Best Buy is now selling the Palm Pre for $99 with a 2 year contract, $100 less than the previous price.  As usual, purchasing a phone at Best Buy also means that you don't need to futz around with a mail-in rebate, all rebates are instant.

We're not sure exactly what to file this under:

• Sales need a boost
• Inventory is great, time to start moving the sucker
• Time to start competing with the iPhone 3G
• Crazy Carl, former used car salesman, is now in charge of smartphone pricing at Best Buy

Whether this is a permanent price drop for Best Buy or a temporary thing is as-yet unclear.  But the bottom line is that if you are still in the hunt for a Pre (or want to pick up a second one for a family plan), it would seem like a good idea to hit up your local Best Buy this Sunday afternoon.

Thanks to Eric for the tip and photo!

Update 2: As some have noted in our comments, the pricing was an error.  Best Buy Twelpforce participant, Best Buy Marketing Manager John Bernier tweets (and confirms - Thanks John!) that Best Buy is returning the price to its rightful spot.  The price is $199. Anybody manage to eke out the $99 price point? [via Engadget, thanks Wiski!].

Update: Farhan has helped us figure out the pricing change.  As you can see in the commercial below, Best Buy Mobile's "Twelpforce" is from the future.  Since it was probably inevitable that the Pre would drop to $99, they're just a little ahead of their time.