If the additional discounts aren’t used, then the dealer gets them as a profit. The additional savings comes via further incentives provided to the dealer from the manufacturer in order to sell their cars. You’re past the tip, but there are still more savings to be had. If you do a little research online and utilize resources like Truecar, then you’ll soon find out that the dealer’s invoice price is typically about halfway down the iceberg. RELATED: Right Now Might Not Be The Time To Buy A Used Car There are more discounts to be had However, with the power of the Internet, anyone will be able to find out pretty quickly that almost any dealership can do much better than just the invoice pricing.Ī man inspects new Toyota cars on display | Justin Sullivan/Getty Images That’s not to say that it’s a scam, in fact, it’s technically not because they are offering you a pretty good discount. We say this because in the dealership world, “employee pricing” means that you get the pay the invoice price, or the price that the dealership allegedly pays for the car. The good news is that they are real, the bad news is that they are not as deep of a discount as you think. You may have seen the commercials on television advertising employee pricing discounts on cars from automakers like General Motors, Ford, and Hyundai and wondered if the savings are real. Admittedly, getting “employee pricing” is a perk when you work for an automotive manufacturer, but are consumers really getting the same discounts as the actual employees? What is the employee pricing discount? Luckily, automakers will generally have sales from time to time that advertise your ability to buy a car at the employee-discounted rate. But having to negotiate to get a good price can be a hassle.
When it comes to car shopping, everyone wants a discount off the advertised price.