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Sep 09, 2005 -- Employee car pricing is a huge hit

The second largest expense for most people is a car, and the car market has been turned upside down because of employee pricing discounts. It started with GM and then Ford and Chrysler got involved. In the month of June, sales were up about 50 percent more than last year because of these programs. So, this no-haggle promotion is the most successful one in history. The interesting part is that the amount someone saved on a car overall was the same, according to several studies. But, once the employee pricing model was introduced, sales took off. People hate the car buying process, so they were willing to spend more – or at least the same – when the price was the price. If you want more proof, think about CarMax. The company has a no-haggle sale policy, and people can get their money back if they decide to take the back in the first three days. CarMax may not be in your town yet, but if it is it’s worth checking out. People in the car business need to wake up and realize despise the grind. The average car dealership keeps people in limbo for two days before the sale happens, and people are sick of hearing, “Let me go talk to my manager.” They’re voting with their wallets and it’s going to continue.

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