Costco car program can't be beat, right?

cantdrv55 · 03-19-2011, 07:48 PM

I've compared Costco's MSRPs and invoice pricing with those at Consumer Reports and they're right on. Costco dealer partners will sell below invoice. Any reason you can think of to not use this program?

Steve Carlton · 03-19-2011, 08:00 PM

Costco prices can be beat, but I wouldn't expect by much. Their prices only apply to what's in stock, which isn't a very likely situation. I'd be more concerned with dealing with someone who will be honest with you about what's available vs what they want to sell you.

What are you looking for and where are you located?

Noah930 · Noah930's Garage

The couple times I bought new cars, I found I could get better pricing by contacting dealers (internet salespeople) myself.

cantdrv55 · 03-19-2011, 11:01 PM

Quote:

Originally Posted by Steve Carlton

Costco prices can be beat, but I wouldn't expect by much. Their prices only apply to what's in stock, which isn't a very likely situation. I'd be more concerned with dealing with someone who will be honest with you about what's available vs what they want to sell you.

What are you looking for and where are you located?

I suspect I'm not too far from you (Solano County). Looking for a reliable, relatively high fuel mileage, small wagon or hatchback. AWD preferred but not a deal breaker as well as more fun to drive than a Prius or Civic. I've looked at a CX7, CRV, Mazda3, Subaru Impreza wagon and a Tucson. Can't make up my mind so looking for the best deal.

71 3.0 911 · 03-20-2011, 02:29 AM

I have found Costco pricing to be competitive but not the lowest you can get. The trick is patience. It usually takes me up to a month to buy a vehicle from constant negotiations. I sold my 05 Subaru Outback on Craigslist and bought my 2011 Highlander pretty much online. Never talked to a salesman. Just communicated directly with the sales manager via email. Bought my last 2 vehicles that way. Just showed up, signed the papers on the previously agreed to conditions, and drove off in less than 30 mins. Way lower stress. I got 8k off sticker on my Highlander.

Steve Carlton · 03-20-2011, 05:04 AM

Sent you a PM.

ben parrish · 03-20-2011, 05:22 AM

I bought a Jetta last year. Decided on the car and options by visiting a couple of dealerships. I then inquired online with three dealerships. Quickly eliminated one dealer and went back and forth with two. When I got as low as I thought I could go, I called both sales managers. I told them I was going to buy a car that day and asked for a grand off the lowest bid I had got.
The dealer in Greenville SC (Steve White) stepped up and said if I took one off the lot that he would meet my price. 2010's were about to arrive and they needed to move the 2009's left. So, I got a 2009 Jetta with leather, sunroof, DSG transmission, bluetooth, satellite radio, foul weather floor mats for $19.5k out the door..all taxes and tag fees paid. I then traded in the Yukon for $3500 so I only borrowed 16K. Walked into the dealership at 5:15pm and drove away at 6pm. I have since sent a few people there to buy cars and they all received better deals there than they had expected.
Ask around and I bet you will get a recommendation from friends on which dealers are willing to work with you.

notfarnow · 03-20-2011, 06:32 AM

Quote:

Originally Posted by cantdrv55

I suspect I'm not too far from you (Solano County). Looking for a reliable, relatively high fuel mileage, small wagon or hatchback. AWD preferred but not a deal breaker as well as more fun to drive than a Prius or Civic. I've looked at a CX7, CRV, Mazda3, Subaru Impreza wagon and a Tucson. Can't make up my mind so looking for the best deal.

Have you driven a Suzuki SX4 yet? Smaller than any of the cars you mentioned, but a schitload of fun. A bit bigger than a Yaris or Fit, but with a 2.0 and AWD. I had one for a couple days and just fell in love... an inexpensive but FUN FUN car, especially in the snow

kaisen · 03-20-2011, 07:23 AM

Costco and Sam's Club programs are revenue streams. Period.

Dealers pay huge contractual fees to Costco to become the recommended VW dealer, or Toyota dealer, etc for that store's area. They buy an exclusive territory. If you visit your local Costco, you will be pointed to whatever store paid to be their exclusive store. Visit another Costco, and you might be referred to a different store, with different pricing.

Buying a car isn't that hard. Pick the dealership you'd like to have a long term relationship with and you'll figure out how to make a deal. Every dealer pays the same. So every dealer can sell for the same. Good luck.

Zeke · 03-20-2011, 03:00 PM

Quote:

Originally Posted by kaisen

Costco and Sam's Club programs are revenue streams. Period.

Dealers pay huge contractual fees to Costco to become the recommended VW dealer, or Toyota dealer, etc for that store's area. They buy an exclusive territory. If you visit your local Costco, you will be pointed to whatever store paid to be their exclusive store. Visit another Costco, and you might be referred to a different store, with different pricing.

That's good to know.
...................................

Quote:

Originally Posted by kaisen

Every dealer pays the same. So every dealer can sell for the same. Good luck.

Eric, I have agree with you in principle, but we both know that old stock can have incentives and new arrivals have accumulated no flooring costs.

Or has all that changed?
I'm sure it all averages out.

Steve Carlton · 03-20-2011, 05:25 PM

I've never heard of old stock having incentives that the new stock doesn't have, unless it's a model year older. Dealers don't really look at accumulated flooring costs, but they do look at how old an old unit is and are motivated to get rid of it for less than a newer one.

Different dealers have different perceptions of what an acceptable profit margin is. They also tend to give better deals to local customers or to deals with a trade-in or financing, as the local customer will become a service customer vs one from far away. A trade-in and financing is another opportunity to make some money.

As Eric said, Costco wants a big fee up-front ($1,500) plus a hefty monthly fee. They also try to dictate what the dealers pricing should be relative to invoice. They have no idea what the supply and demand situation is, and don't care. So the dealers are paying a lot to sell cars a lot cheaper than the want to.

rnln · 03-20-2011, 11:22 PM

also, some sales manager is ok to make $100 bucks per car; he is in for quanitty, but other sales manager might not want in for even $200. Also, depend on how many cars he already sold that week.

Zeke · 03-21-2011, 01:02 PM

Quote:

Originally Posted by Steve Carlton

I've never heard of old stock having incentives that the new stock doesn't have..............

When I sold cars for a very short time, I sold one of 2 identical current year new cars on the lot. The one I rolled was months older. I got a $75 factory spiff over my commission for rolling that car.

This was at Chevy.

gtc · gtc's Garage

Costco's prices are great, but who needs a 10-pack of Camry's?