Do automakers' employees get a bigger discount when the public is offered "employee pricing"?
heard the auto dealers don't make their main profits from car sales. Instead, they make them from the add-ons that come up when you're done with the salesman and are working with the finance person. These add-on's include, rustproofing, paint protection, interior stain proofing, gap insurance, extended warranty, etc. Just like McDonald's doesn't make their money from burgers-- but from soda and french fries instead.
So, it may be that dealers can viably afford to sell the cars for whatever it is (who actually knows?) that manufacturers extend to autoworkers. I bet that with these great price incentives on the vehicles, the add-on's sales are getting more creative and aggressive.
Autoworkers and employees of manufacturers /dealers probably have enough savvy from being on the inside, that they don't feel the general public is taking away from them. In fact, with all the domestic lay-offs lately, all employees probably support any marketing strategies to increase sales.
Another thing to know is that car dealers lose profit margin every day that a new car remains on their lot. So, any incentive or pitch that helps sell cars faster is going to benefit the dealers.
The dealers and manufacturers work very closely together to make sure neither of them are getting burned. The employees that have been laid off are working in an extremely competitive industry. Think of all the automobile manufacturers there are and consider how fickle the marketplace is. Also consider how gas prices, with the help of the media, are keeping consumers paranoid. It's a tough gig in the car business!
You as a consumer just need to shop around and know when to just walk away. Car dealers also have sales targets and quotas, so research a little about this and you'll discover that your best deals may occur based on the monthly calendar, and not the latest cool deal on TV. When the dealers are absolutely desparate to sell cars, that's when you wanna show up. But still be ready to walk, if necessary. That's the game.
If you're gettin a sreaming deal, also know that when you get to the finance mgr's office, they're gonna try to make back the money that the sales dept. "saved you". Many of those add-ons aren't necessary. Just take care of your car-- keep it clean and maintained on schedule. It'll be fine.