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Thread: Employee Discount?

  1. #16
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    The truck I was looking at is around $30,000 at employee price with rebate. That's a $8850 discount from sticker. About the same number I would have been able to buy at before the employee pricing.

    I've not heard of anyone haggling beyond the employee pricing. Couldn't haggle too much further really.
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  3. #17
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    Modeler wrote...
    "No, that's not the case. It's a fixed pre-determined price defined by the manufacturer minus all available incentives and rebates."

    That doesn't make sense.

    The dealer pays "X" for a car. (Dealer purchase cost)
    The dealer offers it for sale at "Y" (MSRP)
    I offer them an amount somewhere in between. "Z"

    We agree on "Z" and THEN take the discount off of that price.

    If the discount only applies to full MSRP then it's hardly a significant discount. I could see if the employee discount was a percentage off of the purchase price.

    If it as you Skinny2 say, and it may very well be, then the dealer is the real winner here. And people that can't haggle.

    DD
    Last edited by DannyD; 07-18-2005 at 03:18 PM.

  4. #18
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    Originally posted by DannyD
    Modeler wrote...
    "No, that's not the case. It's a fixed pre-determined price defined by the manufacturer minus all available incentives and rebates."

    That doesn't make sense.

    The dealer pays "X" for a car. (Dealer purchase cost)
    The dealer offers it for sale at "Y" (MSRP)
    I offer them an amount somewhere in between. "Z"

    We agree on "Z" and THEN take the discount off of that price.

    If the discount only applies to full MSRP then it's hardly a significant discount. I could see if the employee discount was a percentage off of the purchase price.

    If it as you Skinny2 say, and it may very well be, then the dealer is the real winner here. And people that can't haggle.

    DD
    Look, it's really simple: there is no employee discount for GM, Ford and DC cars. What exist is employee price , which typicaly ranges from 2-3% under dealer invoice to 1-2% over dealer invoice. If there's a dealer incentive and/or rebate on the car, you get that too. Clear now?

    The dealer gets reimbursed by the manufacturer for selling at the employee price. How much nobody knows. Not all dealers participate in the employee purchase programs, which would indicate that the renumeration is not that good.

  5. #19
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    Ok, here's how it works. GM is paying the dealers 5% of MSRP, which includes their traditional 3% holdback.

    Dealers don't normally pay for cars quite like described above, so "invoice price" isn't quite an accurate term and usually isn't really what they pay. They get their hold-back less floor-planning costs, plus whatever profit they managed to negotiate into the sale on the front-end. Here's an example I found for a Cadillac SRX-V6:

    Sticker price: $43,980

    Dealer pays: $39,634.10 (true cost)

    Employee price: $39,709.10

    GM holdback payment: $2,124

    Actual "invoice" per edmunds: $40,019.

    According to this, you have $75 to negotiate unless you find a dealer willing to dip into that hold-back check. And if they do, how much do you think it will be? $2,000 profit at a Cadillac dealer is very thin. Multiple 5% by a $35,000 vehicle and you're down to $1750 before any floorplanning costs.

    From what I've gathered, dealers are claiming to be making less per vehicle with this program, but obviously selling more. Overall not much of a difference. Some dealers say they're losing money, some say it's breaking even. Some are not participating in the program.

    It's clear that GM isn't taking a huge hit on this program though. Their incentive costs were only up $136/vehicle last month.
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  6. #20
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    Originally posted by egads
    Dealer employees are not Honda Corp. employees. To get a discount (if any) you would have to build them, work for their corp offices, or in R&D. Someone who posts on here lives in Alabama and has a friend who works in the plant. Maybe he will see this thread and find out.
    The Honda Corp Price is actually below dealer cost. Take dealer cost subtract holdbacks, floor assistance, incentives, etc... and you get Honda Employee cost. The hold back is that if you go though the Employee Purchase plan you need to wait to have the car build and you get you're own financing.

  7. #21
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    Employee discount

    I just bought an EX-L RES with splashguards for 29,515 last week. I am not an employee. Ocean mist

    I did shop via email a 200 mile radius. I simply showed the others the price and then they would fight to beat it. If you can shop for a few weeks, this is the way to do it.

    I ended up buying local at this price. So I didn't have to travel.

  8. #22
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    Modeler,

    Of course it's simple, all new car transactions are simple!

    I guess it's just another "If it sounds to good to be true..." kinda things.

    Your logic still leaves an amount the dealer can bargin with. Dealers are not losing money & I'd be real surprised if the discount is coming out of their pocket.

    I'm confident that some dealers will offer further discount if they want to move a particular vehicle. There is a discussion going on the Edmunds fourm that seems to back this up.

    I guess the big winner is people shopping for a Saturn which I think still won't haggle on price. To bad I don't think I'd feel like a winner driving a Saturn.

    DD

  9. #23
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    Originally posted by DannyD
    Modeler,

    Of course it's simple, all new car transactions are simple!

    I guess it's just another "If it sounds to good to be true..." kinda things.

    Your logic still leaves an amount the dealer can bargin with. Dealers are not losing money & I'd be real surprised if the discount is coming out of their pocket.

    I'm confident that some dealers will offer further discount if they want to move a particular vehicle. There is a discussion going on the Edmunds fourm that seems to back this up.

    I guess the big winner is people shopping for a Saturn which I think still won't haggle on price. To bad I don't think I'd feel like a winner driving a Saturn.

    DD
    Danny, did you even read my post? I'm not providing any argument using any "logic", I'm merely describing the facts of the programs to you. There's nothing "too good to be true" about these programs, they're just Ok (although they're great for people who can't bargain).

    Again, it's very simple: there is no "discount" there is just a pre-defined employee price for every vehicle. And, no, the dealer will not further reduce this price.

    If you don't believe me, read this descriptions of the Ford program from fordpartner.com:


    Obtaining a Vehicle

    Each time you wish to participate in the Plan you will need to obtain an approval prior to the purchase. For each approval you will need to generate a new Personal Identification Number (PIN). To request a PIN, go the "Generate a PIN" tab from www.fordpartner.com . To learn more about PINs, see the "What is a PIN?" section.

    NOTE: Each PIN is valid only for a single purchase or lease and may be used solely in the U.S. Once the PIN is generated, only the assigned individual on the PIN is authorized to purchase an eligible vehicle. PINs expire, if not used, one year from generation.

    Immediately identify yourself to the dealer as an X Plan Partner Recognition Program eligible customer.

    Give the dealer only the last four digits of your Social Security Number (SSN) and your seven digit Personal Identification Number (PIN). (This combination is your New Vehicle Purchase Plan ID number).

    The dealer will enter your Purchase Plan ID into the computer to verify your eligibility. Once your eligibility has been verified, the dealer can lock in the approval to complete the transaction. (If you decide not to complete the transaction at that dealership, ask the dealer to cancel the locked-in approval so that you can use it elsewhere.)

    Your dealer is required to collect appropriate proof of identity from you prior to the sale. Please see, Appropriate X Plan Use for further details

    Ask for a copy of the vehicle invoice which shows the "X" plan price in the box labeled "X Plan" located in the lower right hand corner (lower left for Volvo- not displayed for Jaguar or Land Rover). This is always the correct "X" plan price.

    NOTE: Mazda is not included in Ford's "X" Plan; Mazda vehicles may be purchased under Mazda's "S" Plan.

    The dealer will complete and ask you to sign the New Vehicle Purchase Plan/Red Carpet Lease Option Customer/Dealer Agreement and Pricing Sheet*. After you have signed it, the dealer will provide you with a copy. This is your assurance that the price charged is the correct price. Do not sign this form if it is blank or if you do not understand how the price was calculated. If you have any questions or concerns about the terms of your purchase or lease, ask your dealer for clarification before closing the transaction.

    *See the "FORMS" Section for a copy of this document. This document is not provided for Jaguar or Land Rover vehicles.


    Here's what GM Supplier program (similar to employee program) offers:


    What is the vehicle discount?
    Each dealer invoice lists a GM Supplier Discount price, which is the special price you, as an eligible Supplier Company employee, pay for that vehicle. For Saab pricing please see your local participating Saab dealer. Saab provides a GM program/supplier price list that you may request by calling Saab's Customer Assistance Center at 1-800-955-9007. You may also ask your sales representative to show you a copy of the dealer invoice. You can then compare your cost to the Manufacturer's Suggested Retail Price to calculate your discount.

  10. #24
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    So, in lieu of Employee pricing plan, if I am good at haggling, would there still be a chance of getting the price lower than employee price?

    If yes, then what's the deal with all the excitement of employee pricing plan? People just can't haggle anymore ?
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  11. #25
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    Originally posted by jono
    So, in lieu of Employee pricing plan, if I am good at haggling, would there still be a chance of getting the price lower than employee price?

    If yes, then what's the deal with all the excitement of employee pricing plan? People just can't haggle anymore ?
    "People" never could haggle! Just look at Edmunds True Market Value (TMV) for a few vehicles that are in reasonably high demand and you'll see that the average Joe pays thousands of dollars more than the best shoppers on this forum!

    So average Joe just loves the employee discount because not only does he not have to haggle, he perceives this price to be better than anything he could get even if he were the best negotiator in the world. Which is simply not always true (though it is true most of the time).

    In some cases people can get better prices than offered under the employee purchase programs, but these deals typically involve some special circumstances: vehicle that's been sitting on the lot for many months, dealer willing to sell at a small loss just to make the quota for the qurter or year, etc.

  12. #26
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    Originally posted by wm008
    The Honda Corp Price is actually below dealer cost. Take dealer cost subtract holdbacks, floor assistance, incentives, etc... and you get Honda Employee cost. The hold back is that if you go though the Employee Purchase plan you need to wait to have the car build and you get you're own financing.
    I believe there's a limit of 1 purchase per year and transferable to immediate family only.

    It covers Acura as well but not sure about motorcycle and other marine products.
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  13. #27
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    Modeler,

    Pardon me for presuming you use logic. Didn't mean to get your panties in a wad there skippy.

    If a good is being offered for less than retail it is being offered at a discount, it's pretty simple.

    The dealer will still make money off the deal after the dealer comensates them for the . If they are willing to make less they can discount further.

    DD

  14. #28
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    Originally posted by DannyD
    Modeler,

    Pardon me for presuming you use logic. Didn't mean to get your panties in a wad there skippy.
    No need to be an a-hole! I've tried to explain something elementary to you, yet you keep bringing up some baseless assumptions and ignore the facts.

    If a good is being offered for less than retail it is being offered at a discount, it's pretty simple.

    The dealer will still make money off the deal after the dealer comensates them for the . If they are willing to make less they can discount further.

    DD
    Assumption is the mother of all f@ckups! You don't know what dealers are allowed to do under their contract with manufacturers! What you say may or may not be true, but the point is that
    it is pure speculation on your part.

  15. #29
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    Originally posted by lelandstanford
    I believe there's a limit of 1 purchase per year and transferable to immediate family only.

    It covers Acura as well but not sure about motorcycle and other marine products.
    The program is structured to 1 car every 6 months and direct family memeber are eligable also . There is also a lease program with very goods terms (incl. insurance etc..)
    As far as other products (motorcycles, watercraft, lawn mowevers, etc.) these are also available at reduced prices.

  16. #30
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    Re: Re: Employee Discount?

    Originally posted by GoodSonOdy
    I got my EX-L at employee price in Feb.

    Because you work at Honda

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