Costco Auto Program

[moijea]

How much do you think you saved? Was it worth the hassle?

[MarvBear]

IMO, one can do better without them.

 

I have signed the dealership up with them in the past.

 

The people still shop anyways.

 

Of course, mine is an insider view.

[Pavlov]

Not sure what you mean " hassle ". When I used it to purchase my SUV last year, it saved me countless hours and plenty of money.

 

What hassle do you mean, exactly?

 

I just noticed Marv's post. I should say that Marv and I agree on most things, except this. Mainly, because Marv looks at it from the dealership's perspective, and I look at it from the consumer's perspective. I agree with Marv's statement that one can do better. However, I differ (much as I love Marv!) in that I believe most people DON'T do better in negotiating inside the average dealership.

 

To me, the COSTCO/Sam's Club card is a big shield to use to purchase an auto. It feels a lot better to use this shield than one's chin.

 

That's my opinion, and I am sticking with it!

 

Edited December 21, 2005 by Pavlov

[moijea]

It just seems like it would be a hassle, going to them first, THEN to the dealer too, or am I confused about the process?

[Pavlov]

It just seems like it would be a hassle, going to them first, THEN to the dealer too, or am I confused about the process?

 

 

I don't know why you would go to COSTCO first, unless you want to purchase other goods. What I did was go to COSTCO.com, fill out the form, and within 12 hours I had a telephone call from the dealer. I had the contact person inside the dealership within 10 seconds of filling out the form. I don't think I ever showed my COSTCO card to anyone, and I don't recall typing it into the online form.

 

Very, very, tough to know how much I saved, because I walked in the door wearing a COSTCO shield. In order to really know the answer I would have to negotiate my best deal first, THEN say' COSTCO " discount.

 

My sense of the purpose of a COSTCO connection is to eliminate hassles. By saying COSTCO enough times, I make it clear to everyone that they are not going to make much money from this, so let's just get it done quick.

 

So on a $25,000 SUV, saved some $2000 over what most people probably would have paid on the same SUV. Just a guess, of course.

Edited December 21, 2005 by Pavlov

[MarvBear]

Actually IIRC they just refer you to the dealership who bought your zip code area for the Make you are interested in.

 

You call dealership up and request price quote, or they email us the contact information so we will contact you.

 

It is expensive on our end, I discontinued after about 3 months, simply not worth the return.

 

In all honesty there are several websites that do as good of a job like edumunds that can arm you with the appropriate information.

 

People's perception differ, if It makes you feel more comfortable, then it may very well suit you.

 

We found out that the same person would call us for a price quote and then call several other dealers for the same, since no body trusts anyone in the car business anyways.

 

I certainly would not pay a FEE to Costco JUST for this service.

[moijea]

Great insight Guys,

 

Thanks, I will be shopping with my newly college graduated daughter for a car before Dec. 31 (That is what you are supposed to do right? everyone is trying to clear inventory, right?)

 

She had been working a campus job for a couple years pre & post graduation, then got her dream job in a different field, working for the city government where she lives, making half again as much, and the CU reversed the approval due to "new job" and thin credit file. Geesh! She did everything right, went to school, graduated and PASSED a 4 month personal background investigation, and they say no for a $15,000 loan due!

 

So we are regrouping, she has a costco membership, I am just checking out all of the possibilities--

 

Marv, I know that AU history helps on other things, but is it beneficial for auto loans as well, as a way to fatten her credit file?

[MarvBear]

Yes it will help.

[TomKC]

Thanks, I will be shopping with my newly college graduated daughter for a car before Dec. 31 (That is what you are supposed to do right? everyone is trying to clear inventory, right?)

 

It depends, where I live we pay personal property taxes on whatever vehicles we own as of January 1 each year, so if one is in the market for a car this time of year, you can save money by waiting until right after the New Year. Not only does this delay when you will have to pay personal property taxes, but you never pay them on a "new car" (i.e., you would be buying a 2006 car, but you won't pay property taxes on it until it's one year old, in 2007).

 

Also, if you happen to be considering a hybrid, there will be a tax credit that goes into affect on January 1 that would likely provide a greater benefit than the current tax deduction, depending on exactly which hybrid vehicle you buy (see this site).

[hegemony]

when I was negotiating my honda purchase the sale person asked if I was a member of costco. I said yes and she offered, IIRC, $400 over invoice as the "COSTCO price." That made getting a lower price a lot easier.

[clueless alaskan]

Many people do not like to dicker over the price of things. Thus they usually end up paying more. The Costco program may be good for them. On the other hand if you are someone who likes to go head to head with the sales manager and dicker over each and every little thing, you can beat the Costco price.

[Pavlov]

Many people do not like to dicker over the price of things. Thus they usually end up paying more. The Costco program may be good for them. On the other hand if you are someone who likes to go head to head with the sales manager and dicker over each and every little thing, you can beat the Costco price.

 

 

Yes, but based on my experience with friends and family, most people are in the " don't like to dicker " category, don't you think? So that is why I like the COSTCO and Sam's Club leverage, because most people can use it effectively without knowing much about negotiations.

[moijea]

If you take the Costco price, do you forego any other incentives?

[Pavlov]

If you take the Costco price, do you forego any other incentives?

 

 

No, not if they are factory incentives. The dealer pays for the lead from COSTCO, and any factory discounts or incentives remain intact.

[MarvBear]

If you take the Costco price, do you forego any other incentives?

 

 

No!

[pplschamp]

when I was negotiating my honda purchase the sale person asked if I was a member of costco. I said yes and she offered, IIRC, $400 over invoice as the "COSTCO price." That made getting a lower price a lot easier.

 

What does IIRC mean? Thanks

[hegemony]

when I was negotiating my honda purchase the sale person asked if I was a member of costco. I said yes and she offered, IIRC, $400 over invoice as the "COSTCO price." That made getting a lower price a lot easier.

 

What does IIRC mean? Thanks

if I recall correctly.