ever try the costco auto program with a local dealer? experiences? (sales, credit) - Dallas - Texas (TX) - City-Data Forum

Eric Fred Norris · 08-21-2012, 09:26 PM

looking to buy a new prius or the fancypants lexus version, the c200h. basically, you go to the costco site, enter in your membership info and the make and model of car you want, then costco refers you to a local dealership they have pre-arranged pricing with. costco says its hassle and haggle free, you only deal with a costco-trained manager at the dealership, they give you a price sheet after a test drive and that's it.

seems obvious to me that the dealership can juice their profit with financing, trading, extras after the fact. i also doubt its as easy as costco says it is, but i'm easily suspicious. i dont know anyone who's tried it. thoughts?

Saintmarks · 08-21-2012, 10:22 PM

I am in auto sales locally, internet sales in fact. The Costco leads bypass our department and go to one of the two fleet directors. It is as easy as Costco says it is and is only difficult if you choose to make it difficult. If you think a dealership is fleecing you before you get there, then you will probably find something to back that up. Costco pricing has to be the lowest pricing program at a dealership or Costco can pull their program from a dealership. It is pretty simple.

You can go to Toyota's or Lexus' website to see what rates are available. Incentivized rates are usually reserved for those with good to excellent credit (don't blame the dealer if you don't qualify because of a poor credit history). If you want accessory items, go to the Toyota website and price them out. Be wary if only the price of the part itself is listed, they may not include labor fees, so a certain item might be a good bit more once labor charges are added. You can get a good idea of extended warranties and what they cost by online comparisons as well.

If you don't want any of these things, say no. If the car you choose already has some accessory equipment installed, you should ask for the Costco price for that particular item, but don't demand that it be taken off if it is already there. You might have to say no more than once, but you don't have to be suspicious or nervous or rude to any sales people or business managers.

From 8 years of selling cars, I go out of my way to show true professionalism to ALL customers, but I can say that I go the extra mile for customers who have the courtesy to be pleasant in return. The folks that think the only way to get a good deal is to make a scene or be a horse's rear... take it from someone on the other side... it doesn't pay off.

Luv2byte · 08-21-2012, 10:57 PM

Quote:

Originally Posted by Eric Fred Norris

looking to buy a new prius or the fancypants lexus version, the c200h. basically, you go to the costco site, enter in your membership info and the make and model of car you want, then costco refers you to a local dealership they have pre-arranged pricing with. costco says its hassle and haggle free, you only deal with a costco-trained manager at the dealership, they give you a price sheet after a test drive and that's it.

seems obvious to me that the dealership can juice their profit with financing, trading, extras after the fact. i also doubt its as easy as costco says it is, but i'm easily suspicious. i dont know anyone who's tried it. thoughts?

We did it on a used truck in Oregon, was easy & saved a bunch.

ggolf · 08-22-2012, 06:59 AM

Contact Jerry Reynolds at carproshow.com.

He's a former dealer who has a radio show on WBAP on Saturday morning. He has a Toyota dealer as part of his relationships.

And baba-booey to you all!

mikeh19468 · 08-22-2012, 04:24 PM

Did it in Pennsylvania, and it was very easy. The biggest hassle is if you have a particular make in mind, there's no guarantee that the closest dealer for that make won't be 25 miles away. Which isn't a big deal for purchasing, but then you might lose out on some of those nice perks that go with taking your car in for servicing at the dealer you purchased it at....

Debsi · 08-23-2012, 08:30 AM

It didn't work for me. I wanted a particular color and none of the three dealers had it.

JanND · 08-23-2012, 08:34 AM

Quote:

Originally Posted by Eric Fred Norris

looking to buy a new prius or the fancypants lexus version, the c200h. basically, you go to the costco site, enter in your membership info and the make and model of car you want, then costco refers you to a local dealership they have pre-arranged pricing with. costco says its hassle and haggle free, you only deal with a costco-trained manager at the dealership, they give you a price sheet after a test drive and that's it.

seems obvious to me that the dealership can juice their profit with financing, trading, extras after the fact. i also doubt its as easy as costco says it is, but i'm easily suspicious. i dont know anyone who's tried it. thoughts?

My sister bought her Honda that way.

tyanger · 08-23-2012, 11:54 AM

I used the Sam's Club auto program a while ago to buy an Audi A6. It went very quickly and smoothly. I might have been able to haggle for a slightly better deal on my own, but I didn't want to spend half the day at the dealership. The biggest appeal for me was the ease of the transaction more than the absolute price. It was a fair price but it took maybe 1 hour actually at the dealership to get it all done. I suspect the Costco program would be similar.

Saintmarks · 08-23-2012, 01:21 PM

Quote:

Originally Posted by tyanger

I used the Sam's Club auto program a while ago to buy an Audi A6. It went very quickly and smoothly. I might have been able to haggle for a slightly better deal on my own, but I didn't want to spend half the day at the dealership. The biggest appeal for me was the ease of the transaction more than the absolute price. It was a fair price but it took maybe 1 hour actually at the dealership to get it all done. I suspect the Costco program would be similar.

From someone in the business, you would be surprised how many people will come in on a true low cost price where all the back and forth is cut out and then use that number to negotiate anew. That is why it takes longer, people can't believe that it is a fair price where the dealer has cut the majority of their profit margin for a quick easy sale and the customer believes there is still more fat in the deal to go back and forth over.