DOES IT REALLY SAVE YOU MONEY? $$$ The Homework Guy Kevin Hunter Review of Costco Auto Program
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- Опубликовано: 3 апр 2020
- CAR PROGRAM AT COSTCO help high prices? Does #COSTCO Auto actually save Car Buyers money with their Auto Buying Program? "10 Shopping Secrets Costco Doesn't Want You To Know!"
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Chapters in this video
0:00 Kevin Hunter presents Costco Auto program is it worth it for car buyers 2021
00:50 Costco Auto Program
02:09 Costco Dealers
02:24 What is Covered
02:48 Call Directly with Costco Representative
03:39 The Costco Member Experience
04:09 How Dealers Set Car Prices
05:09 How to become a Participating Costco Dealer
05:51 Costco’s No Haggle Model
06:05 Does Costco help Car Buyers with Finance Advice?
06:57 Consumers still must do Due Diligence on their own
08:02 How Costco matches you up with a Dealer
08:35 What Training does a Costco Approved Car Salesman get?
09:36 How can a Costco Member file a Dealer Complaint?
09:56 Review of Costco Auto Program
10:29 Are Costco Car Prices any better than what you can negotiate on your own?
11:09 Dealers choose what cars they want in the Costco Auto Program
11:51 Summary of Costco Auto Program
12:21 Costco Auto Disclaimer
I went to a dealership that was listed under the Costco program, but had lost their participation in Costco program because of bad practices. The website for Costco was out of date. How I found out was via differences in the invoices for same model same options different colors of the car. I walked away. I called Costco Auto Program and was satisfied that the dealership was removed. You can get a car or truck cheaper than the fixed price from Costco. Remember never tell dealership that you are paying cash until the very end of the deal and the final price is in writing. Also never sign or agree to anything without reading. If you are tired schedule to return the next day do not be pressured into a purchase.
The price experience was exactly what they said it would be, but the process still took forever. My car was buried behind a bunch of other cars they had to move, the finance guy wasn't there, a few upsell attempts, etc. It took about 4 hours. I still saved about $4000 on my car (Costco + Rebates + a "loyalty" discount).
Agreed on your analysis. Thank you, Kevin Hunter. I worked with a Costco Auto Program dealer in NJ and it did not work out well. They said I could not negotiate any dealer options if I accepted their discounted car price. After I said I didn't want to buy that day, they ignored me. They mandated their accessories package and were not interested in dealing with me when I wanted to negotiate. I did not see an itemized Costco car charge on the price sheet. They had a $699 doc fee on my cost sheet in addition to a Vin etching fee and $1600 in a non-negotiable "protection package." Didn't enjoy it because I don't think the sales rep was a moral person.
Do you have the choice not to get the $1600 protection package?
I spent a ton of time researching a specific Make and Model, brand new vehicle. I shopped all the dealers in my area independently. I took detailed notes and got offers from 5 dealers. Then I used the Costco program to shop the same Make and Model. The Costco program “says” it will “ensure” you are given all Manufacturer incentives available. I found this to be untrue with the “Costco price” as compared to my previously obtained, independent quotes. I contacted the manufacturer to make sure I had the correct list of all incentives available to me and what the qualification criteria was. Long story short - the dealers price lower overall with all the incentives, the costco “price” was lower before incentives but the dealer told me I couldn’t mix the two. I filed a complaint with the Costco program. The Costco complaint department basically said that the dealers ultimately determine which incentives are available in any given scenario and have the final word. I was so disgusted with both this dealer and the Costco program I took my business elsewhere.
I used the Costco car buying service 7 years back and was very satisfied with the price and the process. The only problem I had was that the sales rep came back twice with a higher price and I had to get him back to the original agreed upon price. I got what I wanted at a fair price and I got 0% interest with no added warranties or extras. My car is still running like a champ!!
I have been avoiding buying a new truck because I hate dealing with dealer sales people. I started watching your videos a few days ago. Thank you for all the extremely useful information. I think I will end up using the Costco program. Your videos are awesome. I wish you lots of success.
I have used Costco Auto Buying Program (CABP) several times, even when a neighbor was one of the largest dealers in the area. While the price is normally good you have to be alert when in Finance. Many will still try to add in all their 🐂💩fees. Don’t be afraid to challenge them on these fees. Also, be aware if you decide to trade-in your old vehicle. Know the trade-in value of your vehicle or be prepared to sell it yourself. These are all areas you can be taken to the cleaners if you don’t pay attention. But if you’ve watched Kevin’s videos and taken notes you should come out fine using the CABP.
My experiences (twice with Costco) exactly. Great summary.
I have used Costco twice for auto buying. First time was for new 2012 Subaru WRX STI. Went to dealer after initial contact online through Costco Auto Buying website. The price was dealer invoice and any added options were also invoice cost. The dealer did not have the color nor options I wanted and I was able to order the car as I wanted after putting a fully refundable deposit. I used Subaru website trade in value on my previous car which is very fair value. I paid the difference in cash so not financing involved. I refused all other things finance was pushing and was out of the finance office in 20 minutes. I thought it was fair and stress free. Sure, I could have shopped around and might have saved more but this model was at the time in some demand so was happy in the end. Costco did follow up about the shopping experience. I must say the dealer was very cordial in the deal.
I'm about ready to use the Costco program for my next vehicle purchase. It's tailor-made for someone like me, who does not have the stomach for protracted high-pressure negotiation. So I really appreciate knowing the bits about how finance and accessories are a whole other kettle of fish.
Great info Thank you! I'm currently looking into using this program. I decided to ask my sister about her experience since she and her husband used the Costco program to purchase TWO cars. On the 2nd purchase with the same dealer, they tacked on $3,000 for extras she didn't want. She was not happy. The experience became a nightmare and she became a thorn in their side and went back 3 times until they made it right and took out the extra $3k they charged.
Bait and switch program. We went to 3 dealerships, updating paper work with Costco each time. Soon as settling in on suv, they switch you from Costco program to their hard sell routine. Best deal we got came from haggling price to price willing to pay. Some good honest dealers will negotiate, walk out on the crapheads that only want to discount 1% and get you off Costco pricing. You get better negotiating, winning is so sweet.
Having worked in the car biz for 11 years, 8 as sales manager, I appreciate your straight-forward approach in your videos. Excellent training and the straight scoop about what goes on.
Thanks for stopping by, Ed! It's always great to hear from people in the car business, especially the good guys!
I got 2 brand new Toyota vehicles through the Costco program. They were $1,600 under invoice and I felt like I got a great deal. I confirmed this by taking the offer to other Toyota dealers in my area. I was effectively laughed out of other showrooms which confirmed that I was getting the very best price.
"invoice" (emphasis needed)
Under invoice?? Are you sure??
@@williamzhang963 They showed me the actual invoice. But of course, it did not show any factory to dealer incentives which is how I figure they are able to offer the vehicles below the invoice price.
@@harold-miller Maybe this was 3 years ago when cars weren't selling during the pandemic?
@@williamzhang963 Yea, defintely pre-pandemic. I do believe that the Costco program still has a lot to offer. I do believe that the days of under invoice sales will be back, though.
Excellent Video Kevin! The information you provide is valuable and appreciated, Thank you!
I usually find that the model vehicle I want to buy is not included in Costco's program because it is popular and the dealer has zero problem selling them. For example back in 2016 we purchased a Rav4 Hybrid that was and still is, very popular. We were fully aware that put us at a huge disadvantage for negotiation. It took a while(a lot of phone calls) but it worked out for us. If the vehicle had been on Costco's list that price would have been my starting point on negotiation.
I have purchased four vehicles with the Costco program. Only once have I paid the Costco price. The other three times I was able to shave a couple hundred off of the price, getting the vehicle down to just above, or just below, the true invoice. I think it is very important to know both the invoice price of the vehicle/model you are shopping, as well as the invoice price of the common options on that vehicle. I usually walk in with a notebook and my iPhone fully charged. I have also found it better to do car shopping in the last month of the quarter, and the end of that month. The Labor Day holiday sales are also opportune. It helps take some of the initiative and advantage off of the Dealer's side. Even so, I always assume the Dealer is "holding all of the cards" when I walk in the door. Good video, Kevin.
I thought the call rep did very well. I was actually surprised and impressed with him.
The rep had no idea we were calling, and had no idea he might be featured on RUclips. If you noticed, we pinned a comment that was actually from Costco asking us to redo the video entirely and include more of their own viewpoints. We declined.
bought my past two vehicles through costco (both new). I knew exactly what I wanted and the latest vehicle actually ended up being a factory order. Very happy with the process; I'm sure my next vehicle will be through Costco as well.
It was more expensive going through Costco, than doing it myself.
Same here . I saved a $1000 by avoiding Costco
@@mariaavakian4910 No, you spent 1000 dollars worth of your time. You saved nothing. Everything is an expense of a resource. You simply trade one for another.
I was in the market for a new car. I found a car I liked and went to the dealer to workout the deal. I was having a difficult time getting my payment to my satisfaction when the sales man asked if I was a Costco member? I replied yes. He came back with a lower number than I was asking by going through the Costco program. In addition to that, I was also given a $700 gift card to shop at Costco. In my experience, I had no problem and would definitely use the program as well.
I learned a lot from your broadcast and subscribed to your channel. I also passed your link off to people I like, members of Cosco, for their benefit. Excellent presentation by the way. Very clear cut, professional and straight to the point. Looking forward to other broadcasts and will try the three ways to price cars but will probably go the Costco route. Thanks again.
I work at a small used car dealership and I have been using your videos to help improve myself at work. The owner only accepts cash as payment. We advertise a vehicle at the exact price the customer will pay us other than required fees like title transfer and taxes.
Thank you Kevin. I really appreciate All your videos. ALL of your videos are Extremely informative and eye opening. You give consumers a level playing field by teaching us the pitfalls of negotiating a car deal.
I've used it for my last two vehicles, and have been very satisfied. I did know exactly what I wanted both times, and I also understand it's beneficial to both the buyer and obviously, the dealer. It just eliminates the haggling, other than the trade in value. I like it.
I bought my Honda through the Costco program in 2013, and still have the car. It isn't an expensive car, and given that I've had it for seven years now if I could have saved a bit with negotiating skills it would probably not be so much on a per-year basis. The next car I bought was a Ford in 2017, but I used a different buyer program. Same theory, I intend to keep it for a number of years and I know I got pretty close to the typical price based on the online tools. Obviously my car-buying skills are not particularly well-honed since I buy a car only once every few years, so to me the services are good enough.
The worst part of buying a car is going in to the office with the closer, if that's what they call them. That's the guy who arranges financing and so forth, so forgive my choice of term since I don't deal with car buying much. I learned a long time ago that extended warranties rarely end in the buyer's favor, but I think for some cars (like a twin-turbo Ford) it probably makes sense to get one for peace of mind if nothing else. But Hondas are known for reliability. You would not have known that from the closer. To listen to him try to sell me an extended warranty you would have thought I was buying a Yugo. I did not buy the extended warranty for the Honda, made a big down payment, and kept the loan as short as I could. Seven years later and almost no repair bills, I'm sure I did not need the extended warranty. As to the Ford - so far I haven't needed it, but it's still pretty young.
I'll be sure to check out more of these videos the next time I need to buy a car - maybe next year or maybe not.
Just wanted to follow up on this after going through the Costco program. I tried a handful of dealers, and found one to give me $5k off MSRP for a new 4Runner. Went through the Costco program and got $7k off MSRP without having to any negotiating. I am not shy to negotiating at all, but I couldn't find another dealer to even match it after showing them the quote.
Another great video - you guys rock. I've used the Costco program a few times and been very happy with it. Other than one case I went in with financing from a credit union - even before I'd seen those videos. The only time I did use manufacturer financing it was $0 down and 0% per month for 5 years. I know they made money somewhere, but I was very happy with that deal. Thanks for arming me even more Kevin!!
As soon as I ask you about COTSCO’s deal on buying a car through them I saw and reading
Your responses about it I’m sending my THANKS with the entire explanation. 🙏🙏
My own experience with the Costco program wasn't a very good one, but that was many years ago and I'm not sure it's fair to assume that the program still runs the same way. I got intercepted by another salesman on the way in to the dealership, and he basically refused to let me talk to the Costco guy. Being younger and much more stupid, I didn't insist on seeing the Costco guy only, and this jerk started playing the silly game of writing numbers on a piece of paper and sliding it across the table to me as if we were trading Cold War secrets at the Brandenburg Gate. Thanks to help from people like you, that won't happen to me again! Since then, I bought a Genesis thru the USAA Auto Program and it went pretty flawlessly. Thanks again for your amazing videos.
HA, HA, the cold war secrets Brandenberg Gate!
The best. We just bought a Chevy Traverse here in Tempe and I will never buy a car without Costco. Thank you!!! Saved thousands off the list price. The other dealers played games. We knew the discount as soon as we sat down.
I went to Costco to buy a car. I went up and down every aisle to find where they hide the cars. I found a few Barbie cars but not a full size car. I even looked at the top of the shelves and nope, no cars. This is ridiculous! As an old lady I can't walk around the damn store all day long! I won't have anything to do with Costco ever again. Why bother????
Did you check the parking lot? There's lots of cars out there and the variety changes constantly. And as a bonus, many of the cars come with a bonus load of groceries in the trunk!
@@JM-xu3cr lol
I forgot that Costco have a car programa, I will buying a New car in couple months and I am very happy that I found you in the internet and talked about Costco's car program. This is a very help. Thank you the information.
Great info as always, thanks!
“Most dealers actually suck at training their staff!” Sad but so so true… I can’t count the number of times I’ve been at a dealership and basically giving lessons to some newbie salesman with minimal vehicle knowledge!
i used costco auto program for my car but i used them as a way of negotiating my price even lower because costco tells me the price for the car, i then go online and see what others paid for that car. I then take out a loan from my credit union for the amount i'm willing to pay after all the fees etc. ( no extra accessories or extended warranties etc) I then emailed all the companies that contacted me through costco and tell the dealerships the final price i'm willing to pay until one agreed on the price and car i wanted. i ended up saving approximately $3000-4000 by using costco and negotiating my price. The internet is your best friend and can save you alot of money. Thanks Kevin your site is helping alot of people.
New Yorks Finest great strategy! When I purchased my last new vehicle (2013 Ford Escape) I used CarsDirect) and although I was satisfied by the discount I received, the person I dealt with at the dealership asked me to come to him directly on my next purchase suggesting there was money left on the table.
I’m going to be in the market for a new car soon and will definitely be using your strategy!
Thanks!
I think you were very good with Scott on the phone as he probably took a huge risk agreeing to let you record at your end - unless that is common. He gave really good answers under important conditions and you summarized what he said very well, filling in and tightening up what he said. A very good job over-all. I also appreciated how you showed your skill and knowledge by being kind and respectful and not shaming as often people can do. Skill and knowledge don't need puffing - and you just show both in what you do.
We used information primarily from Truecar for each of the last three vehicle purchases we made. Each time we did better than we would have using the Costco program. There are too many restrictions with the program. Whichever program one uses, however, the key is to go into the dealership with his/her own financing. One should know exactly what the monthly payment, if any, is going to be before setting foot into the dealership.
I tried 3 times to buy with Costco and every time I got better deals on my own.
I agree but I know people who would get screwed at a dealer works for some people never used them
@@cooperparts - but these people still end up in finance dept. and get ripped there
I used this service to buy a new Mazda CX-5 in2018 and the process was pretty painless. I'm probably more trusting of Costco than many, but they haven't let me down yet.
I loved not having to negotiate the price and I got the car just like I wanted it. I recommend the service.
I love your very helpful videos. I just wanted to point out that when cleaning glass, it shouldn't be done in full sunlight or heat. Thanks for your very professionally done video tutorials. You are articulate and make your points perfectly.
Dec. 2016 I leased a Chevy Cruze LT w/ driver convenience package, through Costco buying service. Two thousand down, 24 months $ 92 a month INCLUDING TAX & reg, PLUS I got a $ 700 Costco gift card, from Costco.
"Most dealers suck at training" That the biggest understatement of the year. Given that this is 2020 that really means something.
"No haggle"? No thanks! I'd never buy a car I couldn't negotiate for.
This video is one of the best I've ever seen on this topic. Probably is the best I've ever seen on this topic. I read Consumer Reports sometimes but they won't give you a straight answer on this topic because they have their own auto buying program.
Good info! Thanks for reviewing Costco's dealership program
I completely agree. If you’re good at negotiating, you may be able to do better on your own. If, like me, you’re terrible at negotiating, this is a hedge against getting screwed. And also agree, watch yourself in the finance department. So many bad things happen there. I prearranged my loan through my bank. So I saved myself there. Good video!
I used the USAA car buying program once and always wondered why the salesman part of the process was smooth and painless (basically he said, "You know what you want and I'm not here to waste your time.") but the financing guy was still trying to waste my time by feeding me a bunch of bullshit like claiming detailing and other dealer services were mandatory charges along with extended warranty and GAP up-sales. He already had them in the contract! I told him to remove them or I was going to walk. He didn't like it, but he did it. I now realize that he wasn't part of the easy car buying process like the start of the sale was. Thanks Kevin!
Another great video. Thank you.
So I’m looking to finance through my credit union, I didn’t realize that my credit union also offers GAP insurance at $395 (for the length of the loan, in this instance 36 months). They also offered me an extended warranty 6 years or 100,000miles including electronic parts for around $880 (I forget the exact numbers, but it’s close enough)! So good to know this before I go to negotiate a deal at the dealer. Wish me luck🤞🏻😬
Great info you are educating me on my next car purchase thank you.
I tried it in the Spokane area. They must have selected the sleaziest salesmen possible. They called me constantly and when I told them exactly what I wanted. They kept sending me vehicle I didn't want and would not give me a price unless I went into the dealership. I walked into the dealership on a weekday with a appointment. After waiting for 20 minutes I walked out.
You are awesome. Thank you for you information it really saves thousands.
I tried to play off several Toyota dealers against each other via email and the best I could do was a 5% discount off the MSRP. I gave up and went with Costco and got a 10.5% discount. I won't waste my time anymore trying to make my own deal. I got the authorized dealer and the names of their COSTCO sales people from COSTCO's website. I called one of the sales people and worked with him and couldn't be happier with the outcome. When I went down to the dealer the car was ready to go. All I had to do was sign and initial lots of papers, write a check and drive away with my new car.
I tried to deal with the dealer. Salesman asked me, what price I wanted to pay. He laughed at me and walked away.
Then I went home, got the costco printout, came back to the dealer, saw the same salesman, and he said "you're back", and I said yeah, but I'm not buying from you, I'm buying through the costco program. I don't know why he wouldn't take me seriously before, but having the costco price worked like a charm.
In addition to the pre-arranged price, essentially some amount under dealers invoice and on popular models the “price” can be invoice plus $.
The one additional thing they do if you have purchased a car is Costco is they send a satisfaction survey and those results I have been told are used in decisions on who they keep in their network.
You are absolutely correct that if you have done your homework, and pre-arranged your financing you can get a better price than via Costco price and being pre-approved for financing means the F&I person has to meet or beat the terms you will get if you stay with your lender.
As with any program such as the Costco program, you must remember Caveat Emptor.
The last time I bought a car & went through this program, the dealer said that they can give me a much better deal & they did. All because it was a quarter ending and they wanted to meet their targets.. so, it was a win win situation for me.
Kevin, that’s a great video. I just subscribed. Thanks.
I bought a Subaru Crosstrek through Costco. I’m in my 60’s so I am very experienced in buying cars and know my stuff. I thoroughly researched my car so I know I got a good deal. Not only got a good price but it was so easy. No haggling and boy was it fast. I was in and out of the dealership in record time. I’ll use them again.
If you didn't haggle you didn't get the best price. Recently used Costco for a price on a Honda. The dealership was 2 hours away so I took the printed price to a local dealer and they immediately beat it. Costco is a starting point don't be fooled.
@@14drback This is exactly true. They hope that people get blinded by the fact that costco is a great place for buying every other thing so they could trick you out of a lot of money. I was able to find a new car 5% less than the costco price at another dealership. All while the costco dealership kept pressuring me by telling me I wasn't going to find anywhere cheaper. Fuck car dealers.
Great channel. Liked and subbed. Thank you!
Hey Kevin, I'm considering a used car purchase and have watched several of your videos so far. You give fantastic advice! I'm gonna watch each of your videos before I start shopping. Thank you. Thumbs up and subscribed! Bill
I’m a Mazda salesman and we use Costco program at my dealership. It’s great for the customer, around $750 below invoice currently. The lowest I’d go before letting someone walk away is ~$1,000 under so Costco is a very good deal and you get it for exactly 0 effort.
I’m sure this isn’t true everywhere but for me it’s a win win.
Not looking for a new vehicle anytime soon but just wanted to say this was an excellent video especially for those that don't like haggling.
Many transactions also involve a trade-in which gives the dealer another profit avenue and non-hagglers may be easy marks.
Bought two cars through Costco. Great customer support from Costco when a dealer was slow with responding. In addition pre negotiated price beat true car. You nailed it however, as both times the dealer finance department worked extra hard to make up for lost profits. Costco definitely made it a whole lot easier, however.
And yes, I'm an educated car buyer. I watch Kevin's channel, have read "Don't Get Taken Every Time" and other books on the subject. Kevin is correct - if you enjoy and are good at haggling, you'll do better than Costco's price, but who enjoys that?
What's not to like about making a car seller suffer?
Hmmm I enjoy saving money.
Every time I go to the Costco program dealership it was usually far away from my NYC home.
I am not a negotiator nor do I enjoy negotiating a deal for a car in fact I detest working with a dealership.
But my experience when I do car shopping I always find that I always get a better price than Costco without even trying.
Every time I try Costco dealership the Costco contact at dealership is sometimes NEVER there and when I do get the correct sales person they always never beat the other dealership prices.
Costco informs me when I complain about the long distance to Costco dealership and never giving me a discount Costco response to my concern is
“That’s great that I received a better deal than Costco can get for me “
Can you imagine Costco never addressing the long travel to get a price that I could beat without trying closer to my home without Costco help?
Good video. I'm in the slow process of buying a 1-2 year old car as my son is getting his license and im probably getting a truck. When I accessed the Costco website a while back, they wanted my contact info, so I put it in, then got a couple calls from dealerships. That's not what I wanted, I thought I could just browse cars through the website, but that's not how it works. This video was good as I wasn't ready to buy and wasn't sure of what I was buying. That's great info/advice.
I bought a brand new Toyota Sienna in 2015 through the program in California. Sticker before tax was about 37k. Costco price was 34,870 and I got a 1k cash back rebate from Toyota. With taxes I got the Sienna for $37,419.
Thank you. Loved this, very informative.
I bought a 2021 Subaru Ascent Touring. I went to the dealership expecting to pay about 10 - 12% below MSRP. Went with the Costco deal and got it for 14% below. Plus 0% apr for 63 mo. made for a pretty good deal.
Very well done Mr hunter! The details on the Costco program was very well presented and very easy to understand. Thank you for showing me the ins and outs of the program which is run by a third party and the dealership end of it
I purchased a new car under the program. The dealer assured me there was no hidden extended warranty in the contract. When I got home and reviewed the contract , without any sales pressure , I discovered the finance manager folded the 20 inch long contract where it stated a 1500.00 extended warranty. I immediately returned and threatened to revoke ownership. They recast the contract without the extended warranty. Upon complaining to Costco it appeared that they were not really good at complaints. I was supposed to be contacted by the dealership. That never happened and still Costco did nothing but to act surprised. Worst experience I ever had buying a car. Lesson learned ? Never go alone to a dealership because overwhelming the customer with information is a major part of their business model.
I have used the Costco program 3 times. 2 of the 3 times , the sales reps got me a better deal not using the costco program. In all 3 purchases, the costco sales reps were respectful and very easy to work with.
Gonna browse their site right now! Thanks!
Glad you added a video on COSTCO. I wonder if, with the help of COSTCO and USAA, I could in the end negotiate my best price, OR buy a Tesla and bypass the nonsense. PS: Watch for the typo at the end of your video.
I bought a Toyota Prius in 2010 through the program and I saved about $1,500 after spending about 20 minutes on the phone with Costco. It was definitely worth the effort for me!!!
Kevin, very informative video. Having been a Costco member for over 20 years, I was unaware of their car buying service. I tried using the USAA service last year and was immediately inundated with phone calls, texts, and e-mail from several local dealers wanting my business. When I went on USAA's site, I was actually trying to see what kind of deal I could expect BEFORE having to sit down with a sales person. Needless to say, I am still looking...
I knew exactly what I wanted when I used the Costco Auto Program back in 2017, and I pretty much got it save for the color. My Accord EX-L V-6/6MT coupe is great, and there aren't too many of them around. Just the way I like it.
That is a nice car.Congrats.
@@PowerandLuxury Thank you!
Costco brings thousands & thousands of car buyers to the table and that’s their clout for the negotiated lower price. Volume. I’m not against dealerships making a profit. I’m against being ripped off!
Essentially, the lazy buyer (which most interestingly are) will likely do a little better than they would have if they had gone out on their own. However, that's only on the price of the car. A buyer who feels "relaxed" because they are following the Costco process will get totally burned with everything to follow. That laziness will cost them big time in accessories and finance. In the end, they could easily pay more than if they had gone anywhere else and been watchful through the whole process.
@@KevinHunter Synopsis of your video; your killing them off Kevin, TYVM.
@@KevinHunter Your video was neutral and well made but I have to disagree with your comment. The accessories and financing have nothing to do with costco. You are correct dealers have higher mark ups on accessories but that's the nature of the beast. Financing is the same deal. No matter where you buy (with or without Costco) you still need to get your own financing or simply use the manufacturer banks (especially if they make incentives available only for financing with them). Costco is great for majority of buyers who do not want to go through the hell of haggling with dealerships (who are some of the worst people of society, in my opinion). And all of this is coming from someone who is good at researching and negotiating prices, which means I'll never use Costco personally.
@@KevinHunter How does the use of a car buying service such as that offered by Costco compare to buying from a "everyone pays the same price" dealer. In my area, one dealer has this policy and all of the competition simply matches that price. It seems they wouldn't do this if they were not making a substantial profit. So, does the customer lose?
@@KevinHunter Lazy? Really?
Sold cars for a while and almost all the sales people hated the Costco program. I liked it as I didn't have to do anything but get them to sign the paperwork.
An awesome video, thank you ! Cheers .
When I bought my Yukon XL The dealer flat out said the costco price (which seemed high) then told me he could beat that price. I negotiated what I thought was a fair price but I did drive away and they called me and offered my price over the phone. I am sure they made money but I was happy with it.
Awesome Kevin I did not know about this... Thank you.
Kevin, you rock! Thank you for your videos.
The question is: why are only certain vehicles included? Why not all vehicles?
thanks for the opinion.
Another awesome video, been doing my homework and wondering if now is the best to make a new truck purchase or see if the deals get even better next month?
I once tried it. They sent me to Honda dealer. Dealer said HRV was not eligible. Then offered $1500 off $25k Civic. But, they then offered $2k Under Wholesale for trade. I left. Told Costco what good is discount on new car when the dealer tries to scalp you on trade? Not Costco's fault. Just listen to Kevin about dealers.
I got $750 off the top of the price of my vehicle when I bought through USAA. I configured and ordered it through them and just used the dealer to sign paperwork and pick up the car when it came from the factory.
Top price being the lowest or highest price you could find?
USAA is client owned, that might help.
I buy used cars and take good care of them. My recent purchase was a 2005 Mercury Grand Marquis. I have a 1997 Buick Park Avenue with 240,000 miles. I had a 1990 Chevy Lumina and when I sold it the car had 350,000 miles. Do some research. RUclips has a number of good sites for what to do when purchasing a car. I like the suggestions that are on Scotty Kilmer.
I looked into this program And my wife and I did better using Kevin’s advice and we saved 3,000 over what Costco offered.
I'm not even looking for a car right now (haha) but I am VERY impressed with your content and information. I'll be armed and ready for our next purchase. New subscriber!! Thanks a lot.
They also offer lease promos. One just came out for Volvo in May. Good at any Volvo dealer, $1,250 off suv's and $2,000 off wagons. Used the promo at a local dealer to pick up a new lease. For a $60 membership, got a $1,250 promo off a lease. Will take take every time. Didn't use them for the process, just the instant non-taxable incentive.
Good information. Since most buyers have a trade, they must be very careful of the value given by the dealer under this program. The other issue is every dealer is either ordering vehicles with lots of high cost, low value add-ons and/or packing the vehicles with dealer add-ons. It is very difficult to just buy a vehicle without all the extras that can cost thousands.
I agree with the individual who said Oct. is a good time to purchase. Anytime from Oct - Dec. 31. One has to remember that the moment a vehicle is driven off the lot it has already depreciated. So, why would one want to pay the same price for a vehicle in December as compared to January of the same year? It all comes down to having one's ducks in a row knowing the type of vehicle/specific packages, along with financing opportunities. Financing will depend on the auto manufacturer. Remember the days when "0" percent financing did not exist? That is because the manufacturers did NOT have to offer it. Times have indeed changed. Being able to purchase with the best financing will be indicative of one's credit score. So, I would urge all future purchasers to know what their credit score is and how to possibly improve it so that in the near future they would be able to obtain the best financing available. Also, for those cash buyers out there, the dealer is more interested in having one finance a vehicle rather than paying cash. For me it is MOSTLY about the deal and not necessarily the auto. Currently I am searching out 3 vehicles all from 3 different manufacturers. The one with the BEST deal will get my business. Good luck to everyone!
All depends when you buy. In December, I used Costco auto and bought a 2020 Blazer for 150.00 above GM employees pricing and received a 700.00 gift card to Costco. It all depends on the time of the year. They treated me right. As you asked, you do want to do your home work because, many dealerships are still trying to make the most money but, there are some honest dealerships. I stay with those dealerships. Always have financing set up because, the dealer is going to try to beat it.
Thanks for the tip.
great video and it mirrors my experience. At most dealers I would save money using the Costco program, but I found a dealer who wanted to get my car off his lot and so I got a fantastic deal.
At least that's what he told you
Very good video. (Another one.) Thank you.
Wow wow wow thank you so much this tips are very good thanks you so much 🙏🙏👍👍
My experience 26 month after this video was made: In my metro area of 2+ million with five or six Toyota dealerships, there were zero dealerships participating for a Toyota RAV4. I expanded my search to include dealerships 100 miles out and found one that promised $500 below sticker but when I got to see the details the car had $3K in "junk options" (ceramic, seat protection, undercoat, VIN etching, etc.) that couldn't be declined.
I love Costco, but I had better luck going through Consumer Reports Car Buying Service - a dealership in my city offering no discount from sticker but only $500 in junk options.
There really isn't a car buying service out there who can claim to get a big discount for the buyer.
I bought an Infiniti through Costco and it was a good experience. I would consider it again if I decide to buy a brand new car again.
Learned so much thank you.
I used the Costco auto program about 6 years ago. Car was a Honda Fit, half cash, half financing. I got into an accident a year later and had to total the car. I didn't take a loss at all, so I figured the price Costco got me must have been decent.
Thanks.
I've used Costco car buying before. It used to be easier, I thought getting the price from AAA or Consumer Reports was easier. They print out the cost of the model you want, you take it to the dealer, and say give me this price. That's it.