Supplier, family, and credit union member pricing. I good basis for beginning negotiation, about midway between invoice and msrp.
Employee pricing is less than invoice. The dealer is paid a set fee for each employee pricing sale and the amount the dealer pays is the amount the employee pays. Example: MSRP is $15,000, Invoice is $14,000, Preferred Pricing is $14,500 and Employee Pricing is $12,500. The dealer profit for a Preferred Pricing sale is $500 plus holdback. The dealer makes no profit for the Employee Pricing sale, but the vehicle costs the dealer $12,500. The dealer is paid an amount for the processing of the sale: $400 for a small car, $500 for a regular sized car, $600 for a Camaro or full sized car, and $750 for a Corvette.
It gets more complicated. If a dealer participates (voluntary) then every vehicle is available for employee pricing EXCEPT Corvette (which can be but does not have to be) and certain excludeds, currently the Camaro ZL1 is excluded from both Preferred and Employee pricing.
The above number are rounded and intended to be approximates.
There are additional caveats regarding Employee Pricing, such as a vehicle can not be resold within a year (Corvette 2 years) of being titled.
Not all dealers participate in either plan. Dealers closest to Plants usually (probably all) do participate. If I recall correctly, a dealer can participate in Preferred but does not have to in Employee but if participating in Employee has to participate in Preferred. And the Corvette can be excluded but if a dealer sells one Corvette under Employee Pricing than all its Corvette sales are subject to Employee Pricing (providing the purchaser is eligible for employee pricing).
Wow, a lot of words, even for me.
Laborsmith