What is the gest deal; invoice price, supplier pricing or employee pricing?

[KenD245]

I though I got a good deal when I purchased my 2009 CTS at invoice price. The MSRP on my car was $48,950 and the invoice price was $45,737. The invoice price included total advertising fees of $1083.94. There was no dealer fee added to the invoice price.

Would I have done better if I took advantage of supplier pricing?

Would I have done still better if I was able to get it at employee pricing.

Perhaps someone can explain what the differences are.

[lordbaby]

obviously employee price is the best
invoice and supplier price is about the same, normally supplier price is better. There is circumstance when you can further negotiate the invoice price, then it will be better then supplier.
When there are incentives available, you could get close to employee price with some negotiations.
But you are talking a lot of off when it comes to employee discount on this particular car.

[KenD245]

Thanks for your comments, but can you be more specific and provide some numbers?

[carman5200]

My car: MSRP: $49,300, I got employee pricing: $43,500 (approx.)

[928S]

Based on what I've previously read on this forum . . .

Vehicles prices in descending order:
1. MSRP (irrelevant, a.k.a. sucker price)
2. SUPPLIER (~1.5% above invoice)
3. INVOICE (no advertising or other fees added)
4. EMPLOYEE (~3% below invoice)

So, KenD245, you paid ~$400 above supplier price.

[louiefl99]

Employee pricing (GMS) is 3% below invoice and supplier pricing (GMU) is 1.5% above invoice. Advertising fees are not added to these numbers. Based on your invoice of $45,737 and in order of increasing cost: employee = $44,365 < invoice / no adv fee = $45,737 < supplier = $46423 < invoice w/ adv fee = $46821. The range is about $2,456, but supplier / employee pricing is not available to all, nor do they work with all GM card money. I paid supplier w/out adv fee but couldn't use $1K GM Card cash and felt I got a good deal. Would I have been happier if I paid less? Sure, but I have no regrets where I ended up (probably would have paid more!). (Edit: looks like 928S beat me to the punch)

[KenD245]

Thanks for all your input. As I said I paid invoice price which included $1083 of advertising costs.

Did I understand you correctly to say that if a dealer sells it to you at supplier pricing that you do not get charged the $1083 for advertising cost?

Also is it correct to say that if you go to a dealer and you qualify for employee pricing that the dealer cannot charge to the $1083 for advertising costs?

[doncrystalred]

Originally Posted by louiefl99

Employee pricing (GMS) is 3% below invoice and supplier pricing (GMU) is 1.5% above invoice. Advertising fees are not added to these numbers. Based on your invoice of $45,737 and in order of increasing cost: employee = $44,365 < invoice / no adv fee = $45,737 < supplier = $46423 < invoice w/ adv fee = $46821. The range is about $2,456, but supplier / employee pricing is not available to all, nor do they work with all GM card money. I paid supplier w/out adv fee but couldn't use $1K GM Card cash and felt I got a good deal. Would I have been happier if I paid less? Sure, but I have no regrets where I ended up (probably would have paid more!). (Edit: looks like 928S beat me to the punch)

Just one more thing...GM employee price has a max of $75.00 on the doc fee.

[928S]

Originally Posted by KenD245

Did I understand you correctly to say that if a dealer sells it to you at supplier pricing that you do not get charged the $1083 for advertising cost?

Also is it correct to say that if you go to a dealer and you qualify for employee pricing that the dealer cannot charge to the $1083 for advertising costs?

Yes, you correctly understand supplier and employee pricing.

As far as I'm concerned, GM's voluntary co-op advertising scheme is just another way for GM and some of its dealers to extract more money from unwary buyers, and to share the additional mark-up. Good for them...but I say, "no thanks." Never a problem finding a non-participating dealer eager to compete for my business.

[lordbaby]

From what I compare here in this forum, seem like the ad's fees are different at every dealership when i compare them to mine

[smithb]

No longer relevant, but interesting trivia is the employee price used to be divided between GMS and GMO. GMS, where I believe the "S" stood for "stock", was when you bought a car out of dealer inventory. GMO, where I think "O" stood for "order", was when you just went to the dealer and ordered the exact car you wanted, but paid a couple percent less than GMS. When you buy a car at GMS, you get it below what the dealer pays, but GM gives them back about 5% so they don't lose money (and make a little bit). GMS cost more than GMO because the dealer got more money back to pay for advertising and the other associated costs of carrying inventory. I never understood why someone would buy GMS instead of ordering a car exactly like they wanted and at a cheaper price for just a couple weeks or a month wait. So, for that reason (to move more in stock cars), GM got rid of GMO probably about 10 years ago now (but I don't remember exactly when). The ironic thing (per this thread) is you actually do pay advertising fees with GMS, but it is still cheaper than you can get anywhere else. Otherwise it would be GMO price. All rebates and incentives apply to GMS. Regular GM card money does not apply, but usually GM Family First credit card money does work, however I've heard there are some limitations, but I have never run into them. I used $500 GMFF money on my CTS at GMS and 0% financing.