Posted: 6/9/2011 6:14:58 PM EDT
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I was thinking of using the COSTCO auto-buying program; the prices seem much lower compared to the dealer's asking prices, but of course the COSTCO rates are fixed and there would be no haggling.
Opinions? |
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We used it as a starting point, and leveraged it against other dealers to get the best price. We told them, "Look we can walk in and any one of five COSTCO dealers will sell us THAT car for this price. Someone needs to do better, and probably can. Is it you? Today?" |
| I work for a Boat dealership here in Seattle and we use the Costco program for Sea Ray and Boston Whaler boats. I can tell you that it's probably the best deal you can find unless the dealer is willing to match the price. I get a lot of customers in our showroom who have used the Costco auto program and have said they will never go through another dealership. |
| I am in the market for a brand new honda crv. Test drove at the dealership. They said invoice was 20975 and msrp was 23000, we can do anythign in between. I went back the next week after emailing about their costco price and they said the costco price was 21500. In my case, I think negotiating a little bit will give me the lower price. But I know I can pay 21500 with no effort if I want too. |
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I used to do internet sales for a dealership in Michigan.
We were the Costco dealership for our brand. They made a big hoopla out of it, you had to come in and go through a little presentation, and then basically you were given the same price that any other Internet buyer would get. A few people walked out in a huff after that. Can't say as I blamed them. Even though it's a "set price", you can still negotiate. Get that price and bounce it off a couple of other dealers, as others have said. And check Edmunds and Carsdirect.com to try and find out if there's a rebate or a factory-to-dealer incentive they aren't telling you about. Always be ready to walk away. The end of the month is a great time to buy a car. Even if you look at it earlier in the month, string them along to the end. Especially in a high-volume dealer. They are always trying to make it to the next level of quota, or get a bonus, etc. |
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I used it. I found the best price using one of there preferred dealers. But I didn't buy the car, they didn't have the car I wanted. I found a dealer that matched the price and had the options I wanted. But it took a lot of legwork.
I found the COSTCO program got me the best price, and it was easy. Not much BS, but if there dealer doesn't have exactly what you want, then the dealer tries to rape you on doing a dealer trade. The dealer didn't have the color I wanted, they found one in Houston, I'm in DFW. they wanted to charge me $400 to get the car to DFW. I told them FU, I'll buy a one-way ticket and fly to Hobby through Southwest and pay for the gas driving back to DFW for less than $400. |
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Not much BS, but if the dealer doesn't have exactly what you want, then the dealer tries to rape you on doing a dealer trade. The dealer didn't have the color I wanted, they found one in Houston, I'm in DFW. they wanted to charge me $400 to get the car to DFW. I told them FU, I'll buy a one-way ticket and fly to Hobby through Southwest and pay for the gas driving back to DFW for less than $400. The COSTCO-referred dealer doesn't have what I want on the lot; I already checked. So, where will the car come from? Every make/model is listed as "available" on the COSTCO auto site, without regards to dealer stock. So, how does this work? |
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Not much BS, but if the dealer doesn't have exactly what you want, then the dealer tries to rape you on doing a dealer trade. The dealer didn't have the color I wanted, they found one in Houston, I'm in DFW. they wanted to charge me $400 to get the car to DFW. I told them FU, I'll buy a one-way ticket and fly to Hobby through Southwest and pay for the gas driving back to DFW for less than $400. The COSTCO-referred dealer doesn't have what I want on the lot; I already checked. So, where will the car come from? Every make/model is listed as "available" on the COSTCO auto site, without regards to dealer stock. So, how does this work? I'm not sure how that works, I didn't get COSTCO involved w/this. I wanted to pay invoice price. I was haggling with the dealer. I was paying cash for the car, all of the dealers I dealt with were not willing to negotiate much. I searched all of Texas, Oklahoma, even talked to a dealer in Alabama. Then as a last effort I found a dealer in Ft. Worth. Matched the best price I found, no BS. I actually contacted COSTCO after buying the car, and told them there preferred dealer had the best price, but didn't have anything on the lot. Maybe that's the catch 
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There is probably more than one COSTCO dealer available, some were not listed on the site, but ended up being a part of the program when we got there. I'm in a major metro area though, so it might be different if you are in the sticks. Fact is, the COSTCO dealer will honor that price, and without a haggle. You just may have to wait for the car to come in. I still leverage other dealers with it, as, "Look I can get this car without any argument at this price. I'll take your silver one for $100-$5000 less, let's deal." Never tell them that the one they have is the exact one you want, make them think it's a concession. You REALLY want red, but tell them that red is like #5 on the list.... |
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We got our Honda CRV through the Costco program. Great thing was, at the time, any extras you bought were at dealer invoice cost. So, we got some additional stuff and it wasn't outrageous. The only issue we had was that the dealer tried to screw us on the interest rate. That was resolved pretty quickly when I pulled out the offer from our bank. If you haven't already, check into CarsDirect.com as well. I bought my Tacoma through them and it was very painless, at a great price! Eric  |
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Not much BS, but if the dealer doesn't have exactly what you want, then the dealer tries to rape you on doing a dealer trade. The dealer didn't have the color I wanted, they found one in Houston, I'm in DFW. they wanted to charge me $400 to get the car to DFW. I told them FU, I'll buy a one-way ticket and fly to Hobby through Southwest and pay for the gas driving back to DFW for less than $400. The COSTCO-referred dealer doesn't have what I want on the lot; I already checked. So, where will the car come from? Every make/model is listed as "available" on the COSTCO auto site, without regards to dealer stock. So, how does this work? I don't think you've posted the make/model of vehicle you're looking for, but most of the OEM websites (I know GM, Ford, Toyota, and Subaru for sure do it) have a way that you can check local inventory and in many cases even view the window stickers. What I usually do is try and find the particular vehicle that I'm looking for (trim level, color, options, etc) in my general area, note the VIN, and then relay this info to the dealer. Usually they will do a dealer trade and get it for me. |
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so how does this work exactly? do i walk into costco and tell them i want to buy a car? I'm using the online service. I'm going to the dealer tonight and post an update. www.costcoauto.com thanks, i'm looking at a new car. i get Ford's X plan pricing through my employer, and the dealer i went to basically said here's what you pay, fuck off. we'll give you $500 for your trade.
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Have used the Costco Auto program for our last two vehicles.
1) It's a good source of for research, because with one phone call or email you can get a good starting price to compare to other dealers. 2) it got us a better than cost deal on our Dodge Ram... Effectively getting the Hemi package for free. 3) Reliable, and free with our costco membership. |
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so how does this work exactly? do i walk into costco and tell them i want to buy a car? Start on the website. Put in the model and options you are looking for. You will be given a list of participating dealers in your area and usually the name of a contact at the dealer. Call the dealer and set up a time to go look at a car. When you do, they will show you the normal asking price, the dealer invoice price and the Costco price. Let the contact know you are still looking at some other makes and models. If you can visit some other dealers and get some info on other models that are comparable to what you want, you can use the info as leverage to get a price better than the Costco price. |
| You ought to consider where you're going to have that car serviced and repaired. Back in the days I worked in a dealer service department every time a customer needed a break in price or some weight thrown around with warranty repairs, the very first thing the service manager wanted to know was "Did he buy the car from us?". If the answer was yes the favor was granted, if no, then usually not. Buying a car from the cheapest dealer in town then taking it to the nearest dealer for service and warranty work rarely pays off, you won't hear it out loud, but dealers don't appreciate that. |
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Not much BS, but if the dealer doesn't have exactly what you want, then the dealer tries to rape you on doing a dealer trade. The dealer didn't have the color I wanted, they found one in Houston, I'm in DFW. they wanted to charge me $400 to get the car to DFW. I told them FU, I'll buy a one-way ticket and fly to Hobby through Southwest and pay for the gas driving back to DFW for less than $400. The COSTCO-referred dealer doesn't have what I want on the lot; I already checked. So, where will the car come from? Every make/model is listed as "available" on the COSTCO auto site, without regards to dealer stock. So, how does this work? I don't think you've posted the make/model of vehicle you're looking for, but most of the OEM websites (I know GM, Ford, Toyota, and Subaru for sure do it) have a way that you can check local inventory and in many cases even view the window stickers. What I usually do is try and find the particular vehicle that I'm looking for (trim level, color, options, etc) in my general area, note the VIN, and then relay this info to the dealer. Usually they will do a dealer trade and get it for me. I called Kia, and they looked for the one I wanted. but the dealers were reluctant to do a dealer trade. I did everything you said, but apparently the 25 dealers I dealt with still wanted to gouge me above invoice. I found the exact one I wanted near Houston, but since the dealer had tinted the windows and had it pinstriped they had added $500 above invoice. They wouldn't come off that. So, I walked. |
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This program seems pretty straight-forward. COSTCO negotiates for a certain profit amount for the dealer, and you get the car for less than MSRP. You might be a better negotiator and get a better deal; YMMV.
The sales guys I talked to last night must be doing good business, because they pretty much blew me off, or so it seemed to me...maybe this was because they did not have what I wanted on the lot. |
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*** UPDATE ***
This program seems to be a good deal, if you an inexperienced negotiator, like me. Basically, it is $500 over dealer cost, and no haggling: boom, here's your car. Not sure just how true that is, but I got this at a much lower price than at the other Toyota dealersip in town I went t first, and barely got out alive from. 
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