I’m paranoid about getting scammed.
It’s almost to the point where I don’t even want to answer the phone out of fear I’ll accidentally blurt out my social security number to someone claiming to work at my bank.
When it comes to car buying, my guard goes up like I’m a schizophrenic at a CIA interrogation.
That’s why I was intrigued when I discovered an auto buying program at Costco. The company claims Costco saves members a lot of hassle and an average of $1,000 off a typical transaction price. It works like this:
Members choose the make and model they’re interested in, then Costco refers them to a local dealer who shows the customer the vehicle’s invoice price, the MSRP, and the Costco no-haggle price.
A no-haggle price with built-in savings sounds pretty good on the surface, but still my paranoia wasn’t eased by browsing Costco’s website. Digging a little deeper online, I found a lawsuit filed in January by a New Jersey woman who says the program is deceptive.
Her main accusation, according the paperwork, is:
The Costco auto program is misleading and deceptive because its “members only” price is exclusively defined in reference to the “invoice price” of authorized dealers. The Costco auto program does not control the underlying invoice price, and its participating dealers can and do manipulate that price in any number of ways.
A-ha! I knew there had to be something. Everyone knows dealers try to squeeze every ounce of cash they can out of people, so if there’s a price they’ll immediately accept, they must have a good amount of profit built in.
If you’d like to try getting a great deal another way, CarGurus can help. The article How To Negotiate a Great Deal on a Used Car can help anyone find and complete a solid deal themselves.
Would you use an online listing site to shop for a used car? Why or why not?
-tgriffith
Find great deals on Used Cars in your area at CarGurus.
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Bring along CarGurus’ mobile app to help check prices, find good deals, and research cars on your smartphone.
I purchased a car recently through the Costco program, unfortunately, and should have walked out before I purchased. Nothing wrong with the car, but they utilize unethical car dealerships and you end up spending A LOT more. I have purchased many cars on my own, but feel this is the first time I have really ‘been had.’ I complained to Costco, and after I did the leg work on getting some of my money back after I got roped into an extended warranty that was only good at the one KIA dealership Costco had in my area (an hour away). I told the sales person at the dealership I would only sign the papers IF I could get the car serviced at my local dealership. I signed and he had lied. It took months to get the extended warranty removed and the dealership was abusive and unethical. I kept Costco apprised of the situation and they continue to use this dealership. Guess both the dealership ad Costco are getting rich taking advantage of people.
Re: Costco v Truecar
I spent the weekend looking at Subaru Forester Limiteds. The dealership with the Truecar pricing provided a price that was $2000 above the dealership with the Costco rate.
Get a True Car Price, your Credit Union or Sam’s Club and then ask Costco for their price, you will be shocked at how much higher Costco is. I have a friend and a couple family members that tell me they will beat the Costco price any day, just get it and bring into their Toyota or Honda Dealership.
My experience through the program was terrible. I had multiple quotes from non-Coscto participating dealerships for a new 2019 Jeep Wrangler Unlimited Rubicon, and had to haggle hard with the participating dealership (Larry H Miller) to get them to even get there price down to the other dealerships. Then at the end they tried to tack back on $1000 with needles services that I had to demand not to get. Then afterwards when Costco wanted to hear about my bad experience after replying to their survey, I couldn’t get any response from Costco and they are the ones that asked to me to contact them. I called the Costco Rep twice and sent an email with no response.
I have hated dealing with the the Costco Auto Program and their “Certified” dealers. I wouldn’t recommend to anyone and would just suggesting shopping around and getting your own deal.
I went to an Audi dealer one hour away. Asked for the dealer price and they said they already had the cars discounted. They were not going to budge on the price. I did not buy anything. I had planned on put a large amount down and finance the rest. The salesman asked what I wanted my payment to be. I said, I want to know what the price of the car is. I don’t want to talk finance until I know the price of the car. He would not give me that figure. Put it this way you don’t buy a house without knowing the price. Why should it be any different with a car.
This article is 10 years old. Things change and improve!
I called Costcoauto.com and received the participating dealer information which was 3 hours away. The nearest dealer is 1 hour away and we already test drove a 2018 RAV4 and received pricing from them. Costco gave me my pricing, $1000 under dealer invoice!
Plus this dealer 3 hours away offered an exclusive limited lifetime power train warranty. Limited is to original purchaser. $0 deductible at this dealer, $100 deductible at any ASE certified shop. Only caveat is you have to have them inspect at 5 years (60 day window)
So I contacted the dealer 1 hour away and asked if they could beat Costco pricing? They said best they would do was $611 below dealer invoice. So we drove 3 hours and purchased the RAV4. Wife is a happy camper. Happy wife, happy life!
Thanks for the sharing this nice post… really it’s great post
This is a SCAM. The dealerships PAY Costco between $250 to $300 a fee for customer referrals. I had to deal with this scam myself recently. What a scam!
I tried to buy a new Toyota Camry and they referred me to a dealership 65 miles away. I live on Long Island and there are 5 Toyota dealerships within 12 miles of my home. VERY, VERY DISAPPOINTED!!! Dr Gary
Have you noticed that Costco warehouses are limited? I am sure there are at least five other grocery/clothing/retail stores closer to your house than the Costco warehouse. And yet you go to Costco. Think about it.
Why do you care how much Costco does or does not get paid. All that should matter to you is if you get a good price on the car you wanted. Did you expect Costco to provided this service for free?
Costco wanted me to drive 95 miles to get to their “authorized dealer with costco representative” out of state while 20 plus dealers were found within the 50 mile radius. I told the dealer that i checked their inventory and the car that i wanted was not even on their lot. I called up costco and they wanted me to still go ahead and transact with that same dealer. What a joke.
I feel like one of the best ways to get the best price on a vehicle is to email different dealers (in my case I emailed 8 different ones) and ask them for their best out the door price possible and compare prices and see if they can price match if the you feel that you need to go to a certain dealership. I also recommend using jelly blue book, Edmunds, auto trader, and truecar yo do your research. But do not submit your personal info as you will have countless phone calls and emails from some of those dealerships who retrieve your info. This has worked for me and hope someone can find this info of some use.
We got a Costco price that was $6000 HIGHER than a price 10 miles away from another dealership not with Cosco . it certainly is a no haggle price because we’re not buying from them and we will never do a Costco deal . I called Costco and they said “oh “ I explained that I thought maybe there was something wrong and they said no , was there anything else they can do to help me ?
I’m a car salesman that is Costco certified. The program is fair to the consumer and is designed to give you a “no haggle” price on the vehicle. If you want to spend hours of your time going from dealer to dealer to get a little bit better of a price each time? Go for it, please do not inquire through Costco and waste my time. Costco beats the other pricing services for it’s members as a benefit to them. The authorized dealer pays a monthly fee to Costco not a per car sold fee. The two most expensive things you buy in life is your home and cars. When you look at houses do you go to the owner and say “sell it to me at the lowest price”? No you make an offer. That is after you research house prices in that area and do your due diligence. Just like any other business a dealership is in business to make a profit.
Don’t waste your time!? Lol. Sounds like a typical salesman I dealt with using this program. I found the Costco salesman ignorant and acting like no one could match his price so I shouldn’t bother looking elsewhere. He didn’t bother getting back to me regarding questions. I ended up going to a different dealer and getting same car for about 1200 dollars cheaper with normal negotiating.
Buying a house is in no way like buying a car. In the home buying process there is transparency of similar homes sold and appraisals. The car buying industry has little to no transparency. Many car sale persons have absolutely no clue of how much a dealer makes on a car. Majority of dealerships start out trying to sell a car at MSRP instead of a reseasonable price. For this reason the industry will always be viewed upon poorly.
Amen!!!!
Sorry Gene but nobody feels sorry for you. People selling their home don’t make thousands of dollars from you for years down the road in the service department do they? No they don’t. I do my very best to make sure a dealership loses a LOT when they sell me a car and I tell them so “up front” so I don’t waste their time or mine and it seems to work “haggle free”. I’m going to service my car in their service department. That is where the real money is. Besides, too many other suckers fall for the “haggle free” garbage and the “nice experience” bull. The internet makes it too easy to get 10 dealerships to sell the ranch within 3 hours at the end of the month. Did I mention nobody feels sorry for you? Most people would realize you really aren’t saving them money if they spend the same amount of time doing research as they spend on facebook in a day. Good luck Gene.
Ha, that’s funny. You’re the guy who ends up buying the mis-ordered purple car with polka dot interior and wrong gears/options that nobody else wants. Thanks for cleaning up the aged inventory. loss leader.
Why did you have to go so low with comment. You lost argument and had to low blow to save any grace.
Cars depreciate immediately. A home, if owned long enough, will appreciate to one of
your largest assets. Totally different. Plus, as noted above, there is printed proof of similar house (sq footage, style, lot size) sales in the area and the exact price paid. And most cars are a commodity, most homes, even cookie cutter on outside, are unique on inside with various upgrades. And yes, when it’s a buyers market, I have purchased homes by offering way under asking and eventually (through a broker) saying “what’s the best price?”. With the exception of a few models, it’s always a buyers market in the auto industry. And then most dealers add on this BS Dealer Doc fee! Like it’s my responsibility for you to pay the overhead in your business. That should be figured out in sales price, for that sleazy reason I try to pay 3% under invoice. And usually buy the typical 120k/8 year warranty that is offered for $2,800 at $800-$900.
Im a real estate agent everything is negotiable. Cars should be the same. I want the best deal as a homeowner wants the best deal they can get. As an agent I inform my buyers with Comparable properties so they can make a good decision when buying the home. In my opinion, it should be the same for cars. So I understand why we as buyers must do our own homework on Cars as the dealers are trying to sell their inventory they have. I also don’t want a car sales person to asking what payment I want. I want to know the price first so I can negotiate with my lender the best price on financing.
And just like any other buyer, a consumer is going to want the best deal they can get. Sales people are the reason consumer have to spend hours and hours. Consumers don’t have to do that with houses, they make an offer and then go about their day or week. Dealers try all kinds of tactics that waste consumers time, like holding keys and complaining about profit. If you want more profit, work a job that pays better. Notice how the tone of my response matches your tone. If i walked into a car dealership and had you as a salesperson, i would ask for someone else to sell me a car.
I made my deal with the dealership and then said I needed a day to make sure I got the best price and shopped around. When I went to Costco that day to purchase groceries I saw a sign to check their auto purchase plans so I called and they listed the car dealer I was planning to use. When I went back to the dealer and agreed on the price I was satisfied and he started with the paper work I mentioned that I also had a Costco Membership and would like the discount on the agreed price. I got it and saved a great deal of money and was satisfied. I felt Costco certainly lived up to their claim and was very helpful in every aspect of my search.
This was a waste of time. I purchased a $43,000 vehicle through the Costco Auto Program, and was disappointed. The actual discount was adequate, but it wasn’t any more than I could have gotten at any dealership. This is new car #11 for me, so I’m not new to the buying process, and pretty much know what to expect. What made it so disappointing is that Costco claims they have only 1 Kia dealership in Ohio, so I had to go quite a distance from my home. I would have never purchased a car so far from home, for the same price that I probably could have gotten it from the dealership that is very close to my home. But the dealership didn’t even show us the price until about 2 hours into the process, and I just wanted to get it over with at that point. Now, if you are the kind of person who doesn’t have the guts to negotiate, then by all means use this program. But I will probably never use it again, unless the dealership is very close to home. And oh by the way, TrueCar.com indicates that I should have gotten it for less. That may or may not be true.
I’m enjoying reading all of these posters comments. There are a number of car buying services out there, so there is really no harm in checking each out. Costco is a good service, but read the details, since every car may not qualify for the best discounts. Shop around and compare. I didn’t see anyone mention The Car Pro Show price. No haggling and satisfaction guaranteed, and I don’t work for them.
Invoice, shimvoice!! The invoice you’re shown at the dealership is RARELY the amount they paid for the car. Ever hear of year-end holdbacks? Ever hear of hidden incentives to dealers that they don’t reveal to you? Manufacturers reward high volume dealers with kickbacks. Try this test if you don’t believe it: check internet prices for a few dealers that stock a very few # of units of the car you’re interested in, then check prices for dealers that stock 60-80 units. Most of the latter will be 1000’s less in price.
A gimmick like the Costco buying service may get you a price near the invoice, but it’s dollars to donuts you can do a lot better than invoice if you try.
I’ve been checking Chrysler Pacificas. The Touring model has a base MSRP of $31,490; the invoice is $30,660. I can buy it at any of several dealers for a hair over $24,000. A high end Limited with MSRP of $43,490 invoices at $41,820, but can be had for about $34,800.
So go ahead and congratulate yourself for buying at or a little below invoice. I don’t think you’re getting a great deal.
The deal I got was good but I had to work at it I joined consumers reports and was quoted price 10% less than Sticker .
I used my Costco car buying service found a dealer near my nearest Costco.
I went to the dealer identified by Costco found the woman identified to me as their Costco sales person took a test Drive then she wrote down their offer to me .
She gave photo copy’s of what could offer I told them I would work the numbers and get back to them .
I compared the consumers report 10% off and the Costco saleswomans 5% off and talked to the customer service person at the Wharton nj Costco they told they were not involved but to call the car buying service.
They were polite and helpful .
I called the Costco car buying service and explained the situation and that I had told the car dealer .
The Costco car buying service identified me by my Costco member number . We went over the car I specified Costco car buying service if the car dealer they recommended had given me a copy of the dealers offer and Said yes . Then the Costco car service asked if the car dealer had given me the official Costco buying service document identifying me as a Costco Member with my name priinted on the offer.
I said the car dealer had given me a copy of a blank piece of paper
Was Not the official Costco car buying document.
They told me to stand by and that they the Costco buying Service would talk with the Dealer I then proceeded to walk around the Costco store for 90 minutes until I got a call back .
The Costco car buying represented that the dealer might have been trying pull a fast one and said I should go back to the dealer for a better price so I did talk to the sales person she explained there was a mix – up and my new price was 13 1/2 % less than the sticker price which I then agreed To .
Three days later I went to pick up the car I spoke with the sales person that showed me the car I wanted in my color choice and then turned me over to the CLOSER who then tried to get me to pay additional 500 for key insurance Magic gloss coating and a couple of useless addons I refused all offers and got the car at the 13 1/2 off sticker price.
Never buy a car in one trip to the dealer , consumer reports cost me $20 to get a good ball park on the price and Costco performed in an excellent manner. Buyer beware there sharks out there
Thank you for your comment. I knew I wasn’t going crazy. The Costco referred dealerships were trying to get me in there without giving me the price. There are too many dealerships to go thru these types of hassles. I’m going to keep working on getting the best deal.
How are you able to get pacifica limited for about $34,800? Where is that?
Duane, I just started looking at Pacificas and am NOT experienced at buying new cars. Can you say more about how you found/negotiated such savings off of the invoice? Thanks for any tips.
I have bought 2 cars through the Costco program. 2002 Malibu and 2013 Camry. Both no hassle and at least $1000 below what an individual could negotiate. Called in the morning, drove the new care home mid afternoon. You must understand that the Costco pricing is for cars in stock at that dealer — which is why sometimes it’s far away. Dealers swap inventory nationwide so that is why the dealer or manufacturer website shows a lot larger selection, but it costs $500 to $1500 to get a distant car and you might find that cost as a nasty surprise when signing the papers. . There are good dealers and sleaze dealers. Like AARP, Truecar, Consumer Reports, Sam’s Club — Costco does not sell car, they rely on the dealers in the program to follow the rules. And some dealers don’t follow the rules — lowball your trade in, pad the car with paint sealant, scotchguard, pin stripes, etching the vin # on the glass, high pressure games where the novice salesman gives a too good to be true price, then the mean sales manager finds there was a $2000 error in your favor, threatens to fire the guy right in front of you, etc. All Costco can do is terminate bad guys from the program…I hope all the people with complaints contacted costco. But most of the complainers did not complete the costco deal..they found a better deal on their own. Can an individual person have more price cutting clout than $100 billion a year Costco.? If so, Costco would not even exist. .. All rebates, incentives, special financing come off the Costco price. The lower advertised prices you see always have a disclaimer ALL REBATES TO DEALER. And the rebates that should go to the buyer — and you actually get 100% through costco, go to the dealer instead and the cheaper price is only about 60 to 75 percent of the total rebates. I even see fine print where the advertised bargain price applies only if you finance through the dealer..if paying cash add $1000. Obviously the dealer is padding the finance charges by at least $1000 It’s safe to say almost all the people who think they found better deals actually found worse deals….
Hi all, around 11 years ago I did buy a Toyota SUV via the Costco “program”. I haven’t any idea if I got a good price but I thought it was a good place to start. Yes, they did manage to squeeze every dollar out of me that they could, running after me as I started to drive away in frustration. God it’s awful.
I think that the dealerships have a way to share info. on potential/active customers, and that may explain why one of the first writers here found that he got the same price with the Costco “program” as he got when he’d gotten to the bottom line price with the first dealer. I think they have a database and they all share the info. to make sure they don’t undersell each other.
I used the Costco car buying program. I was given a dollar amount for the car and trim level I chose on the Costco car buying website. It stated that I would get that price or a better deal from the dealership However, when I went to the BMW dealership, I did not get a price from them. I test drove a vehicle and was not ready to buy because I wanted to look at different vehicles from other manufacturers before I made a decision. So, I never found out what they would sell the car to me and they did not have a car with the specs that I wanted and could not find it in the whole US.
I did get several emails from Costco asking how my experience went. I would call Costco to let them know what happened if you had a bad experience. The website says they select dealerships who meet strict requirements so Costco should be told about any bad service you received.
As always reading thru many comments is very interesting! AND there are many for and against the plan or item or store. Still it is educational!!!!!!!!!!!!
Step up and discuss and ask good questions!!!!!!!!
Best of luck!!
Bought a Chevy Malibu 2017 and didn’t even know about the Costco program even though I’m a member but the GM dealership said I would be getting a Costco gift card and ended up getting the gift card
The gift card helped but it goes to fast for spending at Costco
Costco is expensive and half of the time I spend it on gas and tried not to get too expensive food or items
For the gift card and said to myself what the heck did I spend it on and have nothing to show for.
I agree with your conclusion “I admit, I was impressed. I came to the conclusion that programs like Costco’s just might be worth it if you’re the kind of person who cowers at confrontation and despises negotiation. The deal, at least in this case, wasn’t too bad!”
Howmany of us have the information, courage and patience to deal with these sales people and their dirty tactics? For common man who wants to save time and not to be stressed out, this is worth trying. You always have an option to walk out if its not in our favor.
Costco is good at selling cheap imported products, which are usually a better deak than going to target, etc…why costco would get involved with car dealers ( traditionally sleezy, liars) makes me believe than costco is in it for the money (kickbacks from the dealers). Costco stands behind their products because they buy bulk but the auto purchase program is a scam because coastco does not run it, the slimy dealers do…BEWARE
Looking at 2017 Mazda CX5 Touring and 2017 Hyundai Tucson. Dealer price when we visited to test drive and Costco price they quoted after I emailed about costco price is as noted below.
2017CX5 Touring: $25,312 quoted during visit (no negotiation- this is just the upfront price they quoted)(different dealer than the Costco auto partner)
Costco Program quote: $25,400
Tucson: $20, 500 quoted during visit (no negotiation- this is just the upfront price they quoted)
Costco Program quote: $20, 150
Was this with any packages? What was the out the door price? I am in the market for the cx5
I started by looking at the
Honda CRV. I submitted a request and I end d up knowing the dealership. They are known for not liking to haggle. It’s a take or leave it and they feel because it’s a Honda they have the upper hand. I actually had purchased (non Costco program) years ago. When I wanted to trade that vehicle in they didn’t care I was a return customer and the deal was awful. I said we would walk and the rep and sales manager told us “go ahead. We sell Hondas. I ended up going to Nissan and haven’t looked at another Honda since 1991.
But now I need an amazing deal. I know what Consumer Reports thinks of the vehicles and Honda isn’t at the top.
What I wasn’t expecting was that by asking about the Costco program that I would be called by 3 different sales rep-8 times in 36 hours. I was home sick with laryngitis and couldn’t talk. So I wrote them and it was the craziest, most off putting experience. These sales reps were climbing all over each other. Then the sales manager starts send me stuff. I asked what the lease price was and was told “I’m not sure I know what you mean” seriously!!! Don’t know about lease price? He had already quoted the total, end price, walk out the door price. So the sales manager was probably iratated that he now had to give a better price since he had already showed his cards.
Anyway, I haven’t even driven the vehicle yet and I don’t even know if I want to. I hate the stuff they were doing. When this one rep called and asked if I had talked to anyone yet, I said yes. Instead of leaving it, she starts in about have I gotten the price in writing, have I signed anything, and I couldn’t get a word in. And being sick and having such a hard time communicating just made all of this a nightmare.
I have no idea if Costco knows that this is what’s going on. It left a bad taste in my mouth about Costco and I normally love Costco. I think I’ll try Toyota and not you the Costco program.
I know what you mean Elizabeth M. We just purchased a CR-V from a local dealer whose final price including my trade was $4,000 less than what the dealer that Costco was going to refer me to quoted me as out the door. I couldn’t believe the difference. Costco’s price from them surely wouldn’t be much better. They were the dealer we bought our last Honda from and they definitely are not loyal to their previous customers. Every other dealer we went to whether it was Honda or not offered us more than double for our trade.
I also had a real bad experience with trying to buy a new Chevy truck. Called two or three dealers and they would not give me any real information unless I would come in and go through all the sales games. At one point the sales person hung up on me. I called CostCo and they just didn’t care and wanted to just push me to another dealer. Did everything on my own, got a great deal and just paid cash. I love CostCo, this program is a scam. I don’t trust them. Do your own homework and make your own deals.
I just purchased a new Subaru Forester through the Costco program, and got the exact quoted price. I had to drive 90 miles to the dealership, but they were perfect! I am very happy with my experience! IMHO, the dealerships some reviewers are dealing with are the dirtbags, not Costco. The one I bought from did everything exactly as Costco presented.
I agree Costco isn’t a dirtbag. But my question for Costco is why are they letting their auto program get tainted by some bad dealerships. Ones that claim they are giving a good “Costco” deal.
One review I read the deal was $300. And the person had to drive a long distance and the whole thing wasnt as easy as it should have been.
My experience so far doesn’t make me think much of Costco and I love Costco.
Hi, I am looking for a Forester now…how do you like it, and which option did you get? May I ask how much you paid with the program? Thank you so much.
I just bought a Subaru Crosstrek using Costco auto program and couldn’t be happier. The price is better than TruCare price and I saved a lot of time. Great experience!
I am looking for the similar car. Can you please share which trim and what was the price?
I am considering buying a Subaru Crosstrek limited. And I have been trying to find out what the Costco price would be before asking the dealer to show it to me. Would be willing to share with me the crosstrek that you bought and what you paid for it. I am a also a Costco member. Thank you
Hi, I am planning to purchase the same car, would you please tell me which model and how much did you get it for?
I agree with the people that were disappointed with the Costco Auto Buying Program. It was more like a bait and switch than anything. Nothing seemed to be like they originally said–nothing! I feel very sorry that I went this route.
Anyone have experience with the Costco Auto Buying program in the Columbus, OH program when looking for the highest trim level of a Honda Fit or a Subaru Impreza? I’m a pretty tough bargainer, but haven’t had to buy a car for a number of years so I’m probably rusty ?.
If you haven’t bought those particular models, but have bought Hondas or Subaru through the program were there dealerships that were helpful or a waste of time.
Thanks in advance.
Sue
The Costco Auto buyer is through Roush Honda in Westerville, OH. Idk the Subaru dealer.
I recently use this car buying program. I’m not impressed at all and rather highly disappointed in Costco partnering up with GM to get their members to walk into GM dealerships to get scam by the car dealers. I went into a Chevy dealer and specifically asked for Supplier Pricing. The price came back to me was $2000 more than what Truecar.com was offering me. Bottom line, this program is a bait and switch. You will not get any special pricing at all via this Costco GM partnership. This is just a gimmick to get you into a GM dealer. Once you are in there, it will be just another bad car buying experience in negotiating with them. I hope Costco will do something about this bait and switch program by GM and its dealerships.
For us, the Costco program worked well – but at the same time we knew that no company will look after your interests like yourself. We used Costco to get a very nice deal on my wife’s new 2014 Camry Hybrid. The Costco price was a bit above invoice, and was as good as the internet quotes I got from dealers within 100 miles (we’re in Tucson and bought from Precision Toyota, but had contacted dealers in Phoenix). During this process, though, she also looked at the Accord (Honda dealer right next to the Toyota dealer) and his Costco price was just $500 under MSRP! Said Costco didn’t allow him to go any lower (we giggled) so we thanked him and left. I am amused at comments saying people are disappointed that the price was not the true dealer cost (because dealers wouldn’t be in business for long, would they?). All the Costco price will do is give you a starting point, and in some cases may be acceptable (it was for us – we didn’t have to drive 200 miles round trip to Phoenix). Since it can’t hurt, and can only help, I don’t know why people who are members don’t use the service.
I had a poor experience through Costco. I can, in fact, get fleet/supplier pricing through my employer and through USAA membership. Those prices are the same (or maybe less) as what Costco related dealerships offer. I used the Costco referral because I was suppose to get a $700 Costco gift card promotion. I was considering several cars and got referrals to several dealerships with Costco relationships. However, the vehicle model I picked ultimately did not qualify for the $700 promotion. Costco did a poor job of advising me that the promotion was only for certain models. Also, Costco hasn’t been at all helpful in trying to resolve the situation or make me any offer for the sake of good customer service. I ended up going 1 1/2 hours away from my home to the “Costco dealership” even though there is a dealership 3 miles from my house. If I knew I wouldn’t get the $700 Costco gift card there would be no reason for me to go 1 1/2 hours further. In fact, the monthly lease payment at the Costco dealership ended up being $8 more per month then I would have found locally. The Costco auto customer service agent told me they could supply with a discount coupon for 50% off service. That’s ironic because I just bought a new car that doesn’t need any service, but also because I can log on to Costco auto and print out the discount coupon for 50% off for service.
Perhaps Car Gurus should check with someone other than Toyota and Honda owners. The program between Costco and Cadillac that is currently available is 100% above board and you will hear NO complaints from anyone that uses it or has used it in the past, members even get a $300 to $700 gift card from Costco if they use their membership to redeem their special price. All of the groaners on here don’t know how to read OR negotiate
I agree with you 100%. I recently purchased a 2016 Cadillac Escalade ESV and thanks to Costco I got a great deal! Without Costco my payments easily would of been at least $100 higher
This program is a scam. It is just different form of bait and switch. That car isn’t in the program anymore. They want you to buy on lot. The Costco Rep is just a guide.
Look people, this is as good at as it gets with car purchases. You can do what I did as a executive member. I got the quote on the new Toyota, thing was the dealer at that time was 90 miles away across two counties. No way was I driving 180 miles round trip. I went to the local Toyota dealer, built the same vehicle and started to negotiate. After not getting anywhere close to the Costco price, I finally offered 100. Less than the Costco price. Said take it or I’m gone. They asked about the price, told them that I’d purchase through Costco. They came back 100. Over the Costco quote. I took it, and saved a 180 mile trip. I plan on using this on my next purchase.
I just purchased a new 2016 Ford Flex through the Costco program. I figured I saved about $1500 over what Kelly Blue Book said was a fair price to pay. The only drawback was I had to drive 50 miles to the nearest dealer involved in the program and since the car I opted for wasn’t on their lot I will have to go back in a few days to pick it up. When comparing prices you need to make certain you are comparing apples to apples. Vehicles come with so many different options and packages you may not be comparing identical purchases. This can be tricky so some folks who don’t believe they were offered a good deal may be a bit off in what they are actually comparing. I would recommend any Costco member to at least consider the Costco option. I didn’t ask for a quite over the phone so I can’t speak to that issue.
I had a great experience with Costco auto program. We went into an local Mazda dealership (Walker’s in Renton WA), showed the salesperson my card, test drove the car we want, he displayed the Costco price sheet. It was $400 below invoice, plus took another $1500 discount due to their promotion.
So the final price we paid was almost $2000 below invoice, they even detailed our car for free! Since we came with a 13 month old, he gave us a free rental car to get home and then he delivered our new car to our house an hour later with balloons!!!
Of course I got lucky since our car’s Costco price is lower than other popular models, but I certainly enjoyed the purchasing process and I will recommend it to everyone.
I just bought a 2017 Toyota Camry LE from Livermore Toyota Dealer thru Costco Auto Purchased Program last Labor Day (09/05/2016) where they offered a $2500 rebate for a new late modeled Camry (2016) and $2000 rebate for a new 2017 Camry “plus” Costco member discount and Labor Day discount. Bottom line, I was able to get the whole discount by exactly following the Costco Purchase Program instructions.
By the way, thanks a lot to “MAGALE” AND “ANITA”…
Should you have any question/s, just throw me a message at er31naldo @gmail.com and I’ll be happy to guide you.
In 2005, I bought my new car through the Costco buyer program. It did not require an upgraded membership for Los Angeles area residents. The price I got was lower than my credit union broker could obtain. She was surprised my price was about $200 less than hers.
I did a lot of research on the car I wanted this time. In filling out the application online, one of the choices through Costco included a special optional safety package which I was willing to pay for. Costco had already negotiated a price for that. My price was $500 below the invoice cost, $2657 below MSRP. The exact car I wanted was on the lot in Glendale, CA, and the Subaru had a special interest rate of 0% for 48 months. Although I was just planning to test drive the car, I bought it. I am entitled to complete the Costco survey to obtain a 50% off coupon for $200 off service and parts at the dealership. In addition, they have a 15% off deal for service and parts. The people at the dealership were very polite and didn’t pressure me at all. They showed me the invoice and showed me the price sheet without being sneaky at all.
Over the years, I’ve told others to try the Costco program. Those who did later told me they loved it and would recommend it to others.
That is odd, I am also looking at Subaru, and the Costco price I was quoted from the antelope valley dealership was $500 ABOVE invoice, and $300 more than the quote for the same car from the santa monica dealer with their ‘we can do better than the Costco price’. The MSRP antelope valley lists for this car doesn’t match the msrp on the Subaru build your own webpage, OR the msrp listed on the Costco site (Costco matches Subaru build your own). And my original email with this dealership they told me the Costco price was $275 over invoice. So I am not sure if this is dealership shenanigans, the online sales guy is an idiot who thinks I can’t do math or research, or there is other equipment on this car that they didn’t tell me about. In any case, I am unimpressed.
We are deeply disapointed in the Costco Auto Buying Program. In all honesty,..it is Usless, Wastefull of Time and SHAMEFULL THAT COSTCO DOES BUSINESS THIS WAY!!!
– I will NEVER RECOMEND ANYONE TRY THE Costco Auto Buying Program.
– The nearest Toyota (Costco Authorized) dealership to Deleware, Ohio is about 145 miles away in Cincinnati, Ohio…(Beechmont Toyota) “Save With Dave” (David Roth – Fleet Manager) WHAT A SAD JOKE!!!
– When talking on phone with dealership, they refuse to provide to you a Costco price sheet. They only give to you what they represent as their factory invoice.
– When you ask to find out/figure out the payment,…they insist that they are not allowed to do that over the phone. You have to drive the 145 miles to ask them face to face.
– When you get there, they tell you that they will only sell the car to you for $100 less than their invoce…(NOT DEALER COST).
So you end up spending half your day, driving nearly 300 miles and spending 30’smthing dollars in fuel…(for what,…$100 dollars?!??!!!)
Oh yeah,…you get down there and they dont have the car in stock (Forgot to mention that to me before I drove all that way/WASTED MY TIME),…and that since they do not have the car in stock,…they dont have the actual invoice for the car. AND SINCE THEY DONT HAVE THE ACTUAL INVOCE,…then they cant show you the “Costco price sheet” for the car. WHAT A SCAM!!!
Once they come up with the pricing (Your SPECIAL COSTCO Pricing),…its nearly $80 MORE per month than the deal we had arranged down in Columbus, Ohio!!!
Stait Up – Point Blank,… The “Costco Auto Buying Program” is as sleezy, if not sleezier than its “Costco Authorized Dealers”.
Completely Worthless WASTE OF TIME AND MONEY!!!!!!!!!!!!!!!!!!!!!!
We are in the process of choosing a new Hyundai and I have been gathering current prices although we will not be actually making a deal for almost 4 months when our current lease expires. The local dealer sales rep asked if we were COSTCO members and showed me a current list of hard COSTCO discounts by model and year. We were eligible for flat $500 off on top of the laundry list of other running discounts.
I found the car I liked at a local Kalamazoo, MI dealership and called the Costco auto program number and registered. I got a call from the Costco authorized dealer in Elkhart, Indiana some sixty miles away in another state! So much for their membership buyer program, it was absolutely worthless! I would have traveled to a neighboring city with a dealership, but not sixty miles. Their program is an insult to members who pay a premium to obtain their membership.
Have gone through this program. Not found it worthy. You can get better price if you shop around. The really bad experience was at the end of the deals when I added accessories. They charged me over the price quoted by them and when I asked the dealership about the discount then he emailed me that they have alredy discounted the price and not included in the bill. They raised 30% over the bill and emailed back that this is the discount you get. At the end they charged me more then the price quoted even after giving the discount.
I went to a Keith Pearson dealer in Orange park Florida and was dismayed by one of the sales manager tactics who wants to charge with more using the MSRP posted in the car($40,000 +) and not the actual price range showing in the COSTCO site. Even mentioned that the CEO of COSTCO is the one who negotiate the savings i’m supposed to get. I left and bought a car from another dealer.
Costco Auto Program is a big waste of time.
They have me going all over San Diego to visit dealerships that don’t honor the Costco Auto Program Pricing and dealerships that don’t have the cars they have listed on the Costco Website. I called into the Auto Program and the Reps were unhelpful and rude.
I do not recommend the Costco Auto Program.
I am bit skeptical of the Costco program. They work for the local dealers in your area, and don’t necessarily have your best interests in mind. I am an Auto Broker, I have been able to beat almost every Costco price that has been put in front of me. Good Auto Brokers focus on only the best price possible, not enough just enough to catch your interest.
I couldn’t wait to purchase a car through the Costco Auto Program. Unfortunately the only Kia Dealership that participated in their program (near my location) turned out to be a dishonest and deceptive.. Purchasing a vehicle from YONKERS KIA has been one of the worst experiences ever. They’re buying incentives were fraudulent and misleading.
Typical bait and switch practices. Costco should be more careful of who their participating car dealers are. Make sure you read all dealer reviews before using the Costco auto program.
We tried the Costco car buying system but the dealer was cagey on the actual invoice amount and also tried to leave out a factory $500 cash back offer. In the end, we had to resort to old fashioned car price negotiations just like always. For our next car we’ll check TrueCar and Kelley Blue Book for a good price and negotiate for ourselves.
@ Costco Auto Program
Hi, @costcoautoprogram!
I just had a dealer referred to me by costco tell me the car I wanted isn’t part of the program. What? It was on the Costco list online… What to do?
Hello, we filled out the online Costco deal and was contacted by the San Tan Hyundai dealership in Chandler, AZ. We were looking for a certified used car. We were there 5 hours. we told them the amount we could spend monthly and they kept trying to put us in a lease for a new car and never mentioning the Costco deal. finally we pursued a used car and got a pretty good offer for a used 2013 sonata. The paperwork was done and I was asking what about Costco deal? Sales person said oh well this is a better offer. She stated it would be $500 under a published price (which none was published for this car). After comparing to other dealerships, the cost we paid is close to what other dealerships would charge, but I went away from that experience wondering about the Costco deal.
I tried using the costco buying program at their recommended Toyota dealer in Puerto Rico. I worked backwards i got their quote and final price then i went to different toyota dealers. I negotiated a better deal at two out of three toyota dealers in the area and i went back to the costco preferred dealer and they declined to lower the price. The tag and title was $250 more than other dealers and the extra add ons i wanted were $500 over. Don’t fall for this scam .
I upgraded my Costco membership to executive to get the car buying option. I had been working with a dealership but I wanted to best deal. I had a quote from San Tan Honda.. Costco sent me to Superstition Honda. The amount from Superstition Honda was higher. Showed me the invoice and the Costco agreement but what they aren’t telling you is that everything is a add on. I showed the quote from San Tan Honda and Superstition Honda matched with accessories but they were not happy. I bought the car from Superstition Honda as they had what I wanted in stock but wish I had dealt with San Tan as they were honest and w/o their quote I wouldn’t have gotten the best deal. Costco called to survey me on how the car buying experience went. Costco rep said they were sending me a coupon % off to use to buy accessories but that has never materialized. I upgraded my membership, paid Costco the difference to use the car buying but would recommend anyone looking to buy a car to compare dealerships or check online to know the cost from other dealerships so not to get taken. Costco isn’t always the best deal.
@ John W
Forgot to mention we still did NOT buy the vehicle from Elgin Toyota. We felt that since they were snaky about the Costco program and tried the old dealer trick of tying you up for hours to break down your conviction, we couldn’t trust them and they didn’t deserve our business. Same with Grossinger Toyota and Arlington Toyota in the Chicago area. We DID buy from Naperville Toyota, they were far from home but very good to deal with. We felt respected in the transaction and that our business was appreciated. We still do to this day.
When we shopped for my 4Runner we found that we could do better on our own. I’m not afraid to haggle with car dealers. Some people don’t like it and the pgm is good for those people BUT expect not to save as much. That’s OUR experience. We got the run-around on the pgm from Elgin Toyota in Elgin IL, they made us wait 45 mins while they dinked around. We were just going to leave when they gave us the Costco price. I then asked “what’s YOUR best price, without the Costco pgm?”. Their best price was about $2000 less. Waste of time. I see they have a Chevy Silverado promo right now, discounting the $58k vehicle less than 10%. You can typically do much better unless a vehicle is in high demand. We got our 4Runner for about 16% off MSRP. This is my experience yours may vary. Costco is great for some stuff, NOT for everything.
@ Austin
Please contact us. We are very sorry to hear about your experience. Our dealers must follow strict guidelines when working with members. In rare situations, when a member has an unfavorable experience, we do have processes we follow to ensure it doesn’t happen again. If you would call us at (800) 404-5623 to provide more details, we would really appreciate it.
DJ at Costco Auto Program
Costco Auto is a joke. I brought my price given to me by Costo Auto rep to the dealer throw it in my face that Costco was terrible and they refused to price out the vehicle to the site. This has been by far the worst buying experience to date. Costco you seriously need to put a leash on your dealerships or “partners”.
We bought my wife a Nissan Sentra not knowing about any special Costco price. When the salesmen noticed I worked at Costco on my credit check they came up to me and said they were taking a 1000 off the price. Pretty cool of them considering I was non the wiser.
I’ve tried Costco twice. Once in October ’15, and again a few days ago. I bought a Honda CR-V through Costco for a fantastic price, in and out. Most recently though, I attempted to purchase a Nissan 370z using the Costco buying service. Bummer. There’s no Nissan dealer within 40 miles of me (I live in a densely populated area, and there are Nissan dealers all over.
I ended up attempting to use Truecar, where I found a great deal! Except it was a bait-and-switch. The dealer I bought the CR-V from in October is no longer associated with Costco. Shame.
To AJ…thank you for your tips. I actually bought a new car a couple of weeks ago, from a dealership that gave me a really good quote a few months prior. The salesman never haggled me, just gave me time to let me do my homework. I went back to that dealership because I honestly thought this salesman truly deserved it. I thought I got the best price possible, along with some extras. I am now getting ready to finally call to speak up about my experience with Costco. I just hope I can help others get a better Costco experience.
@ Tricia
Tricia, totally understand what you went through. Costco Auto is no good. Here is what you need to do. Find the local car dealers in your area and get an internet quote from them. Give them a temporary phone number and email to them. Compare the price quote to what truecar.com provides. You should be able to get the price from the dealer lower than what truecar shows. If you are flexible with the colors etc, you should be able to bargain some extra add ons at no cost (provided you make your decision quickly – prepare yourself for this opportunity). I got 4 dealer add ons for no cost because I was ready to purchase a vehicle that was in stock and it was my second preference for color.
All the best.
@ Tricia
Please contact us. We are very sorry to hear about your experience. Our dealers must follow strict guidelines when working with members. In rare situations, when a member has an unfavorable experience, we do have processes we follow to ensure it doesn’t happen again. If you would call us at (800) 404-5623 to provide more details, we would really appreciate it.
DJ at Costco Auto Program
I have a few comments regarding the Costco Auto Program. I recently tried the program, but decided to buy elsewhere. My experience was not positive and here’s why:
#1–the apparent “local” dealership advertised in their literature was almost 40 miles from my home. If I bought a car from that dealership, they “prefer” you to have your car serviced there.
#2–I had to wait nearly 40 minutes, then was told my paperwork would be started with another salesman. Apparently, before my appointment, the “Costco” salesman took a walk-in customer. COSTCO CUSTOMERS ARE NOT TREATED ANY DIFFERENT! Even with an appointment, YOU MAY HAVE TO WAIT!
#3–The “Costco” price looked good, but there were hidden charges. I was offered an 8-year warranty for $3750…hello? This car came with a 4 year warranty, so I was going to pay $3750 for a 4-year warranty? NOT!
#4–After doing my “homework”, I knew what my trade-in was worth, and to them, it would be a wash…NOPE! I had equity in my car!
#5–The dealership was very high-pressure. I knew going in, I would not be buying a car that day. Both the salesman and finance manager HAGGLED me, continuously while I was there, on my way home, and to this day (two weeks later) I am still getting calls trying to get my business. (Thank goodness for caller ID!)
This experience has me wondering about Costco in general. It is apparent with this blog, that Costco does not have their Customers’ best interest in mind.
In April 2015 utilizes the Costco program for my wife’s Aunt. Went to Global auto dealer Route 22 West and purchased Kia Soul fully loaded with no down payment, $311 per month for 72 months including gap insurance.
@ Steve
I want to add the name of the dealer and salesman if possible… Charles Maund Toyota, salesman– David Hardy.
We bought a 2016 Toyota Prius through a Costco associated dealer. This is the 1st time we used Costco and we found the experience was a perfect match to our temperament. The salesman was honest and forthright. The price was $1,000 cheaper than that offered by another local dealer. And, we didn’t need to negotiate. I suspect with a car like the Prius (high demand for the product) that the Costco deal is a good as you can get. It helped that we knew exactly what we wanted when we arrived at the dealership, and I suspect it helped that we paid cash. THere was no mention of extended maintenance agreements, which I appreciated. We drove our brand new car our of the lot in less than 2 hours. (It was the only 2016 Prius on the lot at the time, and happened to have all the features we wanted, with no extras we didn’t want.)
Useless program – I tried to get a quote on a Honda. Costco dealer quoted me for $25,000 with invoice price of $22,500. He added useless accessories – something I kept insisting that I didn’t need. Total savings on the invoice price from Costco was $50. Total savings of 0.2% (on invoice)
I tried other Honda dealers and I got a out of the door price of 23,300. All dealers in my area gave me a quote lower than the Costco dealer.
Costco Auto program called me back after the survey with lots of promises. They are the best and shadow prices yada yada. They mentioned that they will have the dealer call back and rectify.No calls after that.
I went with the best price I got — $23,300
@ Herb
Hi Herb,
We are very sorry to hear about your experience. Our dealers must follow strict guidelines when working with members. In rare situations, when a member has an unfavorable experience, we do have processes we follow to ensure it doesn’t happen again. If you would call us at (800) 404-5623 to provide more details, we would really appreciate it. The team here at Costco Auto Program is happy to assist you at any time during your auto buying experience.
DJ at Costco Auto Program
I had poor experience with the Costco program. The designated dealer rep emailed right away but that was the beginning of very poor customer service. I arranged a meeting with the dealer rep via email. When I arrived at the dealership the dealer rep greeted me with a rude comment that he was very busy that today with multiple appointments and that I wasn’t one of them. Seriously? I had the email with his confirmation of date and time to meet. His other apparent customers apparently weren’t around so he met with us then showed us a car to drive. After the drive we asked him if there were other cars to drive. He said that they would get some in tomorrow and he would call us. He asked that we email him with the exact configuration we were looking for so he could help us get that car. That was the last we heard from the dealer rep until a month latter when he responded to our email saying no cars were available. Poor service.
This program is not good. Dealers are suppose to call you for an appointment. Didn’t happen several times. Third time went through my bank who uses the same agency that Costco goes through. The sales rep said I would get a better deal with the Costco program. I was emailed a survey for the dealer who never contacted me which would include special coupons. Since I didn’t get a referral for dicks Honda of Hillsboro from Costco , the Internet manager mindi, denied the request to honor my Costco purchase through them. While the service rep, through the auto program, was very nice, I feel she could have tried a little harder.
Hi everyone. My son and I are just starting the car hunt. We have requested many quotes from Costco as you are required to pick the exact make and model. I did learn that with the Costco program they may not be able to offer a lower price as it is a no haggle program. On the up side we are able to combine the Costco program with the 3500 incentive and the Honda interest rate of 1.99. Without the Costco program we would have to choose one or the other, 3500 or the low rate. That being said it was a phone conversation. We will see what really happens. We are torn between the Corolla as it is a 0.0% rate and the Honda EX-T (turbo) as this is a commuter car.
Costco Auto program is worse that worthless. Crappy dealer now plaques me with email, Phillips Chevy Frankfort IL. Save $1000 on a $40,000 car is not why i pay membership at Costco.
This program is a fraud.
In our case Costco did not provide anything close to an “exceptional auto buying experience”. We arrived at the dealership with 20% down payment and a trade only to end up with a zero equity position in the vehicle after the F&I manager hid a bunch of extended warranties in the payment.
Never again with Costco. Our previous buying experience was through a Credit Union program which made sure that we were not in an untenable position financially at the conclusion of the transaction since they provided the loan.
I highly recommend that all car buyers try the COSTCO service. Her’s my story: I am a sure negotiator. I have sold cars. I used to use AARP or Edmunds or Trucar to get my best deals. This year I used Costco Auto buying service and got a much better deal. The program is based on going to the showroom and meeting with the Costco trained rep. The reviewer didn’t follow the procedures. Once in the showroom they show you two pieces of paper. The dealer “invoice” which they keep and your COSTCO cost which is yours to keep. They don’t try to coerce you to buy that day and you are free to leave. No Hassles. (Contact COSTCO if they don’t treat you properly!) After I go
The closest dealer to me who is on the costco auto program is a 40 minutes drive. They were impossible to get a price out of on the phone. I was tough, yet polite, about not coming without knowing their “negotiated price” but didn’t get anywhere. Thinking it’s got to be worth my while I went down and was very disappointed. I then went elsewhere near my home and negotiated $2900 less then the Costco price!
I am again shopping for another car. Costco is sending that one and only dealer to me but I won’t bother.
Because I’m not fond of haggling, I emailed both AAA (Auto Club) and Costco for membership specials. Both sent me to Norm Reeves Honda in Irvine, CA. The Costco price was many times better than the AAA referral price. I bought the vehicle this past summer for the price I had budgeted from my internet research. Plus, Costco included additional discounts. I could not be happier with both Costco and the dealership.
I was disappointed by the AAA discount dealer’s price. If I remember correctly, there was about a $750 to $1,000 additional savings with Costco.
Despite the route of least resistance I took, reading, understanding and signing the paperwork still took about 4 hours – maybe, it just seemed like 4 hours.
This program sucks. The first dealership I dealt with told me the nearest car was in Missouri – over 8 hours away. I found a car in Indiana, but the “special Costco price” was higher than the price they advertised. I’m done.
December 3, 2015. I had two awful experiences at car dealerships that were Costco Authorized. Earnhardt Toyota in Avondale Az and Arrowhead Toyota in Peoria AZ. Let me just start off by saying I wasn’t expecting the greatest price ever, but I was expecting the types of savings I have come to expect when I shop at Costco. I went on the Costco Auto website and put in my info and was given the name of a local Honda dealership. I called the Costco auto buying dept up and asked if their was another Honda dealership closer to my work and they resent my information to another dealership. My evening started off with deception and high pressure sales tactics and ended up the same way. The sales/pricing managers at both places forged (i.e. created from scratch and put them on a piece of paper that they titled Costco Pricing” their prices and provided me estimates that were just a few hundred dollars off of MSRP (not Factory Invoice) on 2016 Honda Civic LX models with the additional Honda Sensing upgrade. I took pictures of the printouts from both of these dealerships when these people left the room. Online prices for the exact same cars just down the road at another Honda dealership (non Costco) were starting at around 2-2.5K below MSRP or within $100 above or below of Factor Invoice pricing for the new 2016 Civics. I contacted the COSTCO auto buying team about both incidents and then emailed them the pictures I took and screen shots of the local prices I found online from those other Honda dealers. Haven’t heard back from the Costco autobuying team yet. Something else of note was that when I was in the car with the first sales person (who wasn’t directly part of the Honda Costco program) he even said the price was going to be just under factory invoice and looked shocked when his sales manager brought out my “special Costco Pricing” which was quite possibly the highest price anyone had ever been quoted who wasn’t on a waiting list for a brand new model. I drove down to the 2nd dealership, which was the original Honda dealership Costco had sent my information to, the same night because I was so upset about my first Costco buying experience to see what their price was. I chose not to inform the people at Earnhardt Honda that I had just came from the Arrowhead Honda or what the price I had been given. I was still trying to give the entire Costco Auto Buying experience the benefit of the doubt. I love, love, love Costco 99.99% of the time…. until now. The whole point of the Costco buying experience, according to Costco’s auto buying website is that it is a “PREARRANGED PRICING AND AN EXCEPTIONAL AUTO BUYING EXPERIENCE.” By the way, the 2nd Honda dealership Earnhardt quoted me an extra $600 below what the Arrowhead Honda had, but informed me that this special pricing was part of a package deal and I would need to buy around $2300 worth of dealer added items to my car (e.g., tinting, something called auto caddy, nitrogen in my tires, clear plastic door guards, dealer installed alarm, etc). I don’t want to sound like i’m advertising for the other Honda dealership, but do yourself a favor and pull up all the local online Honda websites until you find one that has actually discounted prices for all their models displayed or try using Autotrader or Carguru online. I’ve decided that anytime the dealer website says I have to call or come in for special pricing it’s a bad deal unless I was planning on pitting dealer against dealer and haggling all day anyways. I’m going to post this comment in a few places and see if I am able to upload the pictures I took as well. p.s. I don’t blame the actual salesmen who showed me the cars. In both places they were actually very helpful and knowledgeable. Although I have most been meeting the awful type when I have gone to different dealerships just to look at new competing cars from other Manufacturers in the price range I am in.
@ Tnerb
did you use costco program to buy pilot (since dealer is not going down from MSRP due to very low supply)? I tried many dealers they are not going below MSRP. Now I decided to use costco program, if it can low MSRP for Pilot.
I am surprised at the number of negative responses that I see posted here regarding the Costco Auto Program. It would appear that whether it is a bargain or a scam, greatly depend on the dealer and how well it stays within the rules of the program?
My wife and I just purchased a 2016 Subaru Forester 3 weeks ago using the Costco program. We were originally looking at Certified Used, but with the Costco Auto Program, we were able to buy a new vehicle for around the same price as a 2014 Certified used. The Costco deal for the new car was about $3200 off the sticker price using the Costco Auto Program. Could we have done better than that had we fought tooth and nail? Perhaps, but there is something to be said for the no-haggle approach as well and our time is money also.
I have to say it was the most pleasant car buying experience that either of us had ever had. I dare say it was almost fun? The salesman called and asked us which car we were interested in, color, options, etc. He checked his inventory and had one that matched our requirements. When we arrived the car was detailed and ready to go. He asked if we would like to take a test drive of our specific car. We declined having already test driven a couple of them during the process. We then proceeded to fill out the credit app, met briefly with the finance guy to sign paper work, salesman went over our manual and the car itself, feature by feature and sent us on our way. There was no haggling once we were there, no up-selling, no trying to change the deal after the fact. Just very straight forward and simple. Not the slightest bit of anything that even vaguely smacked of scam. Straightforward and pleasant.
A day or two later I received a survey from Costco regarding the Costco Auto Program. Filling it out resulted in a coupon worth 50% parts, accessories and service up to a $200 discount. I took advantage of this to add body side moldings and front and rear bumper guards, which resulted in the full $200 discount.
You can also get subsequent coupons from Costo Auto Program for 15% off parts, service and accessories. I am not if you need to buy a car or just be a Costco member for that. I think the later since it “Applies to any existing vehicle in your household,” but maybe it only applies to other vehicles if you buy at least 1 new one through the program? I don’t know on this aspect.
Anyway, I guess it comes down to the dealerships and maybe the brand of car you buy? But our experience I would rate a 5/5 star.
The 2016 Honda Pilot has limited production and inventory. However, I was able to get a price very close to Invoice. I am going to reject dealer accessories (MARGIN generators) and focus also on getting a good deal on my trade. too bad the dealer is WAY TOO FAR from my house…. Trying to work out a delivery.
@ Juvernia
as long as there are laws that prevent me from buying a car online and having it delivered to my home- and forcing me to go to a dealer- I will say that your comments are obviously false. When that sort of body of law exists around hamburgers you may have a point. geesh you are dishonest.
@ Tim
yes the fleet guy does not do the pressure (duh) the “warranty guy” does. Have you ever bought a new car?
They still double teamed me and high pressured me big time. I had to get Costco on the phone- then the manager gave me a lower price, Well, why did they not give me the better price in the first place? and why did they double team me and do the dirty car dealer tricks?!?
Just an FYI – I see a lot of people saying they’re hassled, pressured or given bad deals…
You cant NOT speak to just any sales person. Typically it’s the fleet salesperson that handles Costco sales. Make sure you set up the appointment with Costco website/number and only talk to that one person. If you’re not being treated correctly just walk away. Pretty simple.
At Chevy/ GMC dealer today looking at a new car. They asked us, as they did everyone who came, if they were Costco members. Found the car we wanted… shown the “Costco price” …which was very good!. Halfway through the deal…. Sales manager came out and said the car we were interested in was not on Costco’s list and we would have to RE-start negotiations. THEN…. the dealer kept adding back in more and more money… including an $800 fee (that had not been mentioned before) for bringing the car we wanted from another lot. The MSRP was $42,000 (Costco price was $38,500) By the time they finished adding in all their extras… that figure magically jumped from $42K up to $49K,….no discounts or incentives . Plus on our trade-in they offered us $7500 on a car that had a low trade in of $12K WTH????? Hmmmmm….does make me wonder if Costco encourages dealers to play this game, or is this something the dealers have come up with on their own.
I just got off the phone with an “Authorized Dealer” and he stated that Costco did not have a buying program for the Honda Pilot. He said they were selling for the MSRP and nothing less.
Waste of time in my opinion.
We bought a 2015 jeep in February and we saved 3500.00 for being a costco executive member. Yesterday we bought a 2015 GMC Sierra we saved 3000.00 and we are receiving a 700.00 cash card from the costco auto program . This is not a scam! The way to do this is to get pre authorized by calling the 1 800 800 5778. They will give you a list of dealers that participate . Not all makes and models are in the program. Being a EXECUTIVE member really does pay for itself. Don’t just go gold star go for EXEUTIVE. Very happy COSTCO member.
As referred to by Patti in a previous comment, I am one of the “slimeballs” that sell cars. You are correct in an effort to stay in business, dealerships will attempt to make a profit. I will be honest enough to say that a lot of the tactics can be reprehensible but no one complains about paying $5 for a Whopper with cheese (no drink, no fries). Or when you purchase a mattress for $800 which could be as much as 60% above retail. With that being said there are many of trying to provide a service in a respectable manner. The reason people feel the way they do is because many don’t know much about the car they are buying or have anything that they can compare to know they are getting a good deal. using the Costco service will allow you to get a good deal without having to fight for every dollar.
Do your own negotiating. I used the costco auto program to set up two dealer visits in search of a mid size sedan with an MSRP of $26,100. The first dealer gave me a $1,200 discount off the MSRP, which I thought was a joke. The second dealer gave me a $2,600 discount off the MSRP, which I thought was OK.
Then, I went to a third dealer on my own (not in the costco auto program) for the same car/same options. I did let the salesman know that I had been shopping though the costco program and their first offer was very close to the $2,600 off. After about 90 minutes of back and forth negotiations, I bought the car at $5,000 off the MSRP. And, they added 5 years of free oil changes.
Do your homework and play their game. They really, really want you to buy their car. Use their motivation against them and to your advantage. And, let them know you are willing to go to another dealer to see their offer.
I’m glad I saw these comments! In Hawaii the salesmen just the same as on the mainland. Is that a prerequisite to becoming a car salesperson? Devious and scheming and like the person above described them as slime balls?
Please keep in mind that neither Costco nor any of the other buying services seek to limit the out-the-door price or financing terms only the so-called “price.” Dealers can and do raise fees and/or undervalue your trade-in to cover whatever incremental discount Costco requires on the car itself.
Use the Costco program price as a starting point for the car element of the deal. But then make sure you get multiple out-the-door prices that include trade-ins and/or down payments, all fees and taxes, and all financing options, including dealer financing, straight cash purchases, and lease.
Generally speaking, the discount of the Costco price off MSRP will be magically erased by the dealer via higher ‘processing’ fees, lower trade in values, higher finance rates or higher front- and back-end fees on a lease.
@ Mike
Spoken like a true car salesman . While Im at it you can go fuck yourself, this forum is for people to discuss their expericence with the Costco program not for some slimball dealer to vent.
The Costco Auto Program is not worth to try it. I called Costco to be assisted in buying Toyota Highlander 2015. A Costco so called “highly trained” representative sent me to a dealer who told me that this particular was excluded. Later on I found out that Costco was awere of it but sent me anyway. I guess they making money just have you go to a dealer. Do not waist your time. Very disapointed
The discount above (personally negotiated is 7.9 percent off MSRP. Costco’s was 6.8 percent. Now, small SUV can be pretty good sellers. My daughter just bought one (Toyota) with a 18.2 percent discount off MSRP. Her first car buying experience. Now I gave her my 2 cents worth so she had some preparation. I don’t consider upwards of 8 percent discount too shabby a discount, but…you judge.
The Costco auto program is a border line scam. They show you “Costco” prices that are lower than Msrp but the problem is that all those numbers are artificially inflated to begin with. I walked into a deal with Costco program and actually still ended up haggling with them and got the price down even lower than the Costco price. If I had just walked in with my Costco price I would have still over paid. I mean come on, why would the dealer be in it if they weren’t making money with this Costco deal.
I bought a car through the Costco auto program and it was the worst buying experience EVER! I am extremely disappointed that Costco referred me to these slime balls . The Costco brochure said, NO pressure, stress free buying experience…
Well, it wasn’t like that at all. The dealership they referred me to hustled me into a six year financial mistake.
@ Linda
Costco is awesome. You had a bad experience with one vendor, get over it. Ameriprise is actually a fairly reputable company. Liberty Mutual coverage forms are not good. You probably don’t know what you’re getting.
Costco’s Ameriprise insurance are the biggest scam artists I ever dealt with. Had Liberty Mutual for years and they quoted me a lower cost and I accepted. After making payments for 2 months on a 6 month policy they called me and said THEY made a mistake and were raising my premiums tto OVER what I was paying with Liberty Mutual. Bait and Switch and I will continue to complain. These people need to be put out of business. I cancelled and went back to Liberty Mutual and they STILL tried to remove money they were not owed from my bank account. THEY ARE CROOKS!! I will NOT be renewing my Costco membership and advised my restaurant owning son , other family and friends to cancel their Costco memberships – they are a rip off anyhow.
We went through the Costco buying experience and saved $2100 over the True Car website price and $1100 from another dealer we walked into. We were looking at the 2015 CR-V EX-L. The first price the Costco dealer gave us wasn’t as low as the lowest we found but he “went back” and came out with the $1100 under our lowest so we took it. The lesson is to to find your best price before you go to the Costco dealer and keep asking for a lower price until you are satisfied.
Call costco. They will intervene up to pulling that dealer out of the program. They really fight for their customers. They did for me. @ Ron Pennock
I agree. You ask for the pre-negotiated sheet which shows the dollars below invoice and that is the price you pay. If you ask for this and the invoice price, you are assured you are getting the best deal. Had one dealer that wouldn’t show me and I called costco and they referred me to someone else that treated me like a king. Got the vehicle for almost $4000 below msrp which was $1500 under invoice. @ Jeff Keith
Bought new car 3/1/15 using Costco Auto Program. Honda CRV AWD EX Popular model. Came down to which dealership had what I wanted in stock. Was told model could be traded from other dealers but I had to accept with whatever accessories were dealer installed. Trading or locate fee would be charged. We drove farther than we wanted to buy off of lot.
Costco reps couldn’t give me any prices. Reps talked about prearranged pricing and the infamous “Costco Member Only Price Sheet”. When I finally saw the Price Sheet it had no numbers on it. First page had a few sections. Under “New Vehicle Pricing information. Pricing Details” :
Costco Base is calculated from the pricing below and the amount of the manufacturer’s invoice for the vehicle. It includes the manufacturer-installed options, advertisements fee, dealer holdback, destination charges and other applicable discounts and fees. Dealer trade or locate fee may apply if vehicle not in stock. Additional fee(s) added to each transaction: $75 dealer fee.
First column is Make/Model, second column “Price” has either $xxx.xx under Costco Base, or Costco excluded, 3nd column “Factory and Dealer Incentives”.
Invoice prices were different at each dealership. All were quite a bit more than what I found on Edmunds and other sites. Hard to compare.
Did I save? Not sure. Costco pricing for model purchased was supposed to be $200 under “Costco Base”. Costco Base was hard for me to figure out. When I called Costco to say I made a purchase I was asked how much I saved off of MSRP. What a stupid question. Who pays full MSRP? Even I’m not that gullible.
One dealership made it sound like they were doing us a favor even considering selling at Costco pricing. Told us they made zero profit. Walked away because of finance person’s attitude. We bought expensive extras. That alone would have made our purchase profitable. Their loss.
I wanted certain accessories. Accessories were different prices at each dealership, some significantly higher.
Costco Member Only Price Sheet (with no prices) has a section on first page about Dealer-installed Items. It says “30% discount on any accessory found on Addendum Sticker” but no dealer was willing to honor that. One dealer was willing to give 10% discount on dealer installed accessories. I was told dealer-installed and accessories installed at time of purchase are covered under warranty but not if purchased later. Another dealer refused to give discount on dealer installed accessories but would give 15% discount on after purchase accessories. That dealership was listed with Costco as offering 15% off on accessories and service. Not all dealerships participate. Contact Costco to find out.
Elderly, raised to be polite and not make a fuss. Am the kind of person that is embarrassed to haggle for lower prices in foreign countries, garage sales, basically any transaction. Paid cash, every penny asked for. Could I have paid less. Yes, especially since cash purchase. Do I regret not negotiating? A little.
Would I recommend Costco Auto Program to others. Not sure. I’m still confused about whether or not I saved any money. Not sure of the benefit.
Use the program if you don’t want to haggle for lowest price. Use to get information to help in negotiations if you need or want absolute lowest price or enjoy haggling.
Costco Auto Program is a marketing tool. A carrot to procure buyers. It doesn’t mean lowest price.
Beware, some models are excluded. A dealership can offer Costco price on some but not all models. Not all dealerships give discount on accessories listed on addendum. Not all dealerships are part of the Costco 15% off after purchase accessories and service program.
What I liked about the Costco Auto program – I absolutely hate talking on the phone. Costco trained salespeople are limited to 3 contacts. On Costco website I asked for referrals to several dealerships and they didn’t harass me. I sent email to each after I made purchase and contact immediately stopped. Now I wish dealership where I purchased would leave me alone.
As one of many honest auto sales reps I person refuse to be that guy who does try to put the screws to a potential car buyer. Sadly because of the recent years of shady salesman and even more confusing and complex negotiations. The auto Industry may never lose its long held reputation. But please keep in mind that all companies including yours need to make a profit. Profits are what support the company and its employees including all who read your blog. Squeezing every last dime out of a deal hurts not only a business that provides a paycheck for people to support there families. We also give heavily at my place of employment. We give back a portion of our profits to many different organizations that support non profit groups that help people through difficult times and even more serious to families with children with devastating illnesses. The idea that we make these huge commissions is not at all true. There is the occasional sale that does provide a reasonable amount of reward but 90% of my car sales pay a $100.00 pre tax commission. But I still refuse to hold any part of the old school stero typical car salesman. How ever with out profit we are ALL out of a job and with our low wage flat economy continuing to take every $100.00 you can get is not at all fair. Put yourself in my shoes work 12 hours a day and understandably having customers ready to do battle for every penny. Before making that phone call or visiting a dealership think about asking people who they bought there car from and how was their buying experience. I work hard for my customers to earn trust, respect and referrals. It’s my customers that are the heart and sole of my job that supports my place of employment and most importantly my family. I ask that do your homework for both your new car and the salesman that has great reviews. By starting out like this you will have a much more pleasant buying experience. Lastly of course we need you to come in. I understand you want the best price on the phone but with so many different options available on today’s cars you need to see what you will get for your budget. By not taking the time to look at what you want and when the person tells you what you want to hear to get you to come in is when the stress factor climbs and your chances of any positive buying experience may just disappear. Remember it’s our job to sell as it is for anyone in the sales industry. We all want and need to close the deal that’s how we all survive and support our families and stay employed and not in the unemployment lines and applying for food stamps and using public tax dollars to survive. I don’t think any of us want to be forced to stand on the side of the road asking for help. Thank you for taking the time to read my response and opinion.
Thank you for this, Hoss. We really appreciate your candor and your perspective.
The so-called Costco discount was ridiculous. The MSRP for the car we were prepared to buy was $30,128. The Costco discount was $1554. That brought the price down to $28,574, which happens to be the exact same number as the invoice price. What a coincidence! We were ready to leave, and the dealer said they’d bring the price down to $27,794. We almost went ahead with it, but a dealer closer to our home, which had given us our test drive of 2 vehicles, and which we’ve done business with before, and which has a higher customer rating, met the price of the other dealer so we went close to home.
@ Jeff Keith
I read just fine thank you. I was promised a no haggle, low stress experience but that is NOT what I got. I still was faced with lies, high pressure sales tactics, a guy trying to change the terms of the warranty, not letting me read the warranty contract, trying to squeeze money out of me via my credit card and general condescension and rudeness. You said you were in and out of there in 3 hours. Good for you, son. But that was not MY experience.
GDT you sound like you don’t read the advertising. I took advantage of the program as I stated earlier and had no problems. They put me in touch with a specific contact at the dealership, in my case the fleet guy, and it was easy. In and out in 3 hours. Everything said the coupon had to be used at the dealership I bought the car at. So, I think you may just not be reading and now wanting to gripe. I’ve had three family members use it before me and they had great experiences. That is why I finally gave it a try. @ GDT
@ paul
Submit the request through Costco Auto and they put me in touch with the fleet sales manager at the dealership I went through. That was their trained person.
I just went through the Costco auto program and was very disappointed. They advertise a no pressure, stress free buying experience where you get a discount but that wasn’t the case at all for me. People at the dealership (Culver City Toyota) still subjected me to endless sleazy sales tactics, pressure to give them my money as fast as possible and I could have gotten a much better deal by NOT going through Costco and just haggling on my own and going someplace else.
I don’t think I’ll use Costco again and would not recommend their auto program to anyone. By the way, I also got this $200/ 50% off coupon but just found out you MUST use it at the dealership where you bought the car.
I’m so reluctant to ever go back to that dealership again that I don’t even think I’ll use the coupon. I feel totally misled by Costco; their advertising materials are lies.
@ Jeff Keith
What is the best way to find a fleet guy?
Don’t waste your time,, total scam. Special price was all of 200.00 under internet price on website.
@ ADAM
Dealerships are a business subject to losses like everybody else. Tired of dealers saying they have to eat. You are not a publicly owned entity guaranteed margin. You can go under and many of you have because poor sale tactics have been exposed by internet research empowering just about everyone. PLease explain the 500 dealer doc fees. Dealer moves 200 cars a month, the owner packs away one million like a cover charge. Can’t say the $13/hr book keeps cost 500 a car to process.
Disagree with your comparison Adam. A vehicle purchase, new or u used, is a commodity like anything else. Being a professional buyer as I am, I know that addendum, MSRP and invoice are ALL artificial price points. It is in the psyche of many Americans to haggle over prices. Unless you plan into the
CARMAX pricing or a car dealers so-called “no haggle” pricing. Your comparison is like comparison apples with oranges and bears little semblance to real-world buying of vehicles, new or used.
@ Chris
sounds like the only “shark” here is you. Do me a favor and next time you are at your local grocer, take your items out of your cart, let the cashier ring them up for a total and then once you have the total, offer them 100 dollars less for the stuff you just selected. I’ll give you a hint, they will laugh at you, also you won’t get a discount. What other industry works on such a loose pricing system. Yes people negotiate housing prices etc. but that is something unique with each house and more subjective vs. a specific car with specific features and one person feels they should be able to buy for whatever numbers they pull from their arses?
@
IF ALL BUYERS NEGOTIATED TO A “BREAK EVEN POINT WE WOULDN’T HAVE CAR DEALERSHIPS AND WOULD HAVE TO RESORT TO COVERED BUGGIES AND HORSES AGAIN. THINK ABOUT WHAT YOU ARE SAYING. A DEALERSHIP HAS WHAT IS KNOWN AS OVERHEAD. PAYROLL, LOT LEASES, UTILITIES ETC. SO TO BREAK EVEN ON ALL THEIR CAR DEALS IS NOT LUCRATIVE TO BUSINESS AND WOULD SOON RESULT IN ALL OWNERS OF ALL DEALERSHIPS FOLDING AND CLOSING UP THEIR SHOPS. HOPE THE NEXT TOWN OVER HAS A SERVICE CENTER FOR YOUR CAR AFTER THAT HUH?
We appreciate your comment, but many people consider all-caps comments yelling. Any chance you could re-submit this in upper and lower case?
Have to disagree with you. I saved $1800 below actual invoice, not dealer invoice. Dealt with the fleet guy who was specially trained, in and out in under 3 hours including finance. Got 2 cars this way, cheaper, easier and quicker.
I just went through the Costco auto program and was very disappointed. They advertise a no pressure, stress free buying experience where you get a discount but that wasn’t the case at all for me. People at the dealership still subjected me to endless sleazy sales tactics, flat out lies, pressure to give them my money as fast as possible and I could have gotten a much better deal by NOT going through Costco and just haggling on my own and going someplace else.
I don’t think I’ll use Costco again and would not recommend their auto program to anyone. By the way, I also got this $200/ 50% off coupon but just found out you MUST use it at the dealership where you bought the car.
I’m so reluctant to ever go back to that dealership again that I don’t even think I’ll use the coupon. I feel totally misled by Costco; their advertising materials are lies.
I can’t speak to every brand, but GM’s Costco price is the same as supplier pricing. That’s a good deal for most consumers. The dealer profit is locked in and it’s not nearly what most people think it is. Most dealers are working with a 2% margin. We are glad to work with the Costco program and all others. Quite frankly you will end up paying very similar with us and it’s a whole lot less frustrating than dealing with a buyer that thinks I’m making thousands of dollars at their expense! We’re no different than you. I don’t want to deal with the frustration and stress of a customer that buys a car, but hates the experience.
I’m always disappointed that so many people think every car dealer experience is the same. The truth is, it’s not! I’m part of a great Dealer Team at a small town dealership in Vandalia Illinois.
There are a lot of dealers that give the industry a bad reputation. There are a lot of unskilled, poorly trained, sales consultants who have no clue.
Then there are dealers like ours.
We use the same tools you use, KBB, Edmunds, Consumer Reports, and several others to show you exactly what we are doing.
I will make a profit on every vehicle I sell. I’m not going to apologize for that. If a car buyer can’t accept that, they need to go somewhere else.
I won’t retire on a single sale and I am looking for clients that want a long term relationship. If you own one car through me, great, but I want you to own the next 10 through me and send everyone you know. That won’t happen if you don’t understand the process.
A relationship with a dealer is just like any other, you get out of it what you put in. If you are defensive and closed off, you will probably receive the same. If you are open, while still verifying and documenting, you will be much happier.
We aren’t the only dealer that does this. If you go into a dealership and tell them you want that kind of a relationship, you just might get it.
So if you want a dealer that will be open and engage you where you are in the process, give a dealer like us a try.
The Costco auto program did nothing for us. On 2 vehicles the Costco price was $2000 more than the dealer’s internet price. We didn’t even like the dealers, and ended up negotiating a different deal entirely with another (much better) dealer.
I think the Costco pgm makes people who hate haggling with car dealers feel like they are getting a good deal, when in reality it’s the car dealers who benefit most from the program. That’s my 2c.
I have a fair amount of experience buying and ordering new vehicles from a consumers standpoint. The very first thing that any buyer or perspective buyer should understand is that the term “Dealer Invoice” is a term that the new car industry created to imply to the consumer that this magic number is what the dealer actually paid for the vehicle. This is absolutely not true, and if a salesperson or a sales “manager” tells you otherwise, he’s not being honest with you. It’s a marketing tool that is used industry wide in an attempt to fool the public into believing that they are getting a “one time super deal” if they only pay “Dealer Invoice” for a vehicle, when in fact there is already a substantial profit built into the “Dealer Invoice” price. You will hear the term “$100.00 over invoice” frequently, that’s an additional $100.00 over the already built in profit of the “Dealer Invoice”. The fact of the matter is that ALL dealers in the entire country pay EXACTLY the same price for any given vehicle, whether the dealer is across the street from the assembly plant or in Fairbanks, Alaska. There may be a very slight difference in the shipping price that they charge but that price will be posted on the window sticker, it’s generally less than $50.00 from one location to another, and again, the dealers are making a profit on what they charge for shipping as they get a fleet rate for the volume of business that they do with the transport companies. Bottom line: Car dealers ARE NOT going to sell you a vehicle unless they make a generous profit, and they will look you straight in the eye and lie to you about how much profit they are making. Watch out for “high rollers” in the game as well, these are sales people who work strictly off of MSRP, meaning that their starting point is always MSRP. As a buyer, you always start low and go up, as you can always go up, but you can’t go back down once you’ve started high. If you find yourself up against one of these, go to another sales person or find another dealer. Play one against the other, they will do it to you in a heartbeat. It’s an extremely slimy business, and these sales people/dealers need to be reminded from time to time that the money belongs to the potential customer until he signs on the bottom line, and that customer can spend his money anywhere he so chooses.
Buying a car is simple today. First, Go drive what you think you want to buy. Then go to Edmunds.com to check out the car and decide on what options you want. Edmunds will tell you what the average price that users paid for that car.
IMPORTANT:
Then send an email to three of the closest dealers of the car you want. Ask them for their best internet price. Then you have three quotes and the Edmunds price to compare. I’ve bought my last four new cars this way. It works with no Hassles.
I just purchased a new 2014 vehicle and I used the Costco program to help get a good deal. I didn’t actually purchase the car through the Costco program but I took advantage of the program to start the process and get a better price. Here is what I did and learned:
I submitted three requests through Costco using three different zip codes. This sent my quote request to three different dealers. One got back to me within 20 minutes with a detailed quote that was $500 below the invoice price. The quote included a copy of the invoice. Now I had a starting point.
I requested additional quotes online from other dealers in the area and three came back below the Costco quote and a bunch were over.
I sent an email back to the dealer with the Costco quote and told him I had three quotes better than the Costco price. I asked if he could beat the best quote I had received. He came back with a quote that was around $400 better than the previous best quote.
I then used that quote to try to get a better deal with the other dealers. I received replies from all three dealers but no one could come within than $200. One of the competing dealers actually told me the quoted price was below dealer cost , even after dealer incentives, and if it was a real offer and there were no shenanigans it would be the best price he had ever seen on the car and I should jump on it.
I then went to the dealership and meet the salesmen who provided the Costco quote, and then bettered it. We looked at number of cars to decide on the color; he had the keys for 6 cars ready and waiting for me. My wife took a test drive. There was not added pressure to upgrade to a different model or add on accessories. The price was the quoted price, no shenanigans.
In the end I bought the car from the dealer who gave me the Costco quote but it was not purchased under the Costco program. I beat the Costco price by over $1000.
The Costco Program won’t necessarily get you the best price but it will get you a competitive price compared to walking in to a dealer and haggling. If you want to get a decent price and don’t want to take the time to try and get a better price, it’s not a bad program. But you can get a better price if you want to talk the time and use the internet and email to negotiate.
I’m happy with the experience. This is my third new car purchase in five years and it’s the first time I didn’t have a nagging feeling I could have done better.
Now I have to deal with the auto insurance sharks.
@ Kyle L.
We purchased a Mazda CX-5 through Costco a few weeks ago. We got a price of $100 over invoice-no haggle. What we also got was essentially locked in the back room with the “finance manager” for an hour after we had already signed the papers (which she was holding). She told us she was “required” to give us information about add-ons, even though we said we weren’t interested. Occasionally I would ask her to move on; she would say “absolutely” and continue on with her spiel. This completely ruined the buying experience for me and I hope to never buy another new car.
True car (dot) com is better. I went shopping for a fully loaded 2014 Subaru Forester and the Costco discounted offer was $500 over invoice. After putting some pressure on them, I got them down to invoice price. However, True Car got it down to $700 UNDER invoice, and with some further haggling, I got it to $1300 under invoice. Costco may offer deals with other makes and models, but I could haggle much better than what they could get me.
If you are using the Costco pricing, you need to go through the Costco web site and receive a quote from the dealer to compare before you go. They usually send the names of. 4 or 5 so you can compare.
There are some disreputable dealers that will state they are part of the program and there are some web scams that have done spoofing and set up links that are not Costco.
You need a membership card to use the pricing it works like fleet pricing and if you are buying a new car they ensure you – the buyer get the rebate monies that are intended for you. The dealers gain by picking up customers that may have never come in and volume. They can also market and create a great customer service atmosphere and make money on the service contracts an subsequent service fo the vehicles.
If you don’t want the hassle, want all the rebates and a fair price, Costco works.
Unfortunately a lot of us don’t know how to find a reputable dealer and would just like the piece of mind it did not cost us an arm and a leg . It is sort of like health insurance, you need some leverage to get fair pricing and stop the pain points.
H
I found jout real quick this program stink!!! The dealer 2 days before offered me a $2000 factory discount and a $1400 dealership discount for total of $3400 including destination charges. Went to a diifferent location of the same dealership in the area with costco the sales person laughed at me and told me they would give me $1000 off or if I wanted their dealership discount it would be $34000 plus 5 year road side warranty and a $1700 warrenty extension to bring the total to a 5 year bumper to bumper and 100000 7 year drive train warranty. Costo needs to reevaluate the program
I tried the costco program for a Prius V Five and I got decent quotes. 26k to 27k. However I was able to find a better deal on my own. 25.5k at Stone Mountain Toyta in GA.
I used Dialbit.com where I could install a program which sends any phone number from my computer screen directly to my smartphone’s dialer. Nice not to have to dial by hand. I used it when calling about cars for sale off Autotrader or Craigslist etc.
I used them yesterday, March 30, 2013, regarding a 2013 CR-V. I found the experience a complete rip-off and a far cry from the consumer reports free program (you may need to be an online subscriber, but no additional cost.)
And I love Costco. They are the best when it comes to quality, service and standing behind what they do and sell. That’s why I was so disappointed.
I completed the forms and was contacted by Concord Honda.
I was told that “Our agreement with Costco will not allow us to quote the special costco price unless you are here in person.” That was disclosed on the website, so can’t claim misleading. However, my first point of wondering…..going in to the dealer to find out the price is always a warning sign….they are getting you to commit your time to get to first base.
Told him what I was looking for, and he came back saying they did not have that in stock, but would try to locate for me. I told him fine, if they could get it, I would go down there. Told him I was ready to buy that very day.
When he called back later and said they could have the car there tomorrow I just needed to come down to get the price, I told him what I had been quoted by a different dealer (from the Consumer Reports program.) His answer was “I really wish I could tell you what our Costco pricing is, but I can’t.” I figured we were in the ballpark, so told him I would be down there in 10 minutes.
Upon arrival, he not only looked at my Costco card (which was disclosed on the website as necessary to make sure I was qualified for the discount) he took the card and copied it. So he copied my American Express credit card.
Costco, do you really feel that is appropriate, having them take a photocopy of my credit card, front and back?
Turns out the Costco special price, which they claimed was “invoice”, did not include the $830 delivery fee which is printed on the sticker. So, he was offering me a car for $830 above what I had told him I had been offered by another dealer. I showed him the email from the other deal, which detailed exactly what was included and what was not included in their quote. And it specifically included the $830. He shrugged and said it didn’t include it from them.
So having wasted both of our time, I got up and left.
Good News is that I bought the car from the Consumer Reports dealer. Saved the $830 (a lot on a $30k car) and it was a much more professional experience. No need to go into the dealer to find out the “secret exclusive” price, much more transparent overall, and cheaper.
Will never use Costco auto buying again, and it is one (if not the only time) I have been disappointed like this from Costco. They are world class when it comes to transparent, high quality, value-priced offers. Everything about them screams integrity. Except for this program.
Update (see post #17). After being contacted by several more sales people at the same dealership and to know avail, the final sales rep. was forthcoming with all of the information that I requested (i.e., money factor, depreciation, etc..) documented in an email. No sales pitches or surprise add-on fees. We negotiated a price and completed the transaction, which was for leasing a Mazda CX-5. The deal was very good, however, with some persaverence, as similar deal could be had at a nonparticipating dealership. I do think the costco program saved me a little time on negotiating, though.
One word. Useless. After seeing the Costoc “deal,” I made a better one. It was not hassle free or exclusive or anything. What it did do was take me to a dealer farther from my home and one that I would not have considered. So kudos for the dealer for being part of the “Costco program.” It got me in their dealership, but, no it’s a waste. Total fail. Just do it on your own.
I spoke to a Mazda lease manager on 2/23 about leasing a vehicle. This dealership is a participant in the Costco auto program. I stated exactly what vehcile and trim I was interested in and my target monthly lease payment. The manager stated that the Costco price for the car is the invoice price. So I’m thinking, great! This will reduce my capital cost, thus reducing the monthly payment. The manager stated that he can provide me with a break-down of the costs (i.e., vehicle price, taxes, fees, etc..). I requested that he send me an email with the figures, so that I can review them. The manager stated that at the moment he couldn’t, because the computers were down (red flag), and that he will send me the information no later than Monday, 2/25. It is now Tuesday, 2/26 and no email. SCAM
I want to buy a Rav4 2013.
went through costco auto purchase program for a 2013 camreo at Smithtown Chevrolet, St, James NY and was told $100 over invoice(about $1000.00 off msrp), said great write up the sale as a 3 year lease on that price, they added $2780.00 to the MSRP of $25,655(2LS Coupe) and used that for the cap cost(minus $500 GM rebate).I have contacted GM & Costco Auto Purchase Program Executives……all I can say is buyer still has to beware and not get lulled into a false sense of security under this Costco program(bait and switch is alive and well)…….I hope costco is good on their word of kicking these types of “stealerships” out of the program. I think all sales should take place at a costco store office and all transactions should be controlled by car headquarters, reviewed by a costco finance person.the problem is the good name of costco vs the scummy reputation of car dealers…..costco needs better internal control.there is a flaw in this program as it now stands.
I skimmed through the post and hope what I tell you is not redundant. Costco pricing is hard to beat…sort of. Each Dealership makes it’s own deal. My price on a f150 is $900 below invoice at one Dealership and $1200 below invoice at another. Here is my experienced recommendation: 1. Get referral from Costco. 2. Go to Dealer and get Price. 3. Go to other Dealers and see if they will beat it. 4. Get our vehicle. If you go through Costco ask them to review your deal to make sure the Dealership followed the agreement. If they didn’t Costco will go and get your money. Costco has already fought the battle and I doubt if you are better. Costco can not force the Dealer to accept Costco Pricing. But, once the referral is made and the Dealer accepts the referral, the Dealer is bound. The Dealerships are full of money-motivated people (Liars and Sharks). Costco is your ally and the Dealership hates Costco for a reason. This information is gathered from Costco, Dealerships, Salesman and my own experience of late.
@gene
I am a sales consultant for a major Toyota store in the pacific northwest. For the record we don’t “mark up”. It’s shady and dishonest. As a sales guy I don’t “love” anybody for paying sticker for a car since I make a minimum commission most of the time anyway (there is very little margin in cars nowadays). I get more value out of getting a new customer and them referring their friends and family to me. I earn a living just like anybody else, people like you are ignorant. It’s sad really. How do you earn a living? ..and paying off a boat and vacations? God I hate people like you so much, why am I the bad guy? WE ARE NOT SCREWING YOU OVER. You’re living in the past. It must suck being so negative. Smile. Personally I would not post something for the world to read if I didn’t know all the facts. You are making yourself look bad posting shit like that.
@Jerad
Jerad,
You are obviously a car salesman/dealer or a complete idiot! If it wasn’t worth it for the dealers to “pay” Costco for inclusion into the auto sales program, THEY WOULD NOT DO IT!!!!!!! They would also NOT sell a car BELOW their cost and lose money! A dealer will come close to a “break even” agreement to move inventory! This “break even” point is where all buyers should negotiate to.
All dealers mark up their inventory in hopes of getting a huge profit from the suckers out there that can’t/won’t negotiate. Only a fool (like you) would be happy to pay over the bare minimum for any purchase (especially for a BIG TICKET purchase of car/truck)! It is the buyers responsibility to get the best price; just as it is the responsibility of any business to maximize profit!
Your local dealer must LOVE you; you’re paying off his boat and paying for his vacations! I’ll sell you a car, or anything for that matter, ANYTIME! As a matter of fact, I have a bridge for sale right now…………
In all dealing with the dealer watch how the destination charge, typically $900+, is quickly added back to any agreed price as a line item in the sales order document. Also, most dealers will add the window etch fee, typically $400, and a doc fee, also about $400. Best to do the dealer on line, get a printed e-mail.
Just bought a new car on the Costco Auto Program. After checking the dealers invoice through the Consumer Report I sadly discovered it is a scamm. Also Costco promised a $50.00 certificate for service and 15% off parts which they did not deliver on. I was taken by the dealer and Costco.
Sean, your comments about dealerships and car sales people show some ignorance or possibly remorse. My neighbor has been selling me Hondas for 15 years. The dealership, sales manager, and the sales person are wonderful people to work with and they work hard long hours. I could comment that doctors, dentists, judges, and police officers are sharks, thiefs, and liars also… really depends on who you choose to do business with I guess!
@sean
Wow! Soo many worries about getting ripped off buying a car. But what is getting “ripped off”? Paying a fair price for a car that you like, from a local dealership that respects your business? I’ve been buying from my local dealership for the past 15 years and they always give me a great deal. I inquired about the Costco price for the purchase of my 2012 Accord and recieved an exceptional deal. After discussing the program with my local dealership I came to learn that the real deal is for Costco. The delaership pays roughly $6500 to the dealership each month to be a part of the program. They then discount the cars to $100 to $200 over invoice price. Great deal for the customer, GREAT deal for Costco, not so good for the local dealership working to stay in business! I’m not going to complain about the great deal I got, and will probably use the program for my next car. But look at what Costco is doing… And yes the dealer may get incentives from the factory, but this poor salesperson feels that Costco did absoulutly nothing to help him sell this car? He still had to learn the features, present the product, and do his follow up. And they make all that money for ??? Sorry Costco, but when I learned of this I really had to take a hard look at what this does to our economy.
I was very happy with the Costco Auto Program! I submitted online inquiries through the Costco website regarding several different vehicles and received prompt responses from the dealers. Each dealer had a different offer (one was $50 over invoice; another $300 over invoice; Subaru offered $500 cash back after the sale, etc). Most of the sales people were willing to give me their price by email but of course they wanted me to come in and drive the vehicle. I ended up purchasing a 2012 Honda Accord. I got an excellent deal on the vehicle ($4,000 under MSRP) and .9% financing.
all dealerships are the same.. they are full of sharks and liars. They all promise a hassle-free transaction, so long as you give them exactly what they want LOL..
Car salesmen are turds, while the sales manager is the biggest turd of them all, every stinking one.
My suggestion is to go to a car purchasing company to do the negotiations for you. They will usually get your car at invoice or a little above invoice. They charge a flat rate (and probably take a cut somewhere in the sale, but they don’t tell you). At the end of the day you’ll still pay way less than you would trying to negotiate yourself. The car purchasing services comprise of ex sales guys who utilize their inside contacts to find you the car you’re looking for, at a much lower cost…
good luck!
I am shopping for a vehicle and today went to Inver Grove Heights, MN, Toyota dealer where I dealt with a Mr. Dan Schmitz. I informed him that I was a Costco Club member and needed the hassle/negotiation-free discounted deal made exclusively for Costco Club members.
I was very specific about the model types and limits of accessories so when the returned quotes were given to me verbally, I was more then surprised.
The quotes, were short on expectations and suspecting obvious dishonesty, I asked for the quotes to be given to me in a printed format.
That request was denied/refused with further deception and a flat-out lie telling me that the quotes could not be printed (not a technical issue with the printer).
Coming home, I found on the internet that the practice was universal with comments similar to this:
The Costco auto program is misleading and deceptive because its “members only” price is exclusively defined in reference to the “invoice price” of authorized dealers. The Costco auto program does not control the underlying invoice price, and its participating dealers can and do manipulate that price in any number of ways.
Feeling that Toyota must be above this obvious practice, I am posting this experience on-line, in the hopes that someone gives it the due attention and holds the practice of deception accountable.
Price quoted with the Costco discount was $27 800.00 and should have been $26,593 to include the $810.00 destination charge.
The second quote with the discount was $22 900.00 , and should have been $21,988.
to include the $810.00 destination charge.
Note to Toyota of Inver Grove Heights:
By your actions, you have detoured me from doing all future business with you, and have given me the platform to inform the public of your dishonesty.
You can not be trusted, and neighbors, Toyota, Costco, etc. will know of this experiance as well! !!!!
Just bought a Toyota 4 runner through Costco and I took the out the
door price (taxes, tags etc) that the dealer in my area gave me and
contacted several other Toyota dealers. They couldnt beat the price
that I had received and in fact many of them wanted to see the specs
of the car that I was quoted on so they could find out what was on
the vehicle. Then I went in and got some options added on and another
350 dollars off. I also went in on the second to last day of the month
and the second to last day of the fiscal quarter at 12 noon when it was
slow.
@
Whoooaaaaaaaa that comment needs to be deleted. I don’t think James understands how the internet works or he would not have posted his home phone number publicly!
Yes ,I’m quite interested in getting a C R V Honda for my daughter Erin who is
in her 2nd year of college and would like to know if I could go through costcos with out getting rapped on the price ???
Yes I’m a retired ny city firemen and the wife works as a schol nurse for my city, with a great credit report my home phone is 1 XXX XXX XXXX. Let me know how u feel thank u I have been with costcos for over 6 yrs and would like to know if I want to renew my membership , I’m on the fence, Costco has been good to us !!! Thank you
I wasted 6 hours to find out that just like when you walk into a Costco store you better know your price of an item at other stores before purchasing at Costo or you might regret the purchase. COSTCO AUTO SAVE is no different then Costco stores. BUYER BEWARE!!!!!! We just returned from a recommended Costco dealer, They quoted me $1000.00 over from a dealer that I visited the day before. I am not the negotiating type, when I told this Costco dealer of the difference their response were that the vehicle for that price did not exist and unless I sat in that $1000.00 less vehicle it definitely did not exist. I showed them the invoice that the first dealer gave us and told them that I did sit in the $1000.00 lower vehicle and in fact it had 2 additional options in it that Costco’s dealer did not offer in price. I told them have a good night and left.
If you can bargain you could get price >$1000 less than costco bs program
Hi Patricia,
Thank you for emailing me, I really appreciate it! I am very disappointed with the Costco Auto Program and I prepared a statement about my experience which I have attached. Please let me know your thoughts on my statement, I look forward to reading them!
I unequivocally state that if Power Nissan and ABC Nissan are the only Nissan dealers in the Phoenix metro area that participate in the Costco Auto Program, it doesn’t say much for the program or the folks accountable for making dealer selections! Please let me explain.
First, let’s talk about ABC Nissan, Phoenix. I sold automobiles for many years, Cadillac, Buick, Pontiac, Lincoln-Mercury, Honda and Nissan. I was a salesman at ABC Nissan (The Van Tyl Group) for a number of months and was completely dismayed with their sales process, follow-up and service department. Sales personnel were taught an aggressive approach to customers (“the four square”), emphasizing closing the deal at the most money we could get in the sales process. After the initial sales deal is completed a customer is then referred to the F&I Manager for financing, accessories, add-ons, hidden fees, warranties, insurance and service contracts. There are a thousand ways a dealer like ABC can get an unsuspecting customer’s money! Because they are participating in the Costco Auto Program, a customer may usually “relax” and will trust that the dealer will treat them fairly. Lowering one’s guard at ABC Nissan is a mistake! The longer a customer stays in the dealership, the more money can be had from them! ABC’s minimum time for customers to spend in the showroom is 3-4 hours. ABC had front/rear mount license plates installed on each new car delivery that read “I Got The Deal I Deserved At ABC Nissan.” This was our little inside joke concerning the inability of any customer to break through our aggressive sales techniques and get a good deal, much less a fair deal. This type sales technique is what the buying public finds so objectionable about US automobile dealerships and precisely why auto buying programs have become popular, even if they still may be ineffective. I can tell you from experience, ABC Nissan will get their pre-determined percent of profit one way or another, if not on the final price of the vehicle then somewhere on the back end of the deal as I stated above. Customers cannot beat this system and Costco can do nothing about it! Customers may very well get the “Costco price” but dealer sales people will more than make up for it somewhere else in the deal! It’s why I left the dealership and why I would NEVER buy a vehicle from ABC Nissan, Costco Auto Program or not!
Now, let’s talk about Power Nissan, Tempe. Using your program, I attempted to purchase a ’09 Nissan cube from Power Nissan in May, 2009. Although I was informed by your telephone representative that the ‘09 cube was not yet on your list of priced vehicles, I was assured that the dealer would price this vehicle according to Costco Auto Program guidelines. That never happened. I paid way too much for the car, not the Costco price. Upon my return call to your program representative, I was informed “there are no guarantees since your car was not on our list!” Very nice way to instill customer confidence in the Costco Auto Program!
In fact, I had placed a deposit with Power of $500 on the ’09 cube in December, 2008, based solely on the Costco Auto Program recommendation, in anticipation of the announced delivery date of March, 2009. Nissan postponed the cube introduction date to May 2009. In March, 2009, I actually placed an advance order of color, trim level, equipment and accessories with the authorized Costco Auto Program dealer representative at Power. That order was ignored and the CAP dealer rep quit the dealership (was this a clue?). Finally on May 7, 2009 I was offered a just arrived model which was not the color I wanted, but, was equipped as I wanted. Shortly after taking delivery, the car started experiencing problems with the A/C blower. The Power service manager said Nissan engineers, from the Nissan proving ground located in the Phoenix metro area, were dispatched to diagnose the problem, could not duplicate the condition as it existed at the time the service writer initiated the work order, but, replaced the A/C blower anyway. I later discovered this was a lie told to me by the service manager, the A/C blower was NEVER replaced and no Nissan engineers visited the service shop. After a second visit for the same problem, the service tech noted on the work order “customer does not understand how to operate the system”. I can assure you that I am familiar with and know how to operate an automobile A/C system! I have never received one follow-up phone call, letter or email about my sales or service experience at Power Nissan. I chose another dealership for my service needs and I have NEVER returned to Power!
On August 21, 2011, I contacted the Costco Auto Program on another cube, a 2011 model, and was referred to Power again. I was disappointed to learn that Power was still an authorized Costco Auto Program dealer, especially after the letter I wrote to the program about Power in July, 2009. Perhaps they have improved, I thought, and decided to give them another try. On Sunday, August 21, I spoke with Brian Shirley (he called me) to set an appointment for 2:15 PM, Monday, August 22nd, to see the vehicle and get “Costco Auto Program’s preferred price”. I had a last minute urgent matter and could not keep my appointment with Brian so I called him about 1:15 PM on August 22nd, to reschedule for 2:30 PM on Tuesday, August 23rd, which he agreed. Upon my arrival at the appointed time I was told it was “Brian’s day off” and some other salesman would assist me. I simply left. It seems a simple courtesy call only works one-way at Power and that’s when the customer makes it. I still do not know the SECRET Costco Auto Program price on a 2011 Nissan cube. I never learned the SECRET CAP price on the ’09 cube I purchased! NOTHING has changed at Power Nissan, Tempe as illustrated by the rude manner me/my appointment were handled by the auto program authorized sales representative, Brian Shirley. Fool me once, shame on me! Fool me twice, shame on you! I have NEVER received any acknowledgement from the Costco Auto Program about the letter I wrote to you! I’ll NOT visit or buy another car from Power Nissan, Tempe!
Based on my personal experiences with these Costco Auto Program recommended dealers and your lack of response to my July ’09 letter, I will not use the program in the future as I am sure there are much better buying programs out there. I would discourage any Costco customer from using your program! I do not believe the program has “strenuous” dealer requirements for participation as has been stated to me by your telephone representatives! I really do not understand how Costco, a really great company with whom I have been greatly satisfied, can subject its customers to such an outrageous program and auto dealers!
If you are genuinely interested in my opinion and recommendations, CAP should approach Earnhardt Nissan, Superstition Springs Blvd, Mesa, AZ. It’s the dealer I chose for service. They repaired the faulty A/C blower that Power said I did not know how to operate (I can provide written documentation from both Power and Earnhardt concerning this matter, proving that what I assert is truthful) and they have satisfactorily performed all further service needs for me. They have an excellent, Nissan award winning, service department. I, previously, purchased two brand new Nissan Altimas from Earnhardt, an ’04 and an ’07, and negotiated a great price on both. Sales people DO NOT pressure customers, do not attempt to “inflate” deals and ALWAYS negotiate purchase deals fairly and with an even hand! The Earnhardt customer experience has always been an excellent one! There are, and always have been, a host of follow-up phone calls made from the Sales Manager, the Service Manager and a survey taker, in addition to email messages, about all my sales and service interactions with the dealership. They go out of the way to make sure I am satisfied. Based on my 7 years experience with them, Earnhardt Nissan should more than meet your standards for selection and provide a level of sales and service Costco customers really deserve!
With a Nissan dealership like Earnhardt’s in the Phoenix metro area, you do Costco customers a disservice to recommend Power or ABC. The folks at Costco Auto Program accountable for selecting dealers really should do their homework and their job!
I‘ll check back in a few months and if Power is still your recommended dealer, I’ll know I was ignored like I was in July, 2009 and will write the appropriate Costco web-site reviews and letters to those accountable. I’ve been a Costco customer over 10 years and my many assessments/web-site reviews of Costco products and services are un-biased and invaluable to other Costco customers!
Sincerely,
Gregg Smith
COSTCO NEVER ANSWERED MY EMAIL!
@ Hoku Gilbert
We are looking to purchase a Honda Pilot and got referred to Honda Windward through the Costco program. What was the salesman’s name?
maybe it pays off to coment online within hours of commenting about no rebate check the dealer phoned and asked us to pick it up. As for the deal we got we made the best deal first when we were doing the paper work the finance staff asked if we were eligable for the costco rebate and trust me it was the best deal around
my son purchased a new truck from a regina ford dealer in september fe filled out all the paperwork for costco rebate. marked the box rebate to customer. told by dealer that we would get a cheque in the mail, it’s now the end of november can’t get answers from anyone keep getting told to ask dealer as they mail out the cheque. dealer still looking into it at one point they told me it was part of the down payment,not correct so you tell me ,it can’t be a good thing if you never get your money
@Filip
First off. The Costco program is not a scam. It is what it is.A fixed price to buy your car. There are many people who hate to haggle. If they do its a prefect way to buy a car. For all you haggle pro’s out there. What is a good price? Is it the absolute lowest number with no regard for any value of service? If so who do you know you didnt leave any money on the table? Sorry trust me you have no idea. NONE. I dont care what you paid. Someone somehwere would have beat it by some amount either small or large. Of course you would had to spend a crazy amount of time going from dealer to dealer and making call after call. Oh and of course you know gas is cheap so dont worry about wasting that. But hey, I know you pro’s all call and get your number over the phone!! Yeah right. And you drove all the way there heard. “oh sorry it has an alarm on it” or Sorry we sold “that one” or maybe not. So with the Costco program the price is the price and wont be changed. If it does and Costco finds out you are out of the program.
And another point for all you smart guys. Did you all know most every dealer in the country loses money in the new car department on average. Or makes a small net profit.
The Costco Auto Program is no more than a joke. I was able on my own to get $1200 less than what the Costco car affiliate was offering. Yes I used the old technique of knowing what I want first, and then researched what it is worth, and then used the best dealer offer to negotiate with other dealers. The Costco Auto Program is just another way to scam trusting Costco members.
I love listening to all the “gurus” about buying a car! It gets deep at some point and you have to lift your pants so they don’t get any on them.
Everyone is talking about, discounts, saved $$, etc. there is no mention of customer service or after sale follow up or service depts etc etc. It’s like GEICO, save money, until you have a claim and then you realize they’re going to fix your car with parts from a junk yard! Oh sure they “warranty” the work, but then again its your time without your car when it rots out and they fix again. Same with dealerships. If they don’t make money and sell everything on the cheap, how good do you think the rest of their services are. NOT!
So when you “gurus of negotiations” are out there, remember there is no free lunch and you pay for your “skills” somewhere else along the line.
Well as a person that has worked at car dealerships, here is the deal.
You have the price the dealership pays for the car. There is a “minimum” price they will sell the car at and still make money, but of course they want to try and sell it for as high as possible. The “dealer invoice” that programs like this show you are actually a little higher than their minimum sale price. There is no law requiring that car dealerships show you an actual “dealer invoice” of what they pay. The one they show you is just made-up.
All “incentive” programs that dealerships make, even the costco one, are made up programs. They are made to get you to buy a vehicle. Student discounts, senior discounts, special “weekend sale” discounts, etc are all made up by the dealership to give you incentive to buy. The only discounts that are fixed and real are manufacturer discounts which are given out by the car manufacturer, not the car sales company. Anything else is made up on the spot to get you to buy. If a salesman is talking with a potential buyer and in talking finds out that hes a student, he might say “oh, and if you buy today i know that for this week we have a special student discount 200 dollars off”. Of course you can get the 200 dollars off by haggling if you want, there isn’t any real student discount, just a sales tactic.
Same with costco. its a sale tactic that gets you into buying the car, and where the sales people can try and get more money out of you by haggling/financing, etc. The NUMBER ONE best way to buy a car is to get 2-3 dealerships of some type fighting each other over the price. Get price from number 1, tell number 2 that number 1 offered this, number 2 will offer that, etc. You will have them calling you at home to try and undercut the other.
Costco has pricing guidelines. If the dealer can’t adhere to those guidelines, Costo requires us to exclude the vehicle. I don’t know where they get some of their pricing figures. We were asked to price a fairly uncommon compact car at $900 below invoice — impossible! I’d like to see proof that ANYONE is offering such a price. Yes, the dealers have a little flexibility, and that’s good due to supply and demand, but if Costco doesn’t accept the price, we can’t offer it at ANY discount — even if it’s significant.
I have worked at several dealerships prior to finding my own consulting company, and the Costco pricing was determined BY THE DEALER at each dealership. In other words, there is absolutely no uniformity, and no rules, other than the given dealership must give the “same” Costco price to every “Costco” customer. The fact is, however, that some of my internet clients received even lower prices. Silly program, in my opinion. But good for those that want to “name drop” a BIG NAME, when entering what is undeniably a scary arena for most people looking to purchase a car.
I’ve used the Costco buying program over the last 15 + years without incident (4 cars) until my experience between March & June 2010. Prior to this the program worked pretty much as advertised and I checked Consumer Reports and Edmund’s buying services to home in on dealers cost. The price I was given was always within a couple of hundred dollars of those dealer’s cost and in one case below. These were all new car purchases. In April 2010 I called Costco’s buying service and got the names of the dealers participating and then went to look at cars. The important part you must remember, is to speak only with the names of salespersons given to you by Costco. If you don’t do this the dealers will treat you like just another chump.
When I settled on Subaru Outback, Limited trim line, I asked for and received an invoice with a price I liked with a salesman that seem honest & personable. I told the salesman that I’d have funds to buy the car in June 2010 once I’d completed refinancing a line of credit on my home and so would be paying cash for the car. Over the next couple of months the salesman contacted me several times to see how my refinance was going. Once I had my cash I made an appointment to go and buy the car, on 6-4-10. Well, within the next couple of weeks things changed a little bit for me. The day before the car dealer apt. my mother passed away. So, I when went to buy the car on 6-4-04, the salesman asked me how I was doing. I said, truthfully, not so hot, but, I still needed the car. The salesman then asked me what price had he quoted me. I handed him a copy of the invoice he had given me in April. He looked at it, asked me a few questions for title purposes and mentioned that he had a new manager and was not so sure about the invoice price he had previously given me. He said he had to talk to the manager. When he returned, he pushed paperwork across the desk @ $1200 higher price than the previous invoice. I calmly told the salesman I was not going to pay anymore than he had quoted me, that his sales tactics were deceitful and that I’d just have to buy the car from another dealer. I walked out and vowed that I wan’t going to let this matter die. If the salesman had been any type of empathetic, human being, he would have said, I’m sorry for the loss of your Mom and I can’t sell you the car for what I quoted you. Had he done that, I would have just probably forgotten about it and found another dealer without complaint. But no, this weasel just had to see if he could reel in another deal.
During the next 10 days I wrote a pointed letter to the dealership complaining of this treatment and sent a copy to Costco advising them I had never had such bad treatment with my previous car purchases. The dealer said the high trim line on the car and demand for it meant they couldn’t sell it to me at the price previously given, telling me it was simple miscommunication issue. I told Costco that was not the case. On further review Costco found out that the salesman I had dealt with was not an authorized Costco dealer contact, although he had represented that to my wife and I. I thought that Costco would blow me off too but
then they apparently paid attention that I had used their service on several occasions. I was later contacted by one of the managers of the Costco buying program, who felt that the dealer had not acted in good faith. When she asked what they could do to make things right, I told her they could find me the car I wanted. After a couple of days they gave me a dealers name about 90 miles away. I contacted the dealer, took a train 2 days later. The dealer picked me up at the train station and after 30 minutes of no B.S. purchasing, I was driving my new car back to San Diego. As for the dealer who gave me the runaround, who owns numerous car dealerships in San Diego County, whose motto is “it’s so nice to be nice”, he has a huge lawsuit on his hands stemming from a defective car he sold (not a Subaru) to someone. What else has he lost? My business and hopefully many others. I’m getting ready to buy another car and will definitely rule out any dealership he owns, whether referred by Costco or not. People who have bad experiences such as this cause dealers to not only lose car sales but also a sales/service relationship that stands to make them a lot more money that the sale of one car. This dealer was to blind to see the bigger picture.
I just had a very unpleasant experience with the Costco buying program involving Honda Windward in Hawaii, but I believe it was largely due to the bombastic style of the salesman. As to that, he refused to let us see the car until he had gone through his entire “presentation”–which takes TWO hours. This presentation involved being locked in his office, with him spending the majority of the time talking very fast about Consumer Reports ratings, paint quality (why?), bad mouthing the competition (in this case, Toyota) and basically telling me how great he was at sales and how little I knew about cars (and therefore should trust his expertise). He got in to a shouting match with my husband at one point and told us he didn’t need our business because people buy cars from him and Costco all day long. He was 15 minutes late for our appointment with no apologies. He didn’t even have a clean car ready to show us. Despite my repeated requests that I just wanted the price and I wanted to see the car, he refused to accommodate me in any way. He also kept trying to sell me a car with upgrades that I didn’t want, completely ignoring my wishes in the process. If such is the Costco mandate–grind through this presentation no matter what the objection from the customer–then Costco didn’t make the process any easier for me. I will happily return to the old-fashioned way of buying cars–finding a salesman who listens to me, takes an interest in my questions and concerns, doesn’t trash the competition, and finds me the car I want, not the car he wants to sell me. And I will gladly pay more for the privilege. It’s not always about the money.
Thank you Lori for sharing your positive experience!
You might consider leaving a review of the dealer on the CarGurus dealer review section:
http://www.cargurus.com/Cars/reviewDealer.action?pid=dealerSideColumn
Enjoy your new Juke and congratulations.
Back to NH w/Juke in the driveway. We had an excellent experience with our Costco referred dealer! Everything was as expected; no surprises! The sales staff was professional, friendly, and knowledgeable. This may have been the best car buying experience we’ve ever had. Kudos to Costco, and to Crowley Nissan in Farmington, CT!!!
I have always been a big Costco fan and the Auto Buying Program lived up to my high expectations. In my case, I was looking for a car that was in very high demand and negotiations with dealers was not an option. I am on my way this morning to pick up my Nissan Juke. All the dealers around are selling what they have (and none have the trim I’m looking for) at MSRP, with a couple actually adding an upcharge! Because Costco already has a deal in place with it’s program dealers, we are getting the car for invoice, which is $1500 under MSRP in a market where no dealer is willing to haggle. The dealer contacted us immediately by email (and it was in the evening). I called the next morning, spoke with a polite salesperson who told me what the price would be (to be honest, I was surprised the dealer was even willing to admit they had this car on the lot, since they could have sold it at full retail to someone and probably the same day). The salesman emailed me a copy of the window sticker,which was oddly a $640 LESS than Edmunds! The dealer conveyance fee was consistent with other dealers. Bottom line – we are driving a long distance (would have had to any way, for the Juke we wanted) and are getting it for 402 under invoice, and 1991 under Edmunds quoted MSRP! That being said – if it were an Altima, or other car the dealers have lined up in their lots in abundance, armed with the TMV report from Edmunds I’m sure we could have haggled a similar deal. Gotta go get my Juke! If my experience is anything short of pleasant and professional, I will report back tomorrow!
In my recent experience, the Costco Auto program offer consumers good prices but not great prices. I recently bought a Toyota Prius III. The MSRP was $25,010. The Costco price was$23,010. The CarWoo.com Marketplace where they had 7 dealer competing for my business was $22,388. The Costco program had no competition amongst dealers, so pricing is just OK. I was very happy to save more than $600 using CarWoo. The online service did cost me $49, but the fact that I could save about $600 was well worth the money and time saving of not having to visit a bunch of dealers to get the best deal from Capitol Toyota.
FWIW, there’s no “committing” to the Costco Auto Program. If you can find the vehicle for less, or if you enjoy the negotiating process, buy the vehicle elsewhere.
WOW! I am glad I visited this web site as well as one other site before committing to the Costco Auto program. I am guessing, but I believe customers bad experiences out number the good 9 to 1 at best 8 to 2!
Think I will try the online Edmunds thing.
We purchased a 2010 Ford truck through the Costco program in the fall of 2009. It was so easy we plan to do it again with a car next year. When I contacted the Costco Auto Program regarding our interest in purchasing the truck it was literally only a few minutes before we received a phone call from the authorized dealer. Their deal was straightforward. They said the truck would cost inventory price minus any incentives in place at the time of purchase. I obtained inventory prices independently on line and they were exact to the dollar of what the dealer had in their computer. We factory ordered exactly what we wanted and we paid exactly what we expected, which, due to a promotion, was $1000 under invoice. Plus, we were offered 0% financing. There was never a hint of having to negotiate and we feel we paid less than what we would have paid if we had haggled from the sticker. I think the success of the program probably has a lot more to do with the dealer than with Costco.
Costco after purchase? Are there any stipulations on the resale of a Costco purchased vehicle? I am looking to purchase a Toyota Tacoma “Prerunner”. (a model that is not available here in Canada). A U.S. Relative of mine would be purchasing the vehicle and then reselling it to me. Are there any issues with this transaction?
I also went through the Costco auto purchase program and eventually negotiated a price much lower than the Costco price. Based on my experience, the so-called Costco “discount” if any is minimal, and the Costco program is a waste of time.
@CostcoAutoDealer
I am a member of Costco buying program as well and Consumer Reports program. At a Nissan dealer I took my car in for servie. I love my car 06 Murano. The driver seat came unmounted and I was tipping over when I drove. Nissan said $900 to fix the it the cheap way. In the mean time, actually prior to this, I called service and had an appointment. Service sent a car sales man to me while they looked at the Murano.
I repeatedly said I was Costco and Consumer Reports, pulled up all the internet information and was told by Nissan that Costco and Consumer Reports are “nonense” according to my Asian sales man.
Part of this was my fault for getting sucked in to it all and looking at cars in the first place where they BLOCK my ACCESS to internet and fleet sales. The minute one sales guy talks to me, 5 others come along as well. I was blocked from fleet, should have walked away, and not paid top dollar plus a down and retate rolled into negative equity and I am upiside down in a car for which my Fibromyalgia/chronic pain won’t even let me drive. I had no idea when I purchased the car which now has
500 miles on it that I could not drive it more than 30 minutes. I am too crippled up with Fibro and other issues with arthritis that I can’t get out of the car after 20 min, I can’t lift groceries from the trunk.
Consumer Reports called to follow up on the transaction and I told them I had Costco and CR pricing and did not get the stated price.
The dealer addes Zak-tec paint protection to all cars, they add tinted windows, etc.
I called the dealer and let them know I was having issues and sales again blocked me from fleet. I was allowed to try a Cube and a Altima but has similar issuse. The Altima was actually a better fit with the power seats, like my Murano. With the arthritis and medical issues I can’t get the manual seats and steering wheel to work, the seats lack padding and my back kills me also.
I walked out , took the original car and figured I would try another car dealer. Bottom line, Nissan had the Murano that I had that I could drive, none of the others work either, The Altima sits lower than the Sentra and still lacks pull up handles on the drivers side to get myself out of .
The deal is done , the dealer does not have to do anything and the idea of pushing me to buy anohter new car and again be blocked from the Costco/CR buying program = and it seems that has add ons. The dealer assured CR I was getting invoice but I never saw it. Maybe Invoice with a ton of addons.
Fleet sits in the same room with the other store managers and to CR what they wanted to hear. Same with Costco program. With Midway Nissan anyway.
This was my last car purchase from this dealer. They are all nice I give them that but what sales person is not nice.
NoW I have a 12 day old car I can’t drive, Sales should make sure Costco members go to Costco fleet instead of fighting each other for the sale at the expense of the customer. Especially where a dealer outright refuses to allow you to use Costco.
Now I must wander to other dealers in the Costco plan and Consumer Reports, I will forever question the sales and fleet and never know who is telling the truth.
I did find a Pinacle Nissan and they man was amazing and kind on the phone and explaied things to me that my Nissan dealer did not.
I am sure the program is good but buyer beware. The car dealers are ruthless and they back each other in sales.
Pinacle Nissan was kind enought to explain that they do have to answer at the end of the year to Coscto regarding the program and that made me feel better.
Research your dealers and be careful.
Hello again,
I wanted to add the following:
As a Costco Auto Program participant, we are required to do a few things:
– Ask to see and make a copy of your Membership card. This doesn’t always go over so well if your card is also your AmEx.
– Show you the invoice sheet
– Show you the Members On;y Price Sheet
If you go to a dealership, and they don’t show you the price sheets, tell them they are required to as part of the Program.
FWIW, Costco tells us not to give any pricing over the phone or through e-mail. As I mentioned in my earlier post, I do it anyway for people who aren’t local. The point is supposed to be that you get the best price first, and it cuts out the whole negotiation process.
Costco would rather have us exclude a vehicle than offer a small discount on it. For example, if a hot new car comes in, and we’re selling it at MSRP, but we’ll take $500 off for Costco Members, they won’t let us publish it because it’s not a high enough discount. Kind of twisted, right?
Also, we are supposed to treat Costco Members with the customer service they expect. I try to treat everyone, no matter how the sale initiated, respectfully. I have had some awfully rude Costco Members be verbally abusive to me for no apparent reason aside from the fact that I work in a car dealership. I’m a Costco Member, too, and I just don’t get the whole entitlement thing. Just because you pay $50 (or whatever) ayear, that doesn’t give you the right to be a jerk to me. FWIW, as a participant, our dealership does not get ANY benefits from Costco — no free memberships, no discounts, no cookies… nothing.
Again, I think it’s a great program. Costco is very quick to call us if there’s a complaint. If you have a bad experience, let them know. If the dealership consistently fails, they will be kicked off the program.
@ CostcoAutoDealer
Thank you, CostcoAutoDealer, for sharing your side of the program. You’re honesty and insight into the process is refreshing!
I am the Costco contact person at a dealership. There are a few things I would like to share. Being part of the Costco Auto Program is up to individual dealerships. We PAY to be part of the program. It’s not our fault, or even Costco’s, if there’s not a dealer closer to you. In fact, my dealership is in the middle of two other major cities that don’t have an Auto Program presence. When I call people in these cities, they often get mad or hang up on me. Honestly, I think it’s worth driving an hour to potentially save a few thousand dollars.
Costco doesn’t like it, but I DO quote prices to people who live out of my metro area. About 50% of the “serious” buyers make the trek to my store. I’m certain that the others take my pricing to the local dealership and ask for it to be matched. Why should those dealers pay to be part of the program? I’ve already done their work for them.
Our Costco pricing is, in fact, almost ALWAYS the lowest price. Is it possible that you MAY get a lower quote somewhere else? Sure, but I doubt it’s going to happen if you don’t show them the price we quoted you.
PLUS, Costco Members receive an ongoing discount on parts & services; that adds up during the course of ownership.
Costco is very rigid in their process. If you complain about us; we hear about it.
We don’t charge any extra fees. If we have to do a dealer trade that’s more than ~150 miles away, we may require a small fee to pay a driver to go get the car.
We are required to show you the invoice sheet and the Member’s Only Price Sheet. Everything is in front of you. Yes, your trade is the wildcard. I’ve been in this business for 8 years and have RARELY met someone who is happy with what they get on trade.
All Costco sales are “mini deals” for our Sales Consultants. They make $100 flat because there isn’t any “gross” in the deal. The idea is that the pricing is already done. It *should* be a smooth transaction.
I’m proud to be part of the Costco Auto Program and don’t understand why a dealership wouldn’t want to participate. I take pride in offering a great benefit to both our customers and Costco’s customers. I’m glad I work in an ethical car dealership; I wouldn’t have it any other way.
I can’t speak for all dealerships. I hear horror stories, too. But we’re not all thieves and slimeballs.
Hope this helps.
@ Lili
The best way to see the invoice price is to simply ask the dealer to show it to you. But first, research on sites like cargurus.com and edmunds.com to get an idea of what the invoice should be. Then, you’ll be prepared to negotiate from invoice price instead of MSRP which should save you money.
Where do you find the invoice price of cars? Looking to buy a Kia Sorrento 2011 or Rav 4 2011 and am not sure where I can find the invoice price.
Nice job!…….Nice Service and experience was very Nice
I have purchased two trucks through the Costco program. The first was in 2005 through Pacific Coast Ford in Seattle. I signed up online for the Costco program and they put me in touch with the dealer. They charged me a flat rate of $500 over the invoice price. I use Edmunds.com to compare invoice and MRSP prices and everything matched. I ordered a F350 King Ranch with all the options I wanted from the factory and it arrived about 8 weeks later and everything was fine. Presently, I have again ordered a truck, a Ford F150 Platinum with the ecoboost engine, through the Costco program. This time Costco referred me to Horizon Ford in Seattle (as Pacific Coast Ford is no longer in business). This time the cost is the “Costco Price” which is about $300 less than the Edmunds.com TMV price (about $1800 more than invoice cost per Edmunds.com). This dealer (internet salesman Arthur Harris) has not provided me with the invoice costs (I didn’t ask, he didn’t offer) but my research online seems to be consistent with the numbers I have been quoted. There have been no “etching fees” or “Costco user fees” and if any of those red flag items were ever mentioned I would have immediately said goodbye. I suppose there are some crooked dealers out there that will try to get your money one way or another (imagine that!).
So, the bottom line for me is, if Edmunds.com is a trustworthy source, this deal is not as good as 5 years ago but I am still getting a reasonable deal and I get exactly the vehicle I want and I don’t have to step a foot into a dealership until the day I go pick up my vehicle (priceless!).
Waste of time! The Costco Auto Program price was by no means competitive!
Do your homework, and you’ll find you can get a better price on your own.
Besides, the dealer did not have the product in his inventory. He only said that he did in order to get me in the door!
@ Nitin
(Sorry, I meant $400 doc fee; the $750 destination was included in the $17.8 invoice price.)
Not a scam. But definitely not always the best deal. For the 2011 Honda Civic LX the Costco price was $400 over invoice as of December 11, 2010. That’s $17.8 plus $400=$18.2. Plus $400 destination charge, $500 tax, $100 registration, and $250 in worthless add-ons, and suddenly we were up to about $19.5k OTD for a car whose MSRP (including destination but excluding tax title and docs) is $19.3k.
I had done my homework and gotten Internet quotes from local dealers through Edmunds. To his credit, the Costco partner dealer matched the price I had negotiated with a nearby dealer, so we paid $16.5k OTD, $3000 (or 15%) less than the Costco price. And to their credit, when I noted on the Costco survey that I wouldn’t recommend the program to someone else, a Costco manager called and we discussed the experience, and they still gave me the $50 executive member gift certificate for parts & service. Overall, the service was top notch as always, but the savings just weren’t there for this particular model.
@ rose
Hi Rose,
Most (if not all) dealers have an internet sales team. SImply put, it’s just a salesperson who is responsible for dealing with online inquiries about cars. Often they can provide a simple no-haggle price that you can choose to accept, then go to the dealership and complete the paperwork. To access that person, simply find the dealer’s web site or just call the dealer. All of your potential vehicle choices are great cars. Be sure to schedule test drives for each one to find out which truly meet your needs.
For more tips on buying new, check out this article:
http://www.cargurus.com/blog/2009/01/12/eight-simple-rules-to-getting-the-best-deal-on-a-new-car
@matt
I’m going to take you up on your offer for more advice/tips on buying a new car. I haven’t bought one in 19 years! Not sure what this internet sales team is — is there one for each auto maker? How does one access it? And any other tips/info would be greatly appreciated (Am going to test drive Hyundai Tucson; Honda CRV; Suburu Outback; Suburu Legacy; and possibly Ford Fusion, then decide which car and which trim –it will probably be a higher-end trim line whichever make I choose, because of certain features I want.
Thank you for your time.
Costco Auto Program is definitely a scam. I was trying to avoid all the hassle, so I signed up the program and contacted the dealer (Marietta, GA). However, the experience was a completely disaster. First, the dealer’s attitude was horrible, basically he didn’t care if we purchased the car or not. He didn’t even offer to show us the car until we asked. Second, he refused to notify me when the new car was delivered. He said that he “might” call if the car was not sold yet. Finally, he gave us some price which didn’t sound right at all. After that, we went to another dealership which didn’t have partnership with Costco so we can check if the price was right. Surprisingly, their price was $1,000 lower than Costco dealer. Yes, ONE THOUSAND dollars less without negotiation. Plus, the interest rate was 2% lower and they treated us much nicer. Costco did a follow up call two days after and I told them this program was a joke. Not only I will never participate it again but also I will STRONGLY encourage everyone not to fall in the same trap. Overstock.com offers the similar program and you can complete all the process online. Don’t waste your time, Costco Auto Program is not even worth to try.
question
Was Costco rebate of $1000 in effect during July and August????
I called Costco for an appointment with a Toyota dealer. Costco gets a commission on every sales. I went to meet with the dealership with whom I had the appointment set through Costco and then met with a different dealership to deal on my own. I wanted to compare. I ended up saving more doing it on my own. On my Toyota Sienna 2011 the Costco deal was $500 OVER invoice and I negotiated without to much haggling, a deal of $200 UNDER invoice with a different dealership. So a $700 difference. So the Costco deal is too good to be true. Plus it feels like a scam.
Is the “Invoice Price” meaningless? My wife and I have been looking for a new car and this summer we were also traveling to weddings in Kansas City, Minneapolis, and Atlanta. As an experiment we shopped for a car (Chevy Impala) at a dealer in each city. We eventually got an “Invoice Price” at each dealer and guess what, they were all different for an identically equipped car. The difference between the lowest and highest prices was $850. Anyone know why there is such a big difference? Is the “Invoice Price” just as meaningless as MSRP?
I thought I was given a good price at the beginning of our talks.
However and this is a major However LOL
When I was ready to go to contract on a Nissan Altima the deal went South.
This Ct dealer started adding in all there fees.
1 $ 400 Conveyance Fee
2, $ 299.00 Vin etch fee on the windows
I was not able to negotiate these Fees away
I was told these were standard fees in CT
I checked Nissan dealers in NY and was given a better price without Costco and with out those Bogus Dealer Profit Fees Conveyance and etching fees
I researched the Costco Auto Program myself and the experience was very disappointing. Nearest Costco-authorized dealership to us was 70 miles away (and we live in Chicago!). We were not contacted by one of the Authorized Contacts but by someone else who asked us to e-mail him on his Hotmail-address. No-one ever showed us a dealer invoice price and the “special” Costco price offered to us turned out to be 10% higher than the manufacturer’s listed MSRP, which is clearly stated on their website. The actual price we managed to negotiate at a different dealership, for an identical vehicle with the exact same options, turned out to be 80% of the Costco member’s price. You do the math. I think walking into a dealership wielding your Costco member’s card is equal to wearing a big sign that says “sucker”.
I received 5200 in discounts of MSRP and it beat all other pricing!
The program works if you are an informed consumer and bring your edmunds TMV pricing sheets and do your homework. If you look like you just got off the boat most auto dealers will treat you as such. I did my homework and researched a 2010 Maxima SV. I found that the costco rebates as well as dealer rebates exceeded 5200 on a 34950 auto. They even offered me 1.9% financing with all theses rebates. The final sale price on this auto was 29700 and that is approximately 1100 less than the TMV prices from edmunds. The program works and don’t be discourage by the ignorant that think the world is out to get you. If you walk into the dealer with no clue of what others are paying and what you should be paying then I hate to say but you get what you deserve. Don’t be a fool, do your research and let the dealer know you are going to more than one dealership they will fight like rabid dogs to earn your business. To those that had a bad experience consider this “DID IT REALLY HAVE TO DO WITH COSTCO?” or did it have to do with your poor preparation and inability to show the dealership(s) that you know what you are talking about and were only willing to accept their best deal. Caveat Emptor! (that’s latin for let the buyer beware)
February 22, 2010
My complaint has to do with my impressions and personal opinions regarding COSTCO Auto Program. Negotiations with a dealer for purchasing a car through COSTCO Program began on and around January 20th. 22010. I am a long time member of COSTCO Buying Program and with the exception of auto purchases have had good experiences with the company. This is my 2nd attempt at trying to purchase a car through the Program.
ADDRESS OF COSTCO
COSTCO Members
Senior Management/ Board of Directors
Corporate Offices
999 Lake Dr. Issaquah, WA98027
Summary Statement: It is my view that the Toyota dealer mentioned below would have allowed me to leave his lot with a vehicle having accelerator defects; the very same defects which may have caused the deaths of several Americans; these defects were a matter of public knowledge. It is my belief that the dealer may have had advanced knowledge of the stoppage in sales because of a defective accelerator. As a matter of fact, the Wall Street Journal published a directive from Toyota on the 22nd of January: the paper reported that all dealers should stop selling 2010 Camrys and 2007 Avalons. The time period is precisely the same time period when I was negotiating with the dealership listed below, and encouraged by sales representatives to sign an agreement resembling a post dated check, then to drive a 2010 Camry off the lot.
Specifically, my complaint is against COSTCO Auto Program. I believe that the program should have provided information about problem vehicles to consumers. COSTCO Auto Program, responded to my initial complaint by defending the dealer. Instead, the Costco Auto program, should have taken strong and deliberate steps to make absolutely certain, that members are protected from unethical dealers.
..
Short Form My Personal View:
1.) Upon entering a dealer’s place of business and after asking to see the invoice and the Buying Program discount sheet, a Costoc member has no way of knowing whether the dealer is providing reliable information. Is the paper actually the invoice? â?¦an approved “Costco Auto Program Discount” sheet?
2.) Upon entering a dealer ship for comparison purposes; that is, at a time when you are merely checking out vehicles but basically undecided, a salesperson may disregard your affirmations about being a Program member and/or misrepresent himself as an authorized cooperating COSTCO representative.
Address
Mr. Stanley Managerl
Power Toyota
7970 South Autoplex Loop
Tempe, AZ 85284
3.) Finally, COSTCO Auto Program does not give warnings at the time of referral. In other words, certain makers may have made vehicles that developed mechanical problems in the past, but COSTCO doesn’t seem to provide information regarding problem vehicles.
A Very Dirty Trick: My Personal View
Following is a narrative detailing my impression and opinions about a recent experience during late January of 2010. My objective was to purchase a 2010 Camry or 2007 Avalon.
The Wall Street Journal reported that Toyota Corp had stopped all sales of several vehicles on Jan. 22nd. On Jan. 23rd, I was talking to two Toyota Dealerships, comparing prices.
1. Power Toyota (mentioned above.)
2. Riverview Toyota (located in Mesa, Arizona)
Both dealers, on the 23rd, made attractive offers, and seemed willing to have
Me drive the vehicle off their respective lots. I decided to close at Power Toyota, but for financial reasons, I wanted to delay the final transaction until
the 25th..
…
So the actual transaction would have occurred on Jan. 25th, a dark day in Toyotaâ s history.
â?¦
Run for it. Here comes the really, really dirty part.
Mr. Thomiisian, together with ânother sales person ‘ian’ insisted on Jan. 21rst or 22nd that I purchase the 2010 Toyota on the spot. (In reporting this to Costco, I made a mistake, with respect to dates.) The two men insisted that I;
a. Sign a contract that functioned as a post dated check.
b. Take possession of the vehicle, immediately, and drive it off the lot.
…
At this point I became suspicious, went home and checked with COSTCO. It turned out that the lead sales person Mr. Thomisian was not a COSTCO representative. The price he quoted for the vehicle was not a COSTCO price.
..¦
It is important to bear in mind that my negotiations with Power Toyota were b
Response from COSTCO: The Nasty Part
Why join an auto club if you are not sure of getting a fair deal? My purpose for joining Costco’s Auto Program was to obtain protection from unscrupulous dealers and to obtain a fair price.
…
In two cases, that didn’t happen. In one case, Showcase Honda, my wife and I were treated like criminals, and now–at Power Toyota, I came within an eyelash of purchasing a car that might have been a deathtrap. The same scenario might well have been repeated at Toyotaâ??s Riverview Toyota in Mesa, Arizona.
Again, everything written above is my personal opinion. I believe that my version of events is true, and I am willing to make corrections to any false statements. Copies of this complaint have been forwarded to Costo Auto Program and to Power Toyota. I have invited both organizations to make corrections.
BTW, East Coast Honda did not charge any fee to use the program either. That would be a BIG red flag IMO.
I used the COSTCO buying service this week. Like many I shopped online first and then got the COSTCO price. I was extremely happy with the experince and the dealer they referred me to. They responded to my inquiry the same day and it was a very easy process. I’m not sure about other areas, but in Myrtle Beach SC, Costco and East Coast Honda could not have been a better buying experience.
@ernesto read my previous comment about the Lexus. The Costco program is useless for luxury brands. I happened to have a good experience with it buying a toyota, but most of the comments in here, suggests the program being pretty lame, and nothing more than a referral program without any real substance to it.
@ filip – i was hoping that going on sunday feb 28, i could get a good deal but it didnt happen. the $750 fee to use the program is what surprised me…i knew something was wrong there.
You can get a better deal yourself with a little research….read below.
I tried to use this over the weekend. Shopping for a 2010 Acura TSX which on the website is 26,959 plus 810 destination charges. I go to the dealer and they say that price is wrong The costco price for the car is $27359 plus 810 destination charge…PLUS THIS IS WHAT GOT ME – $750 TO USE THE COSTCO PROGRAM.
Salesman didnt make the experience any better. I wanted a white car with black interior, low miles. He said that his manager tried to locate that and they couldnt find one in all of Southern California. All of a sudden they did find one but they had to get it from another dealer and it would be an extra $200.
I headed home and went to edmunds.com and carsdirect.com to do more research on the price and get quotes from other dealers. Next day, I get an email from a dealer that has the exact car I’m looking for and the price was $26998 with destination charges. After all my researching and quotes from other dealers, this was a good deal especially with 1.9% financing for 36 months.
Planning to give costco feedback on this experience. I’m not going to cancel my membership but the auto buying program wasn’t what I was hoping it to be.
hi Zoey ,
If a dealer wont give you a price over email or phone, then they want to haggle. My advice, ignore them, don’t go there. Most dealers understand that there is a competitive market and have a “internet department” assigned for customers that shop around over email and the web.
As for the Costco “special price”, I am now convinced it doesn’t exist. I had a good experience, but that is cause the dealership I dealt with made it really simple. I was able to custom order a car for $400 over invoice. And the dealership always printed the invoice prices for me, not the MSRP. But the Costco auto program is nothing but a bogus referral service. I’ve heard enough stories by now about people not being given a quote when they did the costco autoprogram, they just were told there is a “fixed” price. Well, that means nothing.
So keep shopping around until you find the best deal. If you want to haggle, go into the dealership the last three days of each month, when they have to make their numbers.
Hi! Zoey is back! :)
We finally decided that we wanted a 2010 Subaru Impreza wagon. The local costco dealer wouldn’t respond to internet pricing request, and insisted on that we step in and sit down to talk about it. There was a monster blizzard in Pittsburgh the day we wanted to go there, so we haven’t had a chance to visit them. Meanwhile, a local dealer was willing to match the price we found on Fitzmall, so most likely we will be getting our Impreza there.
I am still very curious about the costco special pricing, though, as the sales manager told me the member’s price is lower and they’ve been doing business with costco for several years.
We also tried to quote Sam’s club member’s price at another dealer. They did emailed us a decent price, which was lower than those first prices most dealer gave us. :)
Forst off the negotiation time of a car deal is on us ..the customer.. walk in and pay msrp and see how fast things go… it is not a dealers fault that a given salesman is not able to show you/me/us how the benifits out-wiegh the cost. A dealer is allowed to make money if they did not we would have no place to buy cars. Also the average salesman is not making what you might think.
As for the COSTCO program it does work and it does save time. Many vehicles are offered under invoice.
So keep in mind it is the customer that makes much of the process time intensive… walk in and work the payment… if your paying cash say I want to see the invoice. (there is only one) Pay $500 over and move on…
Hi Zoey, If you are cowering, do as much haggling as you can over the internet/email.
Ask the sales person to share the dealer invoice with you (this is not the same as the MSRP invoice) the dealer invoice is how much the dealer pays for the car. These numbers you can find on edmunds.com
Now, a car that you think is $22k on edmunds, can be $27k if it has $5k of options. So make sure the invoice he sends you, contains all the options. And then you go to edmunds.com and make sure you’re getting a fair deal
best
Filip
My husband and I would like to buy a Subaru Outback or Legacy in Pittsburgh, PA through the costco auto program. Has anyone had similar experience that you would like to share with us?
Alternatively, what is the possible OTD price we would expect to pay for a 2010 Subaru Outback 2.5i CVT, or a Legacy 2.5i CVT? According to Edmunds, the invoice prices for Outback and Legacy are ~$22,000 and $20,000, respectively. But the dealers we have emailed asked for more than $27,000 or $25,000 for these models. We are both of the cowering type, so what’s the best thing to do? Any suggestions? Thank you!
Ok, so after having a very pleasant and successful Toyota purchase, where pricing was fixed I got curious, how does this work with a Lexus.
I contacted the dealership, for a RX450h, a popular hybrid model, the fixed pricing is gone. Dealership told me that I’d get a $2500 discount off of MSRP, which brings me around $4800 over dealer invoice.
I guess the costco auto buying program is not for all brands.
@Nomie
Hi Nomie-
This is one of those cases where the salesman is probably telling you the truth. Camaro is a hot seller and Chevy hasn’t offered incentives on them. If you want one right now, there probably isn’t a ton of negotiating room. You could consider yourself lucky that the dealer isn’t tacking on extra, actually. You could try getting the Costco price and haggling on the price you feel comfortable paying, but if you wait a year or so, I predict more Camaros will be available and more discounts offered. You could also wait and look for a pre-owned model. Searching for 2010 Camaro listings here is a good place to start:
http://www.cargurus.com/Cars/l-Used-Chevrolet-Camaro-d606
Let us know what you end up doing!
hi Nomie, we all know the financial state of GM these days, so the sales person is definitely trying to take advantage of you.
If you were referred to this dealership through the Costco auto program, the dealer is supposed to show you the invoice and let you know exactly how much extra he is adding on to it. All in all, it should be a fixed price. You can then decide if you want that fixed price at no haggle, or you can use it to leverage a better deal somewhere else.
However, if you don’t know what the invoice price is, it’s hard for you to haggle as the only reference points you have are the dealerships. Edmunds.com does list invoice pricing for cars, you just have to be able to interpret the price list.
If you are a person that likes to haggle and enjoy it, then by all means. The best time to get a good deal is the last 3 days of each month. However, haggling can yield some good results, you can get to take off all kinsd of crap charges.
If you are a first time buyer, then I would recommend
http://www.carbuyingtips.com/
Spend some serious time reading that material, and you will get a better understanding into the car buying world.
best
Filip
I’m looking to buy a 2010 Camaro LT1. I test drove 2 models this weekend at a Chevy dealership and liked what I drove. There were only those two cars available in the entire lot. The salesman would not budge on pricing, stating that the demand for these cars is too high and the supply is low. He said there are zero incentives or “certificates” (discounts) for this car. So for all you savvy auto market connoisseurs out there, is this really the case? Is the Camaro really that sought after? I thought Chevy wasn’t doing to good financially, so they would be a bit more generous in order to make sales.
Has anyone tried buying or bought a Camaro recently? How did the purchase go? Has anyone use the Costco car buying program for this car?
Any advice would be much appreciated. This would be my first “new car” purchase and I don’t want to be taken advantage of!
My brother bought a car with the Costco Auto program and I just bought one through the Sam’s auto discount. Here’s how you have to play it – always email the dealership first, they will furnish an email for the point of contacts. Use both the Sam’s and Costco auto program websites to find dealers, the dealerships seem to usually be exclusively with one or the other. They will email you their offers if you’re up front with them if you tell them you’ve looked at the car and it’s down to numbers. See which one is the best, try to squeeze a few extra hundred out of them over email or in person then take that offer to your closest dealership.
My brother did that and he got a new Honda Accord LX for 18100. I did it and got a MB E350 with premium one for 48750. I’m sure I could’ve gotten a few extra dollars off if I drove all over Texas to all these dealerships to haggle one on one, but I did 90% of my work from my computer and only had to go to 1 dealership to get my car (my brother had to go to two because Honda and Toyota dealerships are the most vile creatures on earth and will do anything to suck a few extra pennies out of you).
Sam, sorry you had a bad experience. Costco Auto buying program is purely a referal service, nothing else. However, as part of the referral you can ask to see the invoice, and if the dealer doesn’t show it, walk out and file a claim with Costco.
The dealer will lose his lead generation.
I agree with Sam though, if you don’t get to see the invoice, walk out.
Costco claims they have negotiated “pre arranged prices” on behalf of their customers. This is a pure lie! When I wanted to buy a Honda Accord EXL 3 weeks ago, that is during December 2009, the dealer just refused to show us anything in writing that would resemble a price list. Their excuse was that they had better prices and discounts to offer… When we called Costco asking them to email us THEIR COPY of this so called “pre arranged price”, they came up with many different excuses in order to avoid honoring their deceitful publicity of “pre arranged price”. A pre arranged price should firstly exist and secondly protect the customer from becoming victim of all kinds of prejudices based on race, age, linguistic abilities, negotiation skills, etc. Costco guys are in fact as abusive and deceitful as their car dealer counterparts when it comes to honoring the existence of “pre arranged prices” they claim they have negotiated on behalf of their customers. Such pre arranged prices DO NOT EXIST! I challenge anybody to obtain a pre arranged price from Costco that could possibly be matched to the price their deceitful counterparts would or would not produce, depending on the customer’s look… In fact, I invite those of us frustrated customers who have time and resources to sue Costco for deceitful publicity to please do this service to the community. Costco can and should be sued for deceitful publicity on the grounds of the fact that they are not in possession of such thing as “pre arranged prices”. Pre arranged would mean prices previously arranged between two parties. Such previously arranged price, for any given model, can only exist if it has been written somewhere and can be communicated to the customers, or to the court of justice for that matter. Good luck obtaining “the pre arranged price” from Costco! In the meantime, I invite the readers of this text to feel free copy and paste it in any consumer protection or Review Website.
beware you will find big price differences for costco at different dealers. sweetheart agreements between the brothers at the dealer and the costco auto program.
Here is my 2 cents about the going through the costco program, as well as what i’ve found works even better than face to face negotiation. This of-course will take you to a point and then its up to you to get the price even lower if you want to.
First off i’ve been in sales before (not car sales) and i can say for certain the “invoice” price they show us is made up, the dealer probably has a couple of variations depending on how they size you up (i too have done this) The dealers are out to make the most profit for themselves and they do that by various ways which have been posted here.
Anyways here is my experience with the costco auto buying program.. I’m in the market for a 2010 Honda pilot i went through to the local dealers and they gave me a price of $33,735 the sales person swore up and down that this is the best they can do, showed me the doctored up invoice price.
Came home, went to cars.com and clicked buy and emailed 6 local dealers and told them that. I’ve test drove the pilot, i like it and i’m going to buy one in the next 72 hours I have excellent credit, i’ve been already pre-approved for a loan with a local bank, but their interest rate may interest me. and i told them the exact car i was looking for and all i wanted is their best price they can sell this car, because thats going to determine if this was going to work (after all i wasn’t buying a taylor made suit where i needed the extra care, attention, the service; service comes later, now is the time for me not to flush money down the toilet)
Here are the responses to my request. Same car same everything.
Dealer A 33,735 (costco auto buying program)
Dealer B 33,135
Dealer C 33,600
Dealer D 33,135
Dealer E 31,926
Dealer F 33,636
This includes destination fee. no tax, lic, doc fee A few dealers stated “bring my your best offer and we’ll beat it”
In conclusion, its business its not personal.
Blog author, you can remove my previous comments, here is the final one with all the correct answers.
Ok, since it turns out that I am 10 times more paranoid about getting scammed than the author of this great blog, I’ve done some extensive research.
The disclaimer, this applies only to Toyota, turns out other manufacturers do things slightly different.
Since I’m buying a Tundra, I worked with the Tundra solutions forums, where many people have posted both helpful and not so helpful information.
http://www.tundrasolutions.com/forums/pricing-and-dealers/180018-holdback-tda-wholesale-financial-reserve-clarification/
Towards the bottom of the post, I clarify some of these charges.
best
Filip
Line items:
Destination charge: $950
TDA: $726
Dealer holdback: $656
Wholesale Financial Reserve: $328
Let’s clarify them once and for all:
1. Destination charge: $950
everyone must pay for this. Even if you are a neighbor to the factory. It’s a federal law that everyone pays the same on the same kind model during the same time period (this cost has gone up since 2007)
2. TDA – Toyota Dealer Advertising: $726
This is a true dealer cost, the dealer pays this to Toyota for advertisement and is NOT refunded the fee when the vehicle is sold
3. Dealer holdback: $656
When the dealer buys the vehicle from Toyota, the dealer DOES pay the line item on the invoice he shows you. When the dealer sells the vehicle he gets refunded this fee
4. Wholesale financial reserve: $328
When the dealer buys the vehicle from Toyota, the dealer DOES pay the line item on the invoice he shows you. When the dealer sells the vehicle he gets refunded this fee
So if you pay these fees, you’re simply ensuring that the dealer makes $328+$656 on the vehicle. Guaranteed. Nothing wrong with this.
So why all the confusion, and sites like carbuyingtips.com saying never pay these fees? The confusion is cause all car manufacturers do it slightly differently. Also website do it differently too, if you go to edmunds.com, they usually include these fees in the base price of the vehicle, while when you look at the Toyota invoice, its split out as separate line items.
John Poe, posting again here. I’m getting conflicted information on the holdback here. Toyota seems to operate differently. Toyota MFG collects the holdback from the consumer and doesn’t cut a check to the dealership for that same amount.
A neighbor explained to me that Toyota simple collects all the charges
– Dealer holdback
– TDA
– Wholesale Financial Reserve
directly from the consumer.
Toyota then run incentive programs (cashback, apr, etc( from the money they make on these charges.
Printing an invoice from a toyota dealership will always have these charges on there.
If you buy another brand, then the process works differently.
That is how I was explained the process worked. I would appreciate a post that would explain if I am just being bullshitted or if Toyota actually runs their system like this.
best
Filip
John Poe, thanks for the clarification on the dealer holdback.
I love everything about Costco but have yet to try their auto buying service. In April ’09 I purchased a 2009 Honda Odyssey EXL for an incredible deal. My best advice is check out Edmunds.com’s page for current dealer incentives and rebates that are being offered in your zip code and also Edmunds true market value application on their website. And the very best advice I can offer is only deal with the internet side of the car dealership. The salesmen seem to understand that people who use this route to buy a car don’t want to waste time and have done their research. I’m a 40 year old woman who went to a dealership alone and walked out two hours later with 2.9% financing, got the price I wanted and even a few extra’s thrown in. Do the research, be in control of the transaction and you’ll get your deal.
http://www.edmunds.com/incentives/RebateController?step=1&tid=edmunds.n.incentivesindex.incentives.2.1.*&setzip=30024
Re: The 2010 Tundra Crewmax deal described above. Having purchased over 60 vehicles and dealt with dealers and fleet sales managers the Toyota dealer is putting the “screws to you”. If he’s putting the “Dealer Holdback” as an expense on the invoice, you are paying twice! This is the money that Toyota pays the dealer for selling a vehicle in a timely manner (it generally reduces in size as the vehicle remains on the lot and paid quarterly to the dealer). So it’s profit from the mfg., not due from the customer. Same with the “marketing charge” and “financial wholesale reserve” (whatever that is). This is overhead expenses to the dealer and not charges on a dealer’s invoice and due from a customer. Only the “destination charge” is normally found on an invoice. So all the rest is additional profit on top of the Costco profit listed. You can go to several sites and get “true” invoice prices for the vehicle and compare with the trumped-up charges your dealer has added.
p.s. Dealers are also paid for “dealer prep” from the mfg. and shouldn’t have to be paid again by the purchaser. I’ve purchase many vehicles under invoice and up to $100 over invoice from dealers and their fleet managers.
My husband and I have used the Costco program several times and love it. While I love a good haggle, I’m tired of the hours it takes to achieve the final price. We’ve found that the program isn’t the same from state to state. We lived in CA and used the Costco program three times there, we were always happy with the price and the dealer did show us the invoice. In Colorado the dealer said his advertised price was better than the Costco price. This didn’t quite sit well with us and we did not buy the car. Like anything, one shouldn’t go into any negotiation blind. Do your homework, find out what the car of your dreams it worth with and w/o options. Then you’ll be ready to sally forth and slay the car dealer. ;-)
@ASB
ASB-
Did you get the 2010 4Runner last weekend? I’m sure you could get a great deal on a 2009 model, and would be surprised if the 2010 model truly is demanding full MSRP. It is, afterall, still a body-on-frame SUV and those aren’t exactly flying off dealer lots. Haggle if you can, but if the dealer(s) won’t budge, I’d wait a few months before forking over full price and seeing what happens with that “trickling” inventory story. It’s at least worth seeing though what the Costco price is, then visiting other dealers and asking if they can beat it. Let us know how it turns out!
If doing it yourself is not for you, there will soon be a service that does it for you, for a flat fee of $150.
Here’s how it will work.
http://carandbuyer.biz/DisplayPage.aspx?pgID=MjQ=&paID=NA==
I want to purchase a 2010 4Runner Limited this coming weekend. I can use UBS through my credit union or Costco. When I test drove the vehicle during the week, the salesperson from the dealership I visited told me that there will be no negotiating on these vehicles; they are going for MSRP. Apparently they are “trickling” in from Japan to the US slowly.
I’ve spent the last few weeks ‘shopping’ over the internet, and have requested internet prices through places like edmunds.com, but most dealerships won’t send me prices through email, and instead ask me to come in. I made a request through Costco and got a reply from a dealership. Do you think it would be worthwhile to call the local dealerships and ask them for their best price (doing my shopping by phone), and comparing the price to the Costco discounted price (which I do not know at this time)?
Fortunately (or unfortunately) we do not have a trade-in.
Does my approach sound reasonable? Do you think I’ll be able to get any discount at all on the 2010 4Runner?
Thanks in advance to any suggestions you may have. =)
This is some great information. Thank you all. I was hesitant but this helped ease my stress. I know not everyone had the best experience but I am no haggler and I think this program is a good starting point for me. I am car shopping this weekend and am starting the Costco process through their site. With an 8 and a half month pregnant wife we can’t afford to waste time haggling over a bigger car from lot to lot although the last time we bought a car she was also 8 months pregnant and it helped in lowering the price. Maybe this time we can use both to our benefit.
One thing i would like to see at the starting point is a list of dealers in my area (San Francisco) that use the program instead of having to input the car I want and getting one dealership in return that is 60 miles away but when I input a different car (same make) I get a different dealership. I want to see them all.
We are also considering the Certified used ones too.
Thanks everyone!
The Costco auto program does work, and it works very well. If you’ve had bad experience, why just complain about it, you have a company to take your complaints to. And rest assured, the shady dealer that didn’t comply will most likely not be able to participate again.
We had a fantastic experience. I was looking for a 2010 Tundra Crewmax. The dealer that we got referred to made the experience so easy. Here is how it worked
1. the pricing is easy, $399 added to invoice price.
2. Pick any car you want, he’ll show the invoice
Now, in our case, the whole purchase was done in less than 30min. And we did NOT buy a car from the lot. We custom ordered one. The cars they had on the lot, had too many options, that we didn’t want to pay for.
So, why spend hours haggling over a car that has been test driven and may not be the exact car you want.
When someone says, they will sell you a car $2k below invoice, they are full of it. A dealer can’t afford a $2k loss, period. You must understand how the pricing works.
For example, on a Tundra invoice, there are a few things added
1. Destination charge – charged by Toyota $900
2. Dealer hold back, roughly $600 – this is the dealer profit
3. Toyota marketing charge – $900
4. Financial whole sale reserve $300
5. Costco Auto program charge $399 (sales person commission)
Nothing else on the invoice is negotiable, and some of the charges above, are not negotiable either.
I know that the dealer hold back, and the sales person commission is what is negotiable for sure. I’m not sure about the Toyota charges, I intend to find out more since we haven’t paid anything yet, not even a deposit for the car we ordered.
So we are still not at a loss here.
But if you ask me, would I want to spend 5 hours at a dealership haggling over a few hundred bucks. Definitely not, I like to pick the exact car I want, know that it is brand new, pay for it, and get out of there.
As I said, the process took 30minutes, and most of it was walking around deciding on colors (interior/exterior) trim etc. The actual office time with the sales person, was close to nothing.
I highly recommend this program to anyone who wants a hassle free purchase. You will not get the absolutely lowest price, you can haggle lower. But you will definitely not get ripped off, in fact, you’ll get a better price than the majority. That is guaranteed. So decide how you value your time in money, and go for it. Haggle or no haggle, make sure you understand all the numbers on the invoice sheet.
A word on trade ins, you always get screwed here. So make a decision, since its your option to do a private sale on the trade in instead.
Filip
The Costco Auto Program is a JOKE. Once we located the car I wanted the dealer had me come in to “finalize the purchase”. Never in the weeks waiting for the car would he explain how the program worked or talk money. Just kept saying that I would be happy. Well $250 under MSRP was a waste of my time. So as I was walking out the door he started doing some realistic talking and after the usual negotiating, I did buy the car at a price $1430 under what the “Costco No Haggle Auto Program” offered.
The next time I buy a new car I won’t waste my time with the Costco Auto Program. I’m sure I can do much better on my own.
Anyone had any experiences with Costco purchase program for Toyotas in the San Francisco Bay Area?
This will be my first time buying a car with out some help and I like what you are saying. Keep up the good work. Al.
I have a 1999 Deville only 60,000 miles good condition. Do you think I can get a good deal on a 2009.
@Ralph
When I was shopping for a car in 1985, the Toyota dealers were sitting on top of the world and they knew it. The salesman at the local Toyota dealership never even looked up from his newspaper as he told me something like “If you want a Toyota, give us $500 and we’ll put your name on the waiting list, and when you get to the top, you’ll be permitted to buy the next Toyota that comes in.” Forget about choosing color or options. I don’t think they would even let me choose the model. But they could get away with it then. Ten years later, they were still trying to pull the same thing. As soon as I became aware of the Costco plan, I went with them. Got a Subaru that time. The dealer still managed to squeeze in a couple extra-profit fees, but it did make the process simpler and probably saved money over doing it myself. But you’re still at their mercy with the trade-in. Fortunately I have an arrangement that is slightly less painful. I go to the dealer, tell them that I’m not sure whether I’m going to trade in my car, and ask them for a trade-in price, and a separate purchase price that will remain constant regardless of whether I trade-in. I negotiate as best I can on the trade-in, and then I sell my old car to my brother-in-law. He’s happy because he gets the car for far less than it’s really worth, and I’m … well not quite as unhappy as I would be otherwise, because the money I lose at least stays in the family.
btw: The local Toyota dealership is on a low-lying piece of land that got flooded by Hurricane Floyd in 1999. While the user-car dealer next door had all his salesman out driving all their cars to the Home Depot lot across the street, the Toyota dealer just sat there and watched. The only thing he rescued from his place was his flood insurance policy. The insurance paid for all his used cars that got flooded, and for a complete rebuild of his building. The used car dealer has since gone out of business but the Toyota dealer is still there. Go figure.
In Denver the Toyota dealers add $499 as dealer prep for putting air in the tires and oil in the engine. Does the Costco price eliminate this charge? Does the purchaser still have to bargain with the dealer about those very valuable add-ons like Scotchguard on the seats and stripes on the side of the vehicle? In the past I purchased a few new cars through my Credit Union and the quoted price was the final price except for taxes, title, and license fees(no dealer prep or add-ons).
For neophyte buyers it’s worthwhile to note that the Dealer’s invoice price is higher than the invoice price (including the destination charge) listed on the kbb site.
It was 1 percent over the invoice on my last purchase.
@Robert I’m writing a story for a national personal finance magazine about car buying services like Costco’s and would like to talk to customers about their experiences. Please email me at dfonda@hearst.com if you’re interested.
With the whole US car industry desperately trying to sell cars its time not to take any shit from car dealers they need to sell cars or become extinct so make your offer if the dealer doesnt like it walk out his stock costs him money to argue over so the customer has the power.
@A
Good luck! And yes, please do let us know what your experience is like.
I am currently in the market for a new car. After weeks of looking my husband and I have finally agreed on the Mazda CX-9. I did a little negotating yesterday at a dealership and really got nowhere. I think they really thought they could take me for a ride since I was there without my husband. I have now contacted another dealer through the Costco program and I am going to see what kind of price they come up with for the same car. I will let you know what happens…
I went to two dealerships yesterday. One was a Honda the other a Nissan. The Honda guy showed me that the Costco price was invoice plus $50, but he never showed me the invoices of the two cars we talked about (and i asked for). The Nissan guy told me invoice minus $100, and did show me the invoice for the car I drove. The Honda dealership started offering me $300 bellow wholesale price for my 2007 Ford Focus with only 38000 miles. The Nissan guy $2000 bellow wholesale. It looks to me that the Costco program works only if you do not have a trade-in. The dealerships want to make the money lost with Costco on your trade, plus make a bunch more. On top of that the cars had “extras” that I did not want and they added $700-800 to the price of the car. They told me they had this “extras” because everybody wants them. I don’t. One more thing: If you are going to use the Costco program, when you see the final paperwork look for all the inflated extra “fees” they will charge you: documentation fee, registration fee, manager’s fee, coffee fee, cleaning fee, etc. Good luck!!
I don’t usually get all fluffy over any particular retailer, but I have to say that 3 months ago I bought tires through Costco and it was a great experience; high quality tires that I would never have normally bought, at a great price, including the $70 off that someone above had a problem with. So I’m willing to look at this program. I don’t like the hassle of haggling, but paying more than I need to is like drinking poison to me. I usually get the dealer invoice price from Edmunds and offer a couple hndred over that, but if I can easily get a price close to my best efforts, than this is worth it.
We bought a Toyota Tundra through Costco a while back, after talking to a couple of friends who had already done it. I have to admit, it was the only pleasant car buying experience we’ve ever had. The only thing you have to dicker over is your trade-in. My neighbor told me that his sister was a employee at Costco. Her job was to go “car shopping” to check that dealerships were giving the Costco price. Months later, when having our truck serviced at the dealership, the mechanic told my husband that he bought his new Toyota through Costco because it was a better deal than he could get as an employee. We’ll never again sit at a dealership for hour after stressful hour, hoping to get a good deal.
I’m so glad I found this webpage! I’ve been doing research online w/Costco Auto on the 2009 Hyundai Santa Fe or Toyota Venza (we’ll probably go w/the Santa Fe). I was nervous and wondering how the Costco program works and it seems to be what they say it is. We are going to go to a dealership to test drive them both this weekend but they won’t get too far with us! I have even been hesitant to fill out the online info for Costco to contact us because I don’t want to get car dealer harassing phncalls. I feel much better now.
By the way – Randy – I laughed out loud when I read your comment, that’s hysterical!
@ally
ally-
We’d love to know what car you got and how you did on it! Thanks for dropping by.
OMG. I am so glad I read up on all of this. We are members of Costco and Sam’s, and I don’t know why I didn’t think of their auto-buying program before. We were negotiating with a dealership before realizing we might be able to do better with Costco. My boyfriend is at the dealership now. He just texted me that the salesman/manager wanted to explode when hearing the word “Costco.”
So, I believe that even the Costco price is negotiable.
I, too, decided to “shop” around (and still am). The non-Costco price I came up with was $16,100 — but “the General Manager is really motivated and probably can do better than that.” I haven’t gotten to the General Manager, yet. The Costco price at the different dealer was $15,500. I asked the manager “Is the Costco price the very best price I can get?” He said yes, that it is $700 BELOW invoice.
I decided to e-mail the dealer with the Costco price and say I can afford $15,000 even — he called back and begged me to come in — that we are very close and can work something out.
I just spend all day looking at a Toyota, then came home to find that the price was $3,000 over invoice price. Lucky I didn’t buy it because it seemed just a tad bit high. Costco would have saved me time and money and maybe I’d have a car today.
@Ms. E
Hi Ms. E,
While you might get a better deal on a Chrysler Aspen, the Chevy Tahoe might be the better choice. Chrysler will discontinue the Aspen while the Tahoe consistently gets good reviews and is a dependable choice. With the Costco deal, you can’t really go wrong on it.
Here’s an article with more tips on getting a good deal:
http://www.cargurus.com/blog/2009/01/12/eight-simple-rules-to-getting-the-best-deal-on-a-new-car/
Matt, you offered advice to others on how to haggle with car dealers. Since I’m a female they really salivate like dogs when they see us coming. Costco does not have a Chrysler dealer in it’s program, but that’s the product that I am interested in. I want the 2009 Aspen by Chrysler. I normally view online, and have navigaged through Edmunds. What’s the best best way to get the price you want? I go into it well informed about the vehicle I want, so what are some other tactics that I can use? Also, I like the Chevy Tahoe which does have dealers participating in the Cstco program.
I purchased 4 tires through Costco’s 70 dollar off sale and called salesperson to doublecheck it and more than one employee verified the link http://tires.costco.com/TSSapp/TireLanding.xhtml was for the tires I bought and they won’t honor the discount now. they said it was for tires that weren’t on it but the tires I bought were from the link they had online, they offered no good faith gesture, Starbucks gives you a free coffee if your unhappy! I would have to say their tire sale is a scam that get a small percentage of all the clickers but they don’t care! and it is obvious after at least 8 e-mails to them. Beware they don’t tell you ahead of time if the ones you click on aren’t covered and even when an employee confirms that they are (i had the name of the employee and extention, it was even on their computer noted) they won’t honor and basically they took the bully approach, they don’t care! Will not honor it, and no good faith friendship offer! Simply you were took, get used to it!
To all of you who are the cowering type:
You really need to try going through the internet sales team and using something like edmunds.com…that way, you never step foot into the dealership, (once you’ve settled on your car type) you control the pricing at all times (remember, you can tell them you need to speak to your manager too (then hang up)….and you really get to piss them off. You always know your price, can check theirs against the bottom line, and the worst that can happen is they say, sorry, can’t do that….I’ve bought my only two new cars that way, and the last one, a 4 runner, I figured the deal was cancelled, since the guy’s manager said, no way…Then, about two hours later, the sales guy called me and basically pleaded with me, what are you doing? Trying to break my balls? I told him, no, I want to buy a car at my price…..I made one more pitch, adjusted my price by 200 bucks, and he said, be here in an hour, which i did….He barely looked at me (which I loved) and the paperwork was signed within 1.5 hours. He never seemed so pleased to see me leave the dealership.
If anyone wants more tips, feel free to contact me
Matt
@Randy
Randy, that’s officially your funniest comment of all time! Hats off to you, sir.
Look on the bright side… At least they don’t make you buy six of them at one time. They could improve their program, though, by providing a free casket and flowers if you die in the car while you own it.
I used the Costco Auto Program about a year ago… like you said, “if you’re the kind of person who cowers at confrontation and despises negotiation…” well, that is me! I went in with my wife to get her a new car (her car was stolen) and the dealer convince us to look at cars that we thought were out of our price range! I thought why not, at least we could see the price that Costco negotiated for us… and you know what? We saved almost $3,000 off our 2007 Toyota Corolla – putting us right in our price range! If it was not without the Costco Auto Program, we probably would be driving a 2003 POS that my wife though was the best vehicle in our price range! Hahaha, I laugh at dealerships now, because the Costco Auto Program made it easy for people like me!
Heck! I am willing to part with $300! Last time I purchased a car, the whole negotiation took about 3-4 hours. That is 3-4 hours + 2 years off of my life I would gladly pay $300 to get back. When will dealerships figure out that the best way to not intimidate potential buyers is to be up-front about the whole transaction. I shudder at the idea of buying another car.