WHAT DO REAL CAR BUYERS SAY ABOUT THE COSTCO AUTO PROGRAM IN 2024? The Homework Guy, Kevin Hunter
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- Опубліковано 3 жов 2024
- Back on April 4, of 2020, we did a show on the Costco Auto Program, TITLED: “COSTCO AUTO PROGRAM: DOES IT REALLY SAVE YOU MONEY ON YOUR CAR?” Costco asked us to take it down, but we didn't.
Here's the link: • DOES IT REALLY SAVE YO...
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My experience with the Costco program was good. I helped my daughter buy her Toyota using it. when I told the dealer we wanted the Costco deal, they pulled out the Costco document that showed very clearly the MSRP minus the Costco discount. we declined any add ons and there was no pressure.
same happened to me, I will use Costco again.
Costco money good money 🤑
What was the percentage off? Thanks
@@univac7677 it was 4 years ago, I don't remember the %
What Toyota dealership did you use?
I had an amazing experience with the program in California. But, I didn’t start with the program. I stumbled upon it after engaging the dealer who turned out to be a Costco program dealership. They didn’t have the truck I wanted, but Factory Ordered brand new 2023 Chevy 2500 HD for $500 over invoice price, plus pointed me to Costco auto program and received additional rebate. No finance shenanigans. No dealer add ons. No MSRP + market adjustment markup, like everyone else at the time. They even delivered vehicle to me. Turned out to be the best car buying experience I’ve ever had.
Cars are getting so expensive and dealers are so shady that it may be prudent to start hiring attorneys to accompany car buyers to the dealership.
Hell I'd be happy to pay someone not affiliated with a dealership but super savvy about the process to come with me. It's so stressful, even more so for wimmin cause all they see is dollar signs.
@@CraftAmundous there are brokers that do that.
U hit the key point in buying. Never go to the dealership without a deal in place. U have hundreds of dealerships to quickly narrow the process to a handful . Then u work them against each other. Personally, I’d suggest buying private. If ur buying new , that’s a you problem. But always have a contract in place before going. Also, Many dealerships will bring the car to u
Took my sister with, she is a attorney, saved me thousands. Thank you sister "It".
Indeed! Great suggestion!
I used the Costco buying program but a little differently. They had a "rebate" offer on Chevy instead of prenegotiated pricing. Worked like a charm. I went to 6 dealers (virtually) and negotiated my price. I then went to the finalist and brought along my Costco rebate (and two other rebates I qualified for) and the dealer honored it all. In the end, while most dealers were charging a few thousand above MSRP, I paid $3500 under MSRP. And there was no pressure to upgrade it upsell anything. Yes, I had to do the negotiating, but in the end for a great price using the Costco rebate.
We had a different experience with the COSTCO auto program. In Feb. 2022, we were looking to buy a new Subaru. The first thing which happens when one starts up the web app is it asks for one's zip code. We entered out zip code, and were told there was no participating dealer in the area. So, I tried my sister's zip code (she lives 45 miles away), and got the same response. Finally, I tried my son's zip code who lives in ChicagoLand, and got a dealer who was only 15 miles away from him. We ordered the car (it would not be available for 3 months, but was being built in Japan), went to pick it up, and drove it back to Michigan. No attempt to sell us any packs.
While there we were told they were the only Subaru dealer in the area who still agreed to the Costco price; all other dealers raised their selling price $3000 to $4000. I was told that the owner's position was that he had been selling cars at list price for $20 years and wasn't going to let a little pandemic change his policies.
I used them a month ago, only dealer that offered me a car with no markup, I bought instantly.
I used them to buy a Camry in 2019. The offer was upfront via e-mail, and just as good as what I was able to negotiate at other dealerships. However, the real negotiations began with the trade-in and getting those stupid dealer add ons, taken off. After the "war", the salesman confided in us that Costco customers are able to save about $1500 a car, but you can do much better on your own, as he said, about $2K off. If anything, the Costco price is a good starting price. Again, like others have said, that was 2019, probably doesn't apply anymore.
I USED to be a member and I agree.
My experience was different. I went to a dealership and got a price on a Prius LE... the quote was about $34000... I went through the COSTCO program and got the same exact car for about $29000.
I will grant you that there are times that it CAN work out. It's just not the norm, unfortunately.
I used the costco auto buying program before. The only good thing is that there is no pressure for you to buy and they will show you the number they will start with and that is it. They will add every fee, sell gap insurance, extended warranty, and what ever you are willing to pay for to get the car. I will "use" the costco auto program just to see the members price and start lowering the price from there or just walk away.
When we bought both our Dodge ram and RAV4 we went through Costco and all we dealt with was the fleet manager and it was painless and we were very satisfied with the prices for both of them. We didn't deal with any regular sales people at all. The price for the vehicles was a set, non-negotiable fleet price that made it very simple and it was perfectly satisfactory to us. They showed us what options were available, but did not hard sell us at all. It was a very pleasant and relatively painless experience. In a nutshell, our experience with Costco Auto sales was exactly the opposite of what you're describing here.
Kevin and Elizabeth, you are a God send to the car buyers market. KEEP UP THE GOOD WORK.
Thank you, Dave!
We used Costco to buy our 2002 Honda Accord. The first step was to go find out the price. When I told the "Costco Rep" I just want to know what the price is, he took us on the grand tour, introducing us to the "family" and showing off the facility, offering us beverages, etc. When we finally got back to his desk, he pulled out the contract and handed me the pen to sign. I said, "I'm only here to find out the price, which is what I told you 20 minutes ago. We are still shopping and price-comparing." He nearly burst into tears. He was shocked that I wouldn't sign the contract. After all he did for us and now we won't buy? Since we weren't Homework Guy qualified, we came back later and paid too much but the guy we saw the second time was a different guy. We may have paid too much, but the car is still like new and going to a grandson for a wedding present.
You are right! I went to 2 dealerships using the Costco recommendations and neither one was worth a thing. The first tried a high pressure tactic and I walked. The second supposed Costco salesperson was totally clueless about cars. Once again I walked. Bought my Hyundai on my own and did better!
I bought my factory ordered car via the Costco Auto Buying Program in 2020. When I visited the dealer, I got their Costco out-the-door price, which was competitive with the other dealers I contacted. Plus, I received a $1000 Costco rebate upon ordering the car, and then when it was eventually delivered, I got another $2000 Costco rebate. Very happy with my purchase. In addition, my dealer honor the Costco Auto Buying Program which provides discounts for parts and service. I used this to purchase a part replacement, saving 15% from the $425 part I ordered, which can only be obtained via the dealer.
If you got $3000 rebate from Costco; which meant you over-paid for the vehicle in the beginning. Costco does not make $3000 from the referral ....
I had an OK experience using the Costco Auto program here in NV. Found a dealer in California up the road and for the most part all was good. Really hard to tell where the discount was trying to keep track of the sales sheet. But I'm happy as I didn't get 'ripped' off and was able to escape the dealer extended warranty, etc. I like my 2020 Ford Escape Hybrid. Pretty much perfect for Reno's crazy weather. I also got it with the bullet proof 2.5L, instead of any EcoBoost engines that blow up. I had watched some good videos on car buying (thank you THG). If you can use 'any' car buying progam and can point to something that you saved, I guess it's OK.
Here's the point; in a previous video it was mentioned that the car dealer pays Costco $300 per vehicle sold in the dealer-Costco program (not all dealer vehicles) AND the predetermined price is NOT the out - the - door price; it is a "pre-determined" price BEFORE you go into finance and Costco is not involved in finance, looks more like a "referral" program.
I used the Costco program last year (April 22) during the height of autocalypse! I knew what exactly I wanted and was willing to wait for a factory order. I reached out to 9 different dealerships in a 50-mile radius. Only 5 of them got back and were asking for anywhere between 3-5 grand on top of MSRP, while the dealer who I approached through the Costco program honored the Costco pricing at that time ($500 below the MSRP). I did wait for a little under 7 weeks for my new Outback XT to arrive. In fact, Subaru raised the price by $500 on most models on April 26, 22. The dealership hurried to place the order on April 25th such that I could keep that 500 in my pocket. When there are 10 cars and 20 buyers, it is bound to get chaotic. Pointing fingers is the easiest thing to do. Thanks to the Costco auto program and Bill Kolb's Jr. Subaru, Orangeburg, NY, I bought a new car hassle-free for a price I am happy with under the autocalyptic circumstances. No sales pitch, and no F&I brainwashing, although they did offer me a few insurance/protection options that I politely declined as I was paying cash.
The only thing the Costco program did for me was to send me on a 400-mile roundtrip to an affiliated dealer that wanted nearly $3000 more than my first-choice, local dealer. Costco, either drop this program or make it actually beneficial to your members!
I tried the Costco car program twice, years ago. On Maui, you’re pretty much stuck with one Toyota dealer. The Costco Toyota dealer is on The Big Island, Hawaii. Which means flying there for hundreds of dollars, then shipping on the barge to Honolulu, then Maui. (No direct) for hundreds of dollars. No savings. Maybe more money.
So, in one case I bought a Toyota in Honolulu, a close out model (a 2004 Toyota Tundra base model for 17,500) The other, I bought a 2006 Toyota Corolla on Maui. They are both still running!
I used them to try to buy a 2023 Kona SEL. The dealer had add-ons that "weren't negotiable" and low-balled my trade-in. Yes, they showed me the "Costco Savings" paperwork, but the savings were washed out by the add-ons. I left there and went to another Hyundai dealership. Got the car without using Costco. No add-ons, negotiated a decent price and more for my trade-in. For me, the Costco program was a waste of time. You can negotiate a better deal on your own.
This channel give so many Tips on how to get started on buying a vehicle and how to try to get the best deal. Ty
I am a loyal Costco member since 2013. I shop at Costco about 1-2 times a month at least. I like that company's business model and how they treat their employees. I wish other big companies would imitate what Costco does in their communities. I strongly believe that any community benefits from Costco warehouse in the community. On the other hand, when it comes to their car buying program, well, I wish if it was as helpful as Costco suggests it is. I have purchased 4 brand new vehicles for myself, and have helped several friends of mine to buy theirs as well. I tried one time to use my Costco membership for that purpose in 2015 and basically what I got was about 1,500 bucks off of the MRSP price as the negotiating point on a vehicle was was priced out at 27,500 dollars. (about 5.5%) less than the MRSP. I was able to utilize my average car shopping skills to shave off more than 2,000 bucks of the MRSP for the same equipped vehicle at another dealership within 30 miles. The issue we experienced with the first dealership is that they tried their best to sell us stuff we did not want at prices we could not afford and at the interest rate our credit scores did not deserve. So, basically,, they tried to recuperate their initial discont-loss through Costco buying program with other manipulations in the finance office.
I do prefer to buy at Costco, I like what they do within their premises, and I will remain their faithful customer as long as they continue practicing their current business model. Next time when I am in the market for the new vehicle, I will stick with my skills, which are greatly expanded thanks to you guys and your clips, tips, and explanations, for which I am one of many who are truly grateful followers of your channel.
My best regards to you and your staff members, with a wish to continue with the good work. Buona fortuna nel tuo lavoro.
As someone who was in the retail auto business for 20 years, I would recommend not buying an auto for another 18 to 24 months... inventories will rise and prices will decline... that is, dealers' lots will be full and they will need to move product or face crippling floor plan interest... they will become far more willing to negotiate and you, as the customer, will have more choices and borrowing rates should be considerably lower... if you are an impulse buyer, disregard this info.
Another great and informative video.
I had my suspicions about that program. I consider myself very well informed and still really dislike the auto buying process. Even if you know what to do the process is still unpleasant.
I looked into the Costco auto program a few years ago. Not sure that I would have saved any money, but for the type of vehicle I wanted, the closest dealer available in their program was two hours away on a good traffic day. Since there were local dealers selling the same type of vehicle, I opted for the convenience of buying locally. Maybe the program has changed and now offers more dealer choices, but I'll continue doing it the old fashioned way. My experience with most things is that adding a middleman only makes the process more convoluted and rarely saves enough money to make the endeavor worthwhile. As an additional benefit the local dealer offers free lifetime inspection and other incentives that make the local choice a better value.
It actually worked great for me the one time I used it. My walkout price was beyond anything I could imagine, but I think I was just really lucky (also think it depends on the market and the dealership). This particular dealership was in a wealthy area of a very large metro area, and the Costco was almost next door, and they did lots of volume with the neighboring Costco. However, I still had to deal with them trying to sneak a couple of extras on (like side molding, etc.), which I refused. You also still have to deal with the dreaded finance guy, which is the worst part. From other people who have used the Costco program, I have heard horror stories - the typical BS from dealers, such as not honoring the price, bait and switch, not receiving a callback, so I'm not sure if the Costco program is even worth it for most people.
I'm a Costco member and you are 100% correct about them! I looked into it and said to myself it was not worth it at all! I will do better being a women on my own, to do my own negotiation! Great job for this video 🎉🎉🎉🎉🎉🎉 Exposing the real truth🎉🎉🎉 about them!
Their car rental service sucks too. I rented an enterprise car through Costco and for the second time in 2 years, enterprise tried to switched cars on me. I needed a 7 person mini van that I reserved. The morning of my vacation I went to pick up my van only to be told it was unavailable and they said they “tried” to call me to tell me that. I have no missed calls or messages or voicemails on my phone. Lies, lies lies. Costco was no help. Costco has “pretend” services so I can only guess their vacation packages are also a scam. Enterprise substituted a Hyundai Palisades suv acting like this was a no charge upgrade. Clearly a mini van has more room than a palisades. I had no choice but to take it. Done with Costco and done with Enterprise.
I just tried it less than a week ago. The dealer padded the price and even with my 30% off of dealer add ons he wanted over 50k for the Honda crv sport touring. He told me how easy it is to do a Costco deal. Yes if you don’t mind being taken advantage of. Needless to say I walked away. It was a rip off.
Costco just hand us over to the dealership to be devoured!!
50K for a CRV is highway robbery
You two are credit to an otherwise despicable industry. Thank you for everything you do. From your friends up here in the Great White North!
Thank you. We are a Costco member. Looking to purchase a new car now I will not use this service, I was but not now......
I tried to use Costco on a Toyota Tacoma. It was insulting. If I can't negotiate more than $300 off a car, I will just go home.
i for a change did like the program to be honest . I did my homework before buying my truck so the dealer wouldnt scam me. They sent me a set price through email after looking at my options it was reasonable
I just bought a 2024 Audi SQ8. Made my best deal on a car I ordered 5 months ago. When going through the payment I showed them the Costco coupon for $2000 off. Sure enough, THE DEALER TOOK 2k more of the car. Great dealership. Flemington NJ
In 2015 I tried to use the Costco program. I made an appointment with the trained Costco salesperson at a Honda dealership. When I got there he disappeared and I was stuck with a high pressure guy. After wasting hours I finally left. I went to a different dealer and actually bought a car. They were not helpful and kept trying to talk me out of it. I ordered the car and I got it. They tried to jack the price but didn’t succeed and I love the car. The dealer treated me like crap and couldn’t take the time to help me with the new car. They just said, “It’s parked out there.” Then they gave me the keys. The dealers obviously don’t respect the program.
Thanks for not burying the lede and answering the question immediately, I appreciate that a lot.
We bought two Toyotas through Costco some 10-15 years ago -- the dealer didn't try to add any add-ons and clearly showed the Costco discount.
Today, on the other hand, I'm interested in buying a new car but cannot find any participating dealers in my area for any of the brands I have in mind.
In 2016 for my 50th birthday i wanted a Jeep Wrangler .The first dealer was $500 below msrp. The next dealer was $3500 under invoice. HAPPY BIRTHDAY TO ME
I have used the Costco buying program a couple of times. Yes you can get better prices on some models is you dicker, walk out, and play dealers against each other, but if you want a decent price without all the hassle and you are already a Costco member it works fine.
You're the best of the best. Thank you for your priceless service.
Thank you so much!
Kevin and Elizabeth if they ask you to take down any video you know you two are honest and that goes against their tactics
Saved a $1000 on my new Silverado. It was a rebate. I did my own negotiating.
I asked for quotes on the Sam's Club site. One dealer sent me a $3000 discount offer on a $49,995 car. The hitch was that they are a 3 hour drive. After a few back and forth discussions I was able to get my local dealer to match the price.
This car was in decent supply but the dealers in general were not discounting. I was lucky to find that dealer who we think had a car he was sitting on for 3 months or so. My local dealer realized the 3 hour away guy had the car listed for $300 less MSRP. That is he had taken it on his lot before the December price rise.
I don't know what the full Sam's experience would have been. I just was lucky. Getting quotes is never a bad idea.
Costco has dealerships that they work with, and each of those dealership has assigned sales ‘mangers.’ Each model has an assigned Costco discount. The rest is up to whether these dealerships operate in good faith or not. I helped my mothers-in-law purchase a new ES 350. One Costco dealership acted in good faith and gave us the correct discount and OTD price. Another Costco dealership (closer in distance) tried to low ball us on the amount Costco set. When we mentioned what the other dealership quoted us, sales manager tried to say, that was a mistake. We went back to the other dealership and saved just over a thousand dollars from the others “best offer.” So Costco works, it’s just you have to find people that operate in good faith. Best of luck.
Well that's not a whole lot different than shopping at any dealership. Finding somebody who operates in good faith is very difficult. Costco should know that.
Lol.. Costco auto! I just recently had the displeasure of wasting my time with that. I like their warehouses but this program is absolutely useless. I am in St. Louis. I went to one dealer by myself and they gave me (for Honda Accord 2023 EX) MSRP + $499 for floor mats + $500 doc fee + Taxes. No additional charges of any kind. I decided to try Costco auto program and they sent me to another dealer (I have heard that this dealer is shady...I didn't want to go there). The gentleman over the phone told me "Sure, we can beat that dealer's offer". I went there, and he made me wait for quite some time then started asking me about monthly payments. I said "Just give me the out-of-the-door price...I will figure it out"...then after some more time brought this paper with MSRP+ dealer-added accessories (worth $3200) + usual doc fee + floor mats + taxes. I asked him "How is this better than the other dealer?". He said, "Oh, we will take $150 off of the added accessories charge. You are lucky just 2 weeks ago I sold this for a $5000 market adjustment fee". I left immediately.
Good for you. Now if everybody would just do this.
I had messed results with this program. You STILL HAVE TO DO YOUR HOMEWORK! I caught the Toyota salesman trying the old “we have mandatory add-ons.” Don’t get me wrong I was okay with a great tint job but not a fabric protectant spray. I had to drive 60 miles but I was referred to Ray Huffines Chevrolet in Plano, TX. Awesome smaller dealership that let me fully build my SS Camaro. No mark ups, games and the program got me free window tint. I think the biggest thing was the program referred me to a dealership that made the process so easy. I had walked away on the low side of close 30 car deals because of the games. I think the program as a whole could be summed up as a referral program with tint. Set the tone from the start as I’m not a “Mark” I’m an informed customer.
I have never use this program. I am a member of Costco. However there is a guy in the UA-cam comments on another video that claims him and his wife went to buy a Toyota Camry LE hybrid that the dealer had marked from 32,000 up to $45,000 an 8000 adjusted markup and a $5000 adjusted market they would not budge on any of it, he then claims they went through the Costco program and got that exact same car for just over $30,000. Now this is just a com enter on UA-cam. I have no personal experience nor do I personally know anybody who has used it but today in 2023 if this kind of thing is actually happening, it may be worth looking into.
Sounds like a Costco Auto program employee commenting. That is permitted.
Every time I go to the Costco program dealership it was usually far away from my NYC home.
I am not a negotiator nor do I enjoy negotiating a deal for a car in fact I detest working with a dealership.
But my experience when I do car shopping I always find that I always get a better price than Costco without even trying.
Every time I try Costco dealership the Costco contact at dealership is sometimes NEVER there and when I do get the correct sales person they always never beat the other dealership prices.
Costco informs me when I complain about the long distance to Costco dealership and never giving me a discount Costco response to my concern is
“That’s great that I received a better deal than Costco can get for me “
Can you imagine Costco never addressing the long travel to get a price that I could beat without trying closer to my home without Costco help?
Dealers pay a finders fee to COSTCO which eventually winds up on the price you pay. The only benefit was the negotiating hassle but that’s over since the pandemic. You rarely see this program in action now. I get a notification once in a while for some high end vehicles.
That's right. As we said in the video, most programs like this (Costco Auto included) completely died during the pandemic.
I had no problem. In Feb. 2020 I wanted a new Camry LE...local dealer was a subscriber of Costco's program. They showed me the price of a Camry LE they had in stock. I drove the car...they showed me the Costco price which I liked...I bought the car for $3,000 off MSRP. No problem at all. The dealer's price was non-negotiable.
Back in 2011 we looked at a few buying services to get a new car, including BJ's (a competitor to Costco of which we were a member at the time). In the end, we found that using AAA (which worked at the time with TrueCar) got us the deal we wanted. I think you are right that they are lead generators for dealers. Fortunately, even before this was before I 'met" you good people, I had done at least some research and was able to prevent some large costs like the delivery fee being doubled. We still own the car we bought at the time!
I tried to buy a Honda Accord Hybrid and the only thing that was offered was $350 off MSRP.
I was told at a dealership that they would give me the Costco discount, or they could give me a better price without it, so it was my choice. I have never mentioned Costco again, when buying a car.
Great video. Costco is fine for big box items. Car buying, not so much.
Thank you guys for your work!😎😎😎
These programs should only be used as a starting point for negotiations. Remember United Buying Service (UBS). I used this program in the 80’s and found it to be a good starting point. CostCo and the like should be used the same.
i tried it in 2007. they sent me to a local honda dealer. they offered $1500 off a $25k civic, then offered to buy my trade at $2,000 UNDER kbb wholesale!
not only did i laugh and leave, but when costco contacted me, i told them that it was just a rip off,con job. 💰🤑👺👹
That's the rub as you mentioned, it's OUTSIDE of Costco. They have no controls. When they buy the car themselves and then sell it back to us, then I would consider it.
I worked in a dealership and had a customer come in to get their special club price once. Don’t remember if it was Costco or some other club but I definitely remember that I had no idea what she was talking about and no one else in the dealership did either…including the sales manager.
That's par for the program. Quite often nobody knows what it is.
I actually attempted to use the Costco Loyalty Auto Program in the last month out here in Southern California and it was like pulling teeth. I was told that prices were set and no negotiations needed BUT even then I could not get an Out The Door price while not having to set foot at a dealership. Then it's just limited to like 1 or 2 dealers of a particular brand in the state/region. Regardless I never understood WHY they would not give me the Out the Door price over the phone. 1 Honda Dealership rep advised from Riverside advised me that all they do is not charge the upgrade/upsell prices for the add on and even then I Still Couldn't Get an Out the Door price over the phone. Eventually I went to a separate dealership and purchased a new Honda Pilot Trailsport with the sales rep texting/negotiating Out the Door prices that wasn't using the Costco Auto Loyalty Program. Them other Dealership missed out...
The only time I got a good deal at a dealership was when I bought a no-haggle Scion. I was so happy that I bought many of the Scion branded products from the dealership.
Unfortunately the Scion brand is gone and the other cars I have bought were bad deals. The dealerships used all their tricks and I fell for a lot of them.
I will keep my aging vehicles forever and when they die I will replace them with a no-haggle brand like Tesla.
As of my experiece i was able to get 2 grand below msrp using cosco auto. On my 2021 tacoma.
Yes, the Costco Program is just a marketing program to get folks to dealers. In 2018 I priced a CRV awd just to see the price. Eventually bought one 1400.00 less.
Went to the local Nissan dealer, the salesman didn't know anything about Costco.
It's almost impossible to buy a car now on days. The interest rates are crazy high..! My credit score is around 670 and the banks approved me for 45k at 32% . I think thats ridiculous..!!!!
Kind of crazy people say the dealer added on things they didn’t want. They can’t make you buy the car. People need to be willing to walk away.
Why is it so differcult to buy a car?a car is an necessity!!
Costco car insurance is out to lunch $70.00 higher than present insurance broker.
"...truth, justice and the American way."
I like it!
-- Clark Kent
And you should know what you want ahead of time, not just show up at a dealership asking for the Costco salesman.
Now we need to implode the banking mafia. Great job to the HWG team. You guys do indeed “ROCK”
Costco program was crap. I brought the Costco program material in and then got a much better deal. will never bother with that program again.
Just went through the process or tried to. Ford took 1800 off of a Ranger and Toyota took 500 off of a Tacoma. With the Tacoma, most models weren’t covered but the dealer gave me the 500 off anyway. I didn’t buy either truck and I don’t think it’s worth it.
Good Luck! I look forward to learning more about the new process.
I didn't use the Costco Auto Program.
But I did use a 1k off for being a member at one point.
I tried to use the program to buy my truck back in 2019, and the price was substantially less than the sticker price when I researched it on Costco Auto. I was sent to the dealer to order the vehicle, and by the time the truck arrived, Costco Auto had removed the vehicle from the website, and I didn't have a printed copy of the quote. So I ended up at the mercy of the dealership to try to get the original price, I think I ended up paying about 6,000 more than the original Costco Auto program price, which was still about 2500 less than sticker.
No buying service works well in this market ( vehicle supply shortage). Costco worked when the market was “normal.”
Interesting. I think this is similar to other Costco programs. I wanted to buy air conditioning through Costco and found that the pricing negotiating directly and the Costco price were almost identical, even with the "Costco Card" discount. I don't think any of these third party programs can offer any value as the option of the delivery company is to maximize their profit and Costco has no visibility into these actions.
Pretty much!
I used the program and had an awful experience. They did give me a small discount (the dealership) and then screwed me on others fees and add ons. Do not use the program, there is no advantage. There was no Costco rep at the dealership and when I complained to Costco, they said they do not run the program, it is operated by another company. Go through your credit union, they usually have a better program and sometimes have a person to accompany you to the dealership. Never again!!!!
I tried to use the Costco auto program way back in 2004 to buy my wife an Infiniti. As Costco promised, the Infiniti dealer they recommended did offer $2000 off MSRP (after much haggling). But I went to another, not-Costco related Infiniti dealer, who offered $4000 off MSRP. Then I went back to the first dealer (closer to my home), who, very reluctantly, matched the $4000 off. Being aggressive with comparisons was successful, NOT the Costco program. I haven't tried Costco again for the 3 cars I bought since then.
Found out it does nothing. Just a way for dealers to mark the cars up equal to the discounts and incentives and negates the savings.
The last new car I purchased I found the same item.
The Toyota dealership I was assigned to by Costco was high pressure and tried to push a car I didn't want.
The prearranged price was significantly higher for the car (not the extras) than what I was able to find thru True Car.
When I asked for a 2nd dealership just wanted me to come in. They wouldn't even confirm they had the car in stock.
Agree Costco program is highly suspect. Costco name brings a sense on confidence, but my guess is they are no different than Hoke Depot or Lowes who gets a referral fee for your name.
From experience, the Costco car program is crap. Don't use it. Costco makes these promises but have no teeth to enforce them if something goes wrong. Also that 15%off service work "coupon" is worthless because all the service dept has to say is that they don't accept it and there is nothing you nor Costco can do.
That's what most of our feedback on the Costco Auto Program says. No teeth to enforce anything leaves the customer up to the mercy of the dealer, and they don't get any!
So, if Costco isn’t all that great, what is the best way to do a factory order for a new vehicle? What should be the expectation for price below MSRP or vs invoice?
The comments are all over the place, some saying it's good, others bad. Someone needs to do an uodated video where they actually use the program. The market is different now and negotiated prices might be better now
I sold cars for about 20 years. The ' Costco ' price is a joke. Anyone can get that price and frequently the ' Costco ' price is more than what any consumer can get the vehicle for. Costco trained? That's a joke. Train them in what? It's a car dealer. That's literally delusional.
It is easy to believe the talk that dealers are stuck with inventory, deservedly so. The guys with the factories, adding value to raw minerals in the form of an automobile, were getting a small fraction of the profits after the market adjustments of the dealers who add no value to the process. Detroit's response was to cut production, so the auto dealers supply justified the huge markups. Unreal. Starve the whole manufacturing chain of revenue to keep dealers 70% markups safe.
I got a better deal contacting the dealer directly over using Costco
I can only speak to my own experiences about the Costco Auto Program. I first used the Costco program in 2004 on a Toyota Corolla. Since then, we have used the program to buy five additional vehicles with the program. My experiences have been great. However, the last Toyota I bought with the program in 2019, which was through an Autonation dealership, was unpleasant. It was long, boring and argumentative, especially with the Finance department. But I think think this experience was more due to the incompetencies of the dealership, sales people and Internet Sales manager, than the Program itself.
Here in Houston. Toyota dealer flat out said she would beat Costco's price. She did by almost $4k. So you decide.
Great feedback! Yes, it depends on the dealer. For some, taking the Costco Auto price might be the best option because that dealer is stingy. I'm glad you found a better dealer willing to work with you! It's proof that some dealers don't need the fake fees and garbage to sell cars. Go support good dealer!
BJs has a car buying program too. It is probably similar to Costco. I asked them once, and the dealer they were sending me to was on the other side of the state.
I bought my 84 Grand Prix though United Buying Service and it seemed to get me a decent deal but I had to order the car and I had to wait 3 months for it. Come to find out, it was put in as a stock order and not a custom order which delayed the deal. It was supposed to be $150 over invoice
Which state? Other side of Delaware... No biggie. Other side of Arizona... No deal. 😄
Your original assement was spot on based on my experience. The mandatory dealer add-ons were exorbitantly priced, far exceeding the benefit of the Costco price reduction and sent the total well over the MSRP. To give one example, the dealer added wheel locks for $495 while the Toyota car build website lists them at $65 factory installed. Such price inflation makes a joke of the 15% Costco program reduction for dealer add-ons (which brought their wheel locks down to a still whopping $420.75). Similar story for paint protection and theft prevention.
In the interest of brevity, I'm leaving out other examples of this dealership's sterotypical BS persuasation techniques.
I drove quite far to reach this Costco program dealership, passing several non-particiapant dealers who were actually giving better prices by simply selling at the MRSP. I'll chalk it up as a learning experience that took some time and gas.
It seems the car buying process will never change, which makes the reporting work you do all the more invaluable. Keep it up!
Thank you kindly! We greatly appreciate you sharing your experience and thereby validating our take on Costco. They may have deals on groceries and other stuff, but they should stick to things they are good at.
YOU ARE RIGHT THE PRICE I GOT FROM THE DEALER WITH THE COSTCO REFERRAL PROGRAM DID NOT HELP ME MUCH GET A FAIR PRICE. THEY OFFERED ME ONLY A $550 DISCOUNT FROM THE MSRP. IF I SHOP FROM OTHER DEALERS I CAN GET A MUCH MORE DISCOUNT FROM OTHER DEALERS. NOT HAPPY WITH COSTCO PROGRAM.
I didn't even know COSCO, of all places, sells cars. I hate COSCO as a brand, an idea, and an institution.
Costco
I tried to buy a car through Costco in 2020. I was looking for a Chevrolet Colorado Z71 with 4-wheel drive. Costco sent me to three different dealerships in the area to look at Chevy and GMC trucks. I wound up going with a 4-th dealer (Dave Smith in Kellogg, ID) because the "Costco trained" dealers just wanted to jack up the price on extras I didn't want or need. The Costco program wasn't worth the gas I spent driving all over town.
what do you think of the AAA car buying program.
Not one positive mentioned ... strange.
Don't believe Costco they sent me to the Lions den at Chevrolet dealership and I bought a truck that was for 32,000 at the end of the deal the price was 70,000 and they knew that I had covid totally screwed by Costco.
I wish I could buy a Toyota right from the website