Car Pricing: Employee/Invoice Pricing Deals

Employee or Invoice Pricing Deals

Sometimes car manufacturers offer special discounts known as employee or invoice pricing deals, which reduces the MSRP to the dealer invoice price, which is what the dealer pays for a vehicle. So far, the only brands to offer such deals are Ford, General Motors and Hyundai.

While Ford and GM call them “employee pricing deals,” Hyundai refers to them as “invoice pricing deals.” The purpose of both is virtually the same – to bring the MSRP down to the (perceived) dealer cost – but there are several notable differences.

An employee pricing deal is the actual dealer invoice price, which means that it is the lowest offer a customer can possibly get, with absolutely no room for further negotiations.

An invoice pricing deal, on the other hand, works more like a stackable cash incentive, with the amount being the difference between the MSRP and dealer invoice price. This means that it lowers the price to what is advertised to be the dealer cost as opposed to the dealer cost, leaving room for further negotiations. As a result, it is sometimes possible to combine or “stack” this incentive with another one, such as zero-per-cent financing, though such deals are not openly advertised.

The general consensus among the auto industry experts is that these types of initiatives allow consumers to perceive automakers and dealerships as more trustworthy, because they reveal the supposed actual price of a vehicle.

For more information on car pricing and incentives, be sure to consult Unhaggle’s free dealer cost report or contact our customer service team, if there are any additional questions.