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Discussion Starter · #1 ·
If you get the employee discount (which seems to be about 10% in my case) who takes the hit, the manufacturer or the dealership.

Also should you still expect to "deal" on the price before the discount?

And finally, whatever special or incentive they are offering currently, should one expect to have the employee discount applied to that price, not the MSRP?

Any help is much appreciated....
 

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FAQ man
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-Both the mfr and the dealer take a hit... The dealer because he is forced to sell the vehicle at price set by the mfr, no haggling for him....and the mfr because they are selling the vehicle at a price below MSRP...but make no mistake they both still make money on that sale.

-From my experience there has never been any dealing. You get the vehicle at a certain percentage below MSRP.

-From what I have seen the employee discount is applied to the MSRP before any incentives are applied.

Jerry C.
 

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ford dealers on a " APLAN " get a fixed sales commission . they like it because there is no haggleing . and they know what they get upfront. when buying a new car / truck always try to get as much discounts and know when they come out . when i bought my 2004 f-350 with $5500 in discounts and A plan . I felt like i got a great deal. a good deal is a state of mind.
 

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When we bought fords (wife's Aunt and Uncle worked for Ford) we'd go into the dealership car shopping and they were really nice to us and helpful, then when we said we'd be using the whatever discount plan they suddenly turned into dickheads...good luck trying to get any floormats or mudguards thrown in for free.
 

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MTM said:
When we bought fords (wife's Aunt and Uncle worked for Ford) we'd go into the dealership car shopping and they were really nice to us and helpful, then when we said we'd be using the whatever discount plan they suddenly turned into dickheads...good luck trying to get any floormats or mudguards thrown in for free.
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70% of my new vehicle sales are GM Employee pricing. Our purchase satisfaction surveys and service satisfaction survey results are outstanding. Unfortunately, you encountered a lousy dealer. Sorry to hear it. Treatment like that make our entire industry look bad.

To answer the original question. The employee price is below the price GM and Ford charge their dealers, so yes, they take a little hit. The dealer recieves a fixed commission. Depending of the pricing competitiveness of their market, the fixed commission may be the same, lower, or slightly higher than their normal gross margin.

As for freebies. They are forbidden by GM sales policies and procedures. GM personnel audit the deals. If a dealer is caught, the dealer is chargedback the sales commission PLUS any factory incentives on that deal. In other words, a pretty big hit. Of course, you can still negotiate trade-in price if you have one. BTW, I've never lost a deal over a lousy set of floor mats.

Again, sorry for your lousy experience MTM.
 

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OK, some more info, if the truck I am looking at is currently having a promotion -

"get blah blah blah options for $37500" and the normal MSRP for the same truck and options would be say $39500.

Should I be trying to get the employee discount off of the lower advertised promotion price, or the regular MSRP on the truck? Hope this is making sense
 

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if it's gm ask them for the invoice it shows a GMS price make sure it's GMS not GM supplier if your a core family deal both are listed and some dealers use the term interchangably. My dealer loves the employee deals because we call over tell them what we want and come pick it up, no bullsh&% and we'll keep doing it as long as they are giving fair trade. I dropped 2 dealers who were trying to play with the trade in claiming they made no money, they make as good of money as any other sale these days.
 

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ih302 said:
sleddude5 said:
...but make no mistake they both still make money.
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GM lost almost 9 billion in 2005 so thats argueable.
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GM didn't lose because of the sale of there vehicle only.....they lost because they are not efficient in building the cars in the plants, and also includes all the golden handshake money, and buyouts, etc.
 
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