Costco Auto Buying Program (sales, how much, prices)

[Workin_Hard]

Has anyone used the Costco program to buy a new car? I read the online description and signed up indicating interest in a new Lexus hybrid. I visitied the dealer yesterday to take a look at the vehicle which my wife wants but I had not really seen up close yet. (FWIW, yes, I was very impressed! Imagine, a car with a mouse interface!) The salesperson was great in showing me all the features but asked that my wife and I come in for an appointment before getting out the members-only price sheet.

So my questions are:

1) Has anyone had experiences they can share, either good or bad?
2) What percentage (or raw amount) did you save?
3) Is this a better deal than negotiating myself?
4) Were you pleased with the process and customer service involved?

[kevinm]

This is similar to purchasing from CarMax meaning there is NO NEGOTIATING. They will give you a little off, but you can save more by negotiating your own deal. These programs are designed for people who are "bent over" by car dealers.

[Ashburnite]

I looked into it a while back and was sent a list of dealers who participate in offering the pre-set Costco price. It's fairly similar to the online-only pricing in the sense that you agree to a specific price and when you go to pick up the car they aren't supposed to hassle you with pricing, you pay what was agreed upon.

The Costco price is supposed to be a reasonably good deal based on what the demand is for the car you're buying. Some people may be able to negotiate a lower price but the Costco price is supposed to be pretty close to the amount that is listed as being a reasonable price by Kelley Blue Book, Edmunds, or the Consumer Reports car pricing info. Check those websites to see what the dealer paid for the car, the options, and other items, what the reasonable markup should be for the dealer to make at least some profit, and determine what you think is fair. Shoot for doing that or play hardball at the dealership.

We also bought a car "online" through a Honda dealership and it was an easy, no-haggle experience where we feel we got a good price. The advantage of not being hassled at the dealership is worth something, too! The Honda guy told us that he doesn't get a commission so it doesn't matter how much he upcharges because he gets paid by volume (something like that).

[Workin_Hard]

Follow-up: We went to the dealer today and saw the Costco price sheet. For Lexus, it takes $1,000 off the bottom line price. (We're figuring a little over $50K as a final cost, so while I would never turn down any kind of price break, frankly I was expecting a little more.) We're now considering our next move. (The missus really does like that Lexus though...) Me? I still like my Chevy, but I don't think she'll agree on a new SS Camaro instead!

[Bigfoot424]

You're breaking my heart about the cost of the Lexus. $50K Get real.

[Workin_Hard]

Get real about what?

Take a look. Lexus All Models

[ted08721]

I went thru Costco back in 03 when I bought my SUV, it was a good experience.

[curiouserest]

Reviving this topic - does anyone have any recent experiences to share?

[Rabrrita]

Costco's auto program is a no hassle, no haggle program. They negotiate a price based on reasonable savings and that’s what the dealer agrees to sell the vehicle for. No haggling over pricing and no hassles since the sales price is already set.

It is NOT designed to get you a very low price or even the best price, just a reasonable savings with no haggling or hassles! Basically, it's for those who don’t want to deal with pricing and sales people at the dealership, even though you may be paying more than if you just walked in off the street. You can save much much more doing your own research and throwing out a reasonable very low price to their internet sales dept. and see if they accept. I have always been able to purchase a vehicle for less than the Costco pricing by doing it online with the dealer's internet sales staff.

Not all dealerships participate in the Costco program, so you are limiting your selection. Costco also doesn't have 'special order' unles the dealer is willing to do it under Costco's price. Dealer's internet sales dept's can do special orders or even dealer swaps, you just have to know what you want, what your willing to pay and be willing to get a No from them on your offer.

As an example, I purchased a vehicle that Costco's pricing shows a good discount off MSRP, but I was still able to negotiate on my own at another dealer for well over $3,000 below Costco's price.

[venture2000]

Don't bother with Costco. I don't bother with negotiations either. Internet deals are where you save money.

(1) Find the vehicle you want, with the options you want.
(2) Figure out what the invoice price is.
(3) Then start searching the Internet looking for Internet sale prices (at dealerships around the area and the country) for the car you want.
(4) Once you find the Internet Sales Price you want- travel to the dealership with that price and purchase your vehicle.

I have bought my last three cars this way. No haggling. If you don't like a dealership's Internet price move on to the next dealership and check their Internet price.