Can Costco Become the Largest Car Dealer in America?

Costco auto program

Costco doesn’t sell cars, but it’s the second-biggest car dealer in the country.

That’s an oxymoron that’ll make your head explode, especially when you consider that the only organization to move more metal than Costco is AutoNation.

Costco’s wildly popular car buying service has been used by hundreds of thousands of people over the years, most of whom chimed on our blog post questioning just how good a deal Costco offers when it comes to cars.

Of course, it’s not possible to walk into Costco and drive out in a new car. The service is really just a middleman between the dealer and the consumer.

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The Surprising Fact About 10 Cars With the Highest Resale Values

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Everyone knows that the value of any car you buy will plummet with every passing year. Unless you’re purchasing a 1964 Ferrari 250 GTO, you can be sure that the value of your car in 5 years will be significantly less than the price you paid.

That’s the bum deal about cars, and it’s true whether buying new or used. Leasing is gaining in popularity for this very reason. The only exceptions to the rule of depreciation are a few collector cars that go up in price every time they hit the auction block.

Any car currently for sale at a dealership in the U.S. won’t be going to a prestigious auction anytime soon, so the best we can do as buyers is to purchase cars that depreciate more slowly than average. The 10 best cars for holding their value are listed below, and they all share one common trait.

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The New Car That Costs $89 Per Month

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It’s like we’re living in 1963.

I honestly don’t know when the average car payment in the United States was below $100, but I do know that today it sits at just over $480. If you buy or lease a new car in this country, odds are pretty good that you’ll be somewhere in the $200-$500 per month range. The lower end of that range is reserved for low-payment leases and bottom-of-the-barrel entry-level cars.

So when one of the world’s largest automakers promotes an $89 lease, or even lower in some areas, people will pay attention.

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GM Offers Best Rewards for Military Service

Corvette convertible

Memorial Day weekend fast approaches. It’s a great time for new and used car shopping with summer just around the corner. More importantly, it’s an important time to recognize the military men and women who made the ultimate sacrifice for our country.

Some automotive manufacturers extend special discounts to military personnel (and sometimes retired veterans) that might be worth considering if you’re shopping for a new car. Check their websites to find the models you might want. (The website MilitaryRates.com has a list of companies offering discounts.)

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Be Like Floyd: Mayweather and His Car Dealer

Floyd Mayweather Mercedes Ferrari

When a ridiculously rich and famous athlete wakes up at 3 a.m. with the sudden urge to call his dealer, it’s normally not the kind that sells cars.

The online media has exploded with stories about tomorrow’s bout between Floyd Mayweather and Manny Pacquiao, with one of the biggest stories being, oddly enough, the cars of Mr. Mayweather.

When you or I wake up in the middle of the night from a dream in which we owned, say, a Bugatti Veyron, we shake our heads at the unlikelihood of it and go back to sleep. When Floyd Mayweather wakes up and wants a Bugatti, he calls his dealer and has a new Veyron in the garage by breakfast. That in itself is incredible, but it’s not the real story here.

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Can a Hyundai Be Better Than a BMW?

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There’s something seductive about the idea of buying a used luxury car.

Getting a car that will make friends and family swoon is exciting, so why not cruise around in the kind of style only a used Jaguar or BMW can offer?

Stepping a few model years into the past can get you a car that costs less than an entry-level new car. Plus, used luxury cars usually have better driving dynamics and possess way more brand panache than your average new Hyundai.

However, buying older luxury can cost you more than you might realize, and not just in maintenance costs.

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How to Have a Great Car Dealer Experience

Mercedes-Benz dealer

Car dealers don’t want to rip you off.

All dealerships are in business to make money, provide jobs that pay a decent wage, and build long-term relationships with customers. To succeed they know they have to treat their customers well from the first moment of contact.

There’s a common belief that dealers just want to take as much money as they can from a buyer, which has created a lot of fear in people when it’s time to visit a dealership.

Those fears are amplified when articles are posted that proclaim to show the buyer how to avoid getting ripped off. It’s true, dealers will try to sell you products or services that you don’t need or are not a good value, but all you have to do is prepare a little to make sure you know what to decline.

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Want a Performance Car? Don’t Buy a Forester

2015 Subaru Forester

Certain machines come to mind when we stop to think about cars that are built for driving. The usual suspects are BMW, Porsche, and anything else that can be brought out to the track and tear things up straight from the factory floor.

The Subaru Forester isn’t one of those cars. It doesn’t see much track time, nor do people customize it to make it as fast possible. That’s because a Forester, no matter what is done to it, is still a Forester. It’s the hiking boot of the auto world—not luxurious or fast, but it’ll get you to some fun places in relative comfort.

The Forester plays in a niche segment that also includes the Honda CR-V, Toyota RAV4, and Nissan Rogue. These are not fun cars to drive. They are nice to drive, don’t get me wrong, but no enthusiast alive would call them particularly entertaining when behind the wheel.

A Japanese tuning company thinks it can change that.

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Volkswagen Tiguan: The Next Honda CR-V?

2015 Volkswagen Tiguan

 

Who’s buying the Volkswagen Tiguan? That’s the first question.

Second, who’s buying so many of them that Volkswagen needs to invest a billion dollars in upgrades to the plant that will make the next version?

The 2017 Tiguan will be built in a plant capable of cranking out 500 of the crossovers per day. Sales figures for the past year in North America tend to average about 2,000 vehicles per month.

That’s a bit of a disconnect, don’t you think?

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Sell the Honda, Buy a Kia?

2014 Kia Soul

A friend of mine had a beautiful, low-mileage Honda Pilot for sale.

This is the kind of guy who keeps the paperwork on everything he buys and has required service performed at the recommended intervals and only at authorized locations. He buys reasonable, practical items, but only gets the top-of-the-line versions of them.

Let me give you an idea of what kind of guy this is. When I purchased a used hot tub from him, he handed me a manila folder with every piece of paper it came with and receipts for every service and part, sorted by date. And laminated.

So when this guy sells a car, the buyer gets a pristine example of what a used vehicle should be.

When he told me he wanted to sell his Honda and get a Kia, my reaction was two-fold.

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