With all the employee pricing being hyped and advertised on the media I thoughtI would write a short article on thesubject. I have also gotten a lot of questions in emails about the subject.

Here's the deal: Employee pricing is the lowest price you willever be able to purchase a vehicle for period.

Employee pricing is usually several hundred dollars belowinvoice.

So how is the auto dealer making any money selling at employeepricing?

It's simple... They are reimbursed from the auto manufacture. For example General Motors gives $1500 to the dealer for everycar sold at employee pricing.

When you combine employee pricing with the rebates your gettingthe very best deal possible.

Obviously the dealer is still going to try and up his profitmargin in several other ways.

If you are trying to trade in a vehicle then the dealership isgoing to try and offer you even less than he normally would.

Because of employee pricing everyone and their brother isbuying a new car right now and the dealerships are stuffed withused car inventory. Therefore unless they can "steal" yourtrade they are really not that interested in taking in anotherused car in their inventory.

If you want to buy a car at employee pricing then this would bethe best time to try and sell your trade in vehicle yourselfand save yourself the headache of muddying the water with youremployee price purchase.

The other question I get asked a lot lately is, "How do I knowI am getting the actual employee pricing?"

They are doing national advertising for employee pricing and itis coming from the auto manufacture. When the actual auto manufactures come out with an incentive program the dealersmust adhere to it! If they tried to be dishonest and sell youthe car you want above the employee pricing they would bein extreme hot water with the manufacture, could lose theirfranchise, and get sued.

Therefore you don't have to worry about not getting the actualemployee price if it is advertised. The only time the numberscan get skewed is when you throw in your trade vehicle whichyou owe money on. Again, this is why I encourage you to sellyour vehicle yourself.

Last but not least, just because there are great deals atemployee pricing does not mean you should go out and buy a newcar. If you can't afford the car or the payments then it doesnot matter how good a deal you got.

You're still putting yourself in financial hardship. Thinkbefore you buy!

Peter Humleker is a former General Manager of an Auto Dealership and a Consumer Advocate.He is the author of Auto Dealer Executive Breaks"Code of Silence!" http://www.CarBuyingScams.com