is a rebate, it just has a different name and is of a greater amt than average historical rebates.

 

by the way, the dealers like the employee discount b/c it moves units. Dealers end up hitting "unit" buckets which qualifies them for money back from the manufacturer, they get holdback money and they collect their "fixed dealer fee", not to mention it brings their inventory levels down to more efficient levels which reduces floor plan costs/interest expense.

[2004GMC1500CC]

Any idea if you can combine rebates and trade in incentives with Supplier Discount ?

 

<{POST_SNAPBACK}>

 

 

 

When I bought my 04 I used supplier pricing, all rebates as well as $1000 in dealer coupons.

[Shawn T]

I wish I could deal like you guys are talking. Take a good look at my truck. Loaded to the gills and in immaculate shape. 50K miles. High trade in is $27,000. I went to the biggest Chevrolet Dealer in Utah (Gus Paulos). I was looking to trade up and use the $1500 GM loyalty cash and and the $1500 down payment assistance for the DMax. They had the truck I wanted, loaded up LT3 D/A combo, DVD, G80, LBZ, etc. Sticker price, as of Feb 1 2006 is $48,500. They said Chevrolet made a drastic price adjustment then @ about $4000. Long story short... With the incentive cash they came down to $44,000 and some change. They offered me $27,100 for my truck (they had an identical truck on the lot with 45,000 miles for sale @ $32,999). The difference between the trucks was $17,000. It almost made me puke. I bluffed them down twice and finally the finance manager told me I was ringing him out, but ultimately this was there final deal. They let me walk away. I have to say, that the invoice was miles below there asking price without the dealer incentives. I told them I would spread the word about how they would not deal. There response was pretty much "we can sell Dmaxes faster than they can get them dealer prepped. They let me walk away with that taste in my mouth! So without incentives, my truck is $20,000 difference than a new one? Like I said, you cannot load up an 06 with anymore options that mine has except a sunroof, which was not available in 03. I think I can make me a stouter DMax than an LBZ for 20 grand.

[pm26]

D-Max trucks are not discounted nearly as much as gas engine trucks. My neighbor traded in his '04 Z71 EC with 35K miles recently on a new Ford and they gave him $ 25k for his. Based on this, your truck should be worth more than $ 27K, especially if they are not discounting the new D-Max trucks too much.