Employee Pricing: Fact or Fiction?

You’ve probably seen the ads on TV. But is employee pricing really a good deal?

What is employee pricing?

Employee pricing, or sometimes referred to as invoice pricing among other naming conventions, offers a typically non-negotiable “invoice price” that reduces the MSRP (Manufacturer’s Suggested Retail Price) down to a point where the dealer is no longer making a profit margin. Sounds like a pretty sweet deal, right?

People usually want the rock-bottom price when spending big on a new car, but there are both pros and cons of employee pricing. Let’s walk through the different employee price discount offers and discuss if it’s really a promotion you should be taking advantage of. 

Here’s a breakdown of some of the main proponents of employee price discounts.

Ford Employee Pricing

Ford claims its employee pricing offer ensures you pay the same price that a Ford employee pays. The iconic auto company has been offering this promotion for 15 years, but it’s not a year-long incentive, so you’ll have to keep watch when it’s next available (usually in the summer). An example of Ford Employee Pricing would be a 2020 F-150 MSRP of $67,799 with an “invoice price” of $61,799 (what the dealer pays). With FEP, you might get 2% off the invoice price, providing over $7,000 in savings off the regular price.

GM Preferred Pricing 

General Motors (GM) offers the Preferred Pricing program to employees of select partner companies, allowing them to purchase or lease eligible new Chevrolet, Buick, or GMC vehicles at 2% over the dealer price. This program can be combined with other offers such as Student Bonus, GM Card allowances, cash credits, and special financing rates. Eligible employees may purchase up to two new vehicles per calendar year under this program. To participate, employees must provide a valid authorization code and proof of employment, such as a recent pay stub or a letter from their Human Resources department. Vehicles must be registered in the employee's or their spouse's name for personal use and retained for at least six months and 12,000 km.

Chevrolet Preferred Pricing

As part of GM's Preferred Pricing program, Chevrolet offers eligible employees of partner companies the opportunity to purchase or lease new vehicles at a preferred price. This includes most Chevrolet cars, SUVs, crossovers, and trucks, though some models or trims may have limited availability. Employees can combine this pricing with other incentives, such as the Canadian Forces Appreciation Discount, Mobility Program, and Student Bonus. To verify eligibility, employees should contact their local participating dealer and provide the necessary documentation, including a valid authorization code and proof of employment.

FCA Employee Pricing Plus

Fiat Chrysler Automobiles (FCA), which includes popular brands like Dodge and Jeep, offers employee pricing discounts to eligible employees of affiliate companies similar to GM’s Preferred Pricing model. However, Employee Pricing Plus extends the availability of this deal so that all car buyers can essentially enjoy the discount. Employee pricing for a Dodge Ram for example can range to 5% below the dealer invoice price, plus a fee.

Hyundai Invoice Pricing 

The Korean auto giant doesn’t bother making their offer sound exclusive to employees. Hyundai will often advertise invoice pricing, which is essentially the same as employee pricing, giving you the same price the dealership supposedly pays for the car. 

Is employee pricing right for you? 

For better or for worse, employee pricing removes haggling from the buying experience. That will suit many customers just fine, as negotiating a lower price at a dealership is a daunting part of the car-buying process. But these promotions are only available at certain times of the year and for certain brands.

If you’re still undecided, here’s a more complete breakdown of the pros and cons of employee pricing.

Pros of employee pricing 

• If you’re a fan of the car manufacturer that is offering the promotion (Ford, GM, etc.), employee price discounts are definitely worth exploring.
• If the prospect of haggling or negotiating gives you a headache, employee pricing might alleviate that stress because you won’t feel compelled to bargain for a better price. 
• If your workplace is affiliated with an employee pricing program it could make the buying process more simple and streamlined. 
• It is sometimes possible to combine or “stack” an employee pricing incentive with other offers, such as low-interest financing.

Cons of employee pricing 

• Employee pricing is not offered by all manufacturers and does not cover all models, so the car you have your eye on may not be included in the offer.
• It is generally only available for the purchase of brand new cars, meaning you might need to spend more than you were hoping. 
• If you’re good at bargain hunting and striking deals, you might be able to lock down a better deal for yourself without employee pricing.
• Employee pricing is typically only available in the summer to make way for next year’s models. It means that you’d have to wait for the right time of year to take advantage of this discount. It also means that there’s a newer version of your brand new vehicle about to be released. 

How to get a great deal (without employee pricing)

Employee price discounts may only be available in summer, but there are plenty of other ways to find the right car at the right price. Follow these tips to ensure you find the best possible deal all year round.

1. Research the right car for you: Before you jump at the biggest discount you can find, first decide what kind of vehicle you need. Are you looking for a family-size model or a compact commuter car? Does it need to be rugged and winter ready or do you have your eye on a slick convertible? There are numerous attractive offers out there, but just because it might look like a great discount, doesn’t necessarily mean that it’s the best deal for you. Take some time to research the different types of vehicles available.

2. Get pre-approved: Getting pre-approved will streamline your car-shopping experience. With a pre-approval in your back pocket, you’ll know exactly what you're eligible for so you can narrow down your search to a specific price range. Canada Drives can help you get pre-approved online in a matter of hours and it only takes two minutes to apply.

3. Consider shopping pre-owned: While employee pricing is confined to brand new vehicles, it pays to remember that dealerships sell used cars too and there’s fantastic deals to be found in this market. The benefit of buying a used car from a dealership or online retailer is that you know the car has been professionally inspected and serviced. Furthermore, car dealers and online vendors rely on repeat business, referrals, and online reviews. Therefore, you can be confident that you’re getting a reliable vehicle. Typically, you won’t enjoy the same value for money with a brand new car, or the same peace of mind when you buy a used car in a private sale.

4. Pick your moment: Employee pricing events generally kick off in the late summer months alongside other promotional offers to clear lots and make space for next year’s models. But there are other opportune times to snag a deal, such as: 

1. Towards the end of the year. 
2. Towards the end of every month. 
3. During slower days at the dealership (i.e. weekdays)
4. During the off-season for your vehicle type (i.e. shop for convertibles in October)

Read more about the best times to buy a car here. 

5. Focus on raising your credit score: Traditionally, a good credit rating is your golden ticket when it comes to accessing the most attractive new car sale promotions. For example, 0% financing is typically reserved for customers with the best credit scores. Today, companies like Canada Drives can help you get approved for great deals regardless of credit. But in the long run, it makes good financial sense to work towards improving your credit score. Fortunately, any car loan you get approved for today can help you start building credit for tomorrow.

More things to know about employee pricing programs

Employee pricing programs often vary depending on the brand, dealership, and specific program period. For example, GM’s Preferred Pricing—available on eligible new Chevrolet, Buick, and GMC vehicles—allows qualified retail customers and their eligible family members to receive preferred pricing on selected vehicles. You’ll need a valid authorization code, proof of active employment, and in some cases, a recent pay stub from your Human Resources department.

Other factors that may impact pricing include approved credit, dealer trade availability, extra charge items like new tires or speed rating upgrades, and whether your purchase is a factory order or from the dealer’s inventory. If you're trading in a vehicle or leasing instead of buying, monthly payments and purchasing options may also vary.

Always confirm details with your local participating dealer, especially around vehicle eligibility, dealer-installed options, and whether general motors protection plans or other fees apply. And don’t forget: some programs are only available to salaried staff or active hourly employees and may exclude temporary employees or those who recently bought another vehicle through the program.

Shop confidently with Canada Drives

Canada Drives can connect you with lots of great car deals without the dealer fees. Get pre-approved today or shop hundreds of certified vehicles online. Get started!