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Deals of the week: Employee pricing is back

2011 Ford Fusion

Ford/© 2010 Ford Motor Company

It's summer. In the Canadian car business that means "employee pricing" is back.

Nissan Canada got the ball rolling earlier this month with an employee pricing promotion slated to end June 30. This week Ford of Canada jumped in the game, using the slogan, "Share Our Pride, Share Our Price." On top of employee pricing, Ford of Canada is also touting cash discounts of up to $12,000 plus another $1,000 is on the table for Costco members.

Nissan's latest sales gambit is understandable. Nissan brand sales were down 16.5 per cent in May, while Infiniti luxury sales were off a whopping 36.9 per cent. That in a month when the overall Canadian market was down 3.8 per cent. In other words, Nissan/Infiniti significantly under-performed the market.

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Ford officials have often said that employee pricing is a hugely successful sales promotion. Ford of Canada sales were down 2.6 per cent in May, which means the company barely out-performed a down market.

On the year, Ford's sales are up 5.8 per cent - and Ford remains the No. 1 car maker. But General Motors, at No. 2 in sales, is just 10,000 units behind Ford, with Chrysler Canada trailing GM by about 1,500 sales.

Thus, it looks as though Ford is going down this road to remain No. 1 in Canada - with GM and Chrysler nipping at Ford's heels. Look for GM and Chrysler to throw more money at the market in response to Ford's June push.

The summer is shaping up to be a car buyer's dream. Deals of the Week found these four for now, and more are sure to come in the next few weeks and months.

As usual, Deals of the Week obtained pricing information from Here are the numbers.

2011 Nissan Titan Crew Cab 4x4 SV

MSRP: $40,089

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Freight, dealer prep, air conditioning tax: $1,730

Employee Price discount: $5,291.75 (13.2% of wholesale price)

Factory discount: $865 (Freight Charge discount)

Taxable subtotal: $35,662.25

Total price with 13% HST: $40,298.34

2011 Ford Fusion S 2.5L I4

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MSRP: $19,999

Freight, dealer prep: $1,550

Employee Pricing discount: $915

Factory discount: $500 (Delivery Allowance factory-to-dealer rebate)

Taxable subtotal: $20,134

Total price with 13% HST: $22,751.42

Factory discount: $1,000 (Costco rebate)

Final price: 21,751.42

Note: 6.49 per cent financing for five years

2011 Dodge Avenger SE

MSRP: $19,995

Freight, dealer prep and air conditioning tax: $1,500

Dealer discount (estimated): $350

Factory discount: $2,000 (Consumer Cash factory-to-dealer rebate)

Taxable subtotal: $19,145

Total price with 13% HST: $21,633.85

Note: 6.49 per cent financing for five years

2011 Lexus IS 250

MSRP: $32,900

Freight, dealer prep and air conditioning tax and Green Levy: $2,050

Dealer discount (estimated): $1,500

Taxable subtotal: $31,450

Total price with 13% HST: $35,538.50

Pricing information source: Calculations based on Ontario customers. Please note that while the information above is accurate at the time of publication, incentives are given at the discretion of individual dealers, and may be changed or discontinued at any time. Dealer discounts are negotiated with the customer on a case-by-case basis.

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About the Author
Senior writer, Globe Drive

In 25 years of covering the auto industry, Jeremy Cato has won more than two-dozen awards, including three times being named automotive journalist of the year. Jeremy was born in Montreal and grew up in the San Francisco Bay Area. More

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