Anyone use Costco Auto Buying Program?

So-how is the "special price" arrived at?

The dealership sets the price, I am failing to understand why you cannot understand that a dealership can set fixed pricing as they see fit and that Costco has absolutely nothing to do with the pricing that a dealership sets.

My last dealership employer set fixed pricing for online quotes, if the fixed pricing they set for one specific vehicle was $30,000 for an online quote was also $30,000 for a Costco referral please tell me exactly what Costco would have to say or what they could do about that? What would be the issue in your mind?
 
The dealership sets the price, I am failing to understand why you cannot understand that a dealership can set fixed pricing as they see fit and that Costco has absolutely nothing to do with the pricing that a dealership sets.

My last dealership employer set fixed pricing for online quotes, if the fixed pricing they set for one specific vehicle was $30,000 for an online quote was also $30,000 for a Costco referral please tell me exactly what Costco would have to say or what they could do about that? What would be the issue in your mind?
I understand Costco does not set the price; pricing is the the dealership's decision.
But I don't believe there is a single Internet price that includes Costco. Perhaps your dealership worked that way.

My understanding is, if a dealership is recommended bt Costco, there is a certain way of doing things, and the customer satisfaction needs to be high. That's part of the dealer benefit for being part of the Costco buying program. Plus there is a fee to participate.
I also understand that many dealerships do not want to be part of the Costco program because they do not want to sell vheicles at the amount of discounting Costco requires.

I believe the pros to the Costco Auto Buying program are time savings, no haggling and a good price.
The main con is, there may be better pricing out there.

Good luck.
 
I understand Costco does not set the price; pricing is the the dealership's decision.
But I don't believe there is a single Internet price that includes Costco. Perhaps your dealership worked that way.

My understanding is, if a dealership is recommended bt Costco, there is a certain way of doing things, and the customer satisfaction needs to be high. That's part of the dealer benefit for being part of the Costco buying program. Plus there is a fee to participate.
I also understand that many dealerships do not want to be part of the Costco program because they do not want to sell vheicles at the amount of discounting Costco requires.

I believe the pros to the Costco Auto Buying program are time savings, no haggling and a good price.
The main con is, there may be better pricing out there.

Good luck.

That's my point. Costco facilitates more car sales than any other institution. I find it hard to believe that the dealer sets the formula for the price. Because it certainly wouldn't be to the buyers benefit-and people wouldn't be using the service if the pricing wasn't fair. I can't tell you how many times a dealer's first quote was the MSRP to see if they could get away with it-to me as a buyer.
 
That's my point. Costco facilitates more car sales than any other institution. I find it hard to believe that the dealer sets the formula for the price. Because it certainly wouldn't be to the buyers benefit-and people wouldn't be using the service if the pricing wasn't fair. I can't tell you how many times a dealer's first quote was the MSRP to see if they could get away with it-to me as a buyer.
I have to believe the pricing is negotiated between Costco and each participating dealership.
It is in the dealership's benefit for an unsoliticed buyer to come in, take a spin, sit down and say yes or no.
Time saving works both ways, right?

I also expect car purchasing to move towards Tesla's direct model. Dealers add substantial cost and little benefit.
By far the easiest purchase I ever made.
 
I have to believe the pricing is negotiated between Costco and each participating dealership.
It is in the dealership's benefit for an unsoliticed buyer to come in, take a spin, sit down and say yes or no.
Time saving works both ways, right?

I also expect car purchasing to move towards Tesla's direct model. Dealers add substantial cost and little benefit.
It’s like 500 over invoice
That was some years ago

The educated and tough negotiators would end up with better deals without Costco. Invoice or below
 
It’s like 500 over invoice
That was some years ago

The educated and tough negotiators would end up with better deals without Costco. Invoice or below
But most people are not....hence the Costco benefit.
 
I put in for it in 2019 for a Honda Odyssey guy calls me from dealer. Tells me price. After shooting the **** with him for a while he says look our “internet price” is this for it (was cheaper than Costco) and I can do that. I’m imaging they made more if they sold it at the internet price (which was less) and didn’t have Costco involved
 
But most people are not....hence the Costco benefit.
Idk
Guess they don’t have to pay Costco their cut and salesman commission 100-200
Many Internet managers are on an hourly pay
Lots make it up in fees
Our local Ford dealer (part of a small chain) gets 800 document fee
200 nitrogen fee and from what I understand in the shop they don’t have nitrogen😂
200 to 400 cars a month x 900
😂
 
but selling at the Costco negotiated (between the dealerships and Costco) requires the dealership to follow Costco's rules whereas selling at the internet price, the dealership can add, subtract anything along the way they want to...

I've always figured those prices as a savings when I wouldn't have to negotiate much...if I choose (and I always have) to negotiate, I have always gotten a better price than Costco/Internet prices but it takes that bit of work...

I look at car buying as the dealership always wins...I just hope they win a little less from me when I buy...

YMMV

Bill
 
That's my point. Costco facilitates more car sales than any other institution. I find it hard to believe that the dealer sets the formula for the price. Because it certainly wouldn't be to the buyers benefit-and people wouldn't be using the service if the pricing wasn't fair. I can't tell you how many times a dealer's first quote was the MSRP to see if they could get away with it-to me as a buyer.

Using terms like "fair" is a matter of perception, I say this to people and most find it hard to believe but the happiest customers are always the ones who pay MSRP and the miserable ones are always the negotiators because no matter if you sell them a car at a major loss somehow, someway that evil dealership gave the customer an unfair price, took advantage of them, and got away with it.

As far as Costco goes, and this applies to the car business in general, the price usually doesn't matter. What matters is a customer's commitment to purchase every single time.
 
but selling at the Costco negotiated (between the dealerships and Costco) requires the dealership to follow Costco's rules whereas selling at the internet price, the dealership can add, subtract anything along the way they want to...

I've always figured those prices as a savings when I wouldn't have to negotiate much...if I choose (and I always have) to negotiate, I have always gotten a better price than Costco/Internet prices but it takes that bit of work...

I look at car buying as the dealership always wins...I just hope they win a little less from me when I buy...

YMMV

Bill
Re work
The guy who I saw got the best deal didn’t work
He came in with a business card
from Fisher investments
Said what he would pay and left
Never even test drove
He got a call
 
the work I meant was to use your example...getting the price he offered from somewhere...did he look at the supposed invoice and offer that?...did he see online what the vehicle he was interested in was actually selling for?...how did he arrive at that price?...

some people do their homework before buying and others go in blind and pay whatever the dealership offers even going with high financing rather than shopping around...

just be an informed purchaser and you'll probably be happier with the amount you pay for things...

Bill
 
Car dealers try to teach salesman to “control the customers and process”
It throws them way off when you control them and forget the process
the work I meant was to use your example...getting the price he offered from somewhere...did he look at the supposed invoice and offer that?...did he see online what the vehicle he was interested in was actually selling for?...how did he arrive at that price?...

some people do their homework before buying and others go in blind and pay whatever the dealership offers even going with high financing rather than shopping around...

just be an informed purchaser and you'll probably be happier with the amount you pay for things...

Bill
He had the invoice in his hand coming in
He was 700 below invoice
Knew about holdback
Knew about step up bonus
(Sell 200 in the month get 500 per car back from mfg- sell 300 get 750 per car)
No commission paid on that or the fees
 
that's my point...he did the "work"...whatever word you prefer to use he the homework and reaped the rewards...I hear all the time from people I worked with and such about going in knowing only that they want a new car and coming out with whatever was at a particular dealer...certainly that's their choice...it just isn't mine.

Bill
 
the work I meant was to use your example...getting the price he offered from somewhere...did he look at the supposed invoice and offer that?...did he see online what the vehicle he was interested in was actually selling for?...how did he arrive at that price?...

some people do their homework before buying and others go in blind and pay whatever the dealership offers even going with high financing rather than shopping around...

just be an informed purchaser and you'll probably be happier with the amount you pay for things...

Bill
Financing
Penske annual report shows 1600 or so per car in finance
The nada spend a fortune to say out of the bank reform bill
A look on their website shows their directors and lobbyists
 

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that's my point...he did the "work"...whatever word you prefer to use he the homework and reaped the rewards...I hear all the time from people I worked with and such about going in knowing only that they want a new car and coming out with whatever was at a particular dealer...certainly that's their choice...it just isn't mine.

Bill
I was saying in the context of sitting there and negotiating for hours coming down $100 at a time

As opposed to spending 5 minutes getting the invoice and dropping by 3 dealers for 5 minutes to leave your car and the offer
When he came to pick up he had his own cash
 
and I'm agreeing with you...I was writing mostly for this thread...I must have misunderstood when you quoted me using the word work...I think we are on the same page regarding this...

Cheers...:cool:

Bill
 
Using terms like "fair" is a matter of perception, I say this to people and most find it hard to believe but the happiest customers are always the ones who pay MSRP and the miserable ones are always the negotiators because no matter if you sell them a car at a major loss somehow, someway that evil dealership gave the customer an unfair price, took advantage of them, and got away with it.

As far as Costco goes, and this applies to the car business in general, the price usually doesn't matter. What matters is a customer's commitment to purchase every single time.
There are so many silly statements here I don't know where to start. Price absolutely matters. Dealers like to mitigate the price by saying "What monthly payment do you want?" Hence sell price can be high-by extended length of term of the loan. You guys are not selling many cars at cost. There is a formula available that Costco has for dealers selling cars to their members. Your agenda is to say there isn't so you can sell cars at a higher price. There are very few reasons to buy a car at MSRP-with all the resources available to buyers. Discounting/rebates, the usual games will be in place once this pandemic is over. Let me know if you are still in the business-and where you work at so I don't go any where near your dealership.
 
It’s like 500 over invoice
That was some years ago

The educated and tough negotiators would end up with better deals without Costco. Invoice or below
There is also the time saving benefit to a Costco deal. Time is $$.
But I tend to agree with you, with the Internet it is easy to pit dealers against each other.
At worst, a Costco quote gives you an idea of where to start negotiating.
 
My understanding is Costco auto purchase program is run by a third party. they use costco name recognition to give people a sense of security. if you read some of the reviews, they don't do much for you in the resolution side if you have issues after the sale.

i have tried to use costco buying service 2 times. twice, using their cost as a basis to start negotiation , i have gotten a better deal . one was $500 and the other $900. if one is not comfortable with negotiation, Costco buying service is a good alternative. Also, on extremely high demand vehicles, don't expect it to be offered.
 
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