Costco car purchase experience.

[raaizin]

In a previous thread ( link Below) I stated looking for a car for my daughter. Costco deal on a 2024 CRV sport Touring MSRP 42,005 was about $700 off MSRP and $600 doc fee and $400 DMV which are pretty much standard honestly there are many charging upward of $900 on doc fee in this area. There was zero add ons a mention in the below thread. Out the door price was $45,500 After some horse trading at a different dealer we got the car for $43,870 out the door all in. Keep in mind there is a .06625 sales tax included in that price doc and DMV fees as well. We got about $2,200 off sticker. I might be off on the discount by a couple of dollars as there was a lot of number back and forth. Bottom line we are happy with the price for a hot car and the area we live in is a little pricey. As a side note they let her take the car home on a personal check. I have always bought a car on a bank check only. My daughter had the money in two separate accounts and had a check for only one account. On Monday we will bring them a bank check from each bank for the deposit of $20k. She got 4.9% financing. She loves the car and is very happy with the deal. Anyone in Cenral NJ looking for a Honda I would recommend this dealer.

In summation the Costco deal is an ok deal but you can do better. The VW deal from Costco was a bigger discount right away but the Honda is a MUCH harder car to come by.

https://bobistheoilguy.com/forums/threads/crazy-dealer-add-on.379801/

 

[andrew_j]

Hope she enjoys it! Are they more comfortable /quiet than previous generations?

 

[Rand]

I sat in the woodland trim at the cleveland auto show. I thought it was pretty nice at 35k(for that trim)

 

[GON]

Thanks for posting the results! Good information.

I suspect if Dealer inventories increase in popular selling vehicles, the COSTCO process may save more $$$ for people that don't like to negotiate. Not sure how motivated a Honda or Toyota dealer in New Jersey is to sell their limited new cars at a reduced profit VIA COSTCO.

I suspect COSTCO can get a much better price for their members on Dodges, Buicks, Mustang Mach-Es--- than on Toyotas or Hondas in NJ.

 

[raaizin]

Hope she enjoys it! Are they more comfortable /quiet than previous generations?

Not sure how much quieter than previous but it was very quiet. She drove it around town and on a back road around 50mph and it was very quiet. As a side note the interior on the Sport Touring is very nice and compares quite favorably to my 2019 Q5 Prem+ and that says ALOT.

 

[Ursatdx]

You're a good Dad.

 

[fdcg27]

I know that we beat the Costco price on our two cars when we bought them.
The buyer who is willing to hang in and lay down a bottom line price will always do so while those who don't feel comfortable doing so would probably get a better deal with something like Costco or Consumer Reports than they would otherwise.
Those dealer folks are just so darn friendly in their efforts to separate you from your money that it's hard to remember that's what they're actually doing. Got to break through your normal courtesy and remember that it's all about the money and is in no way personal.

 

[GON]

I know that we beat the Costco price on our two cars when we bought them.
The buyer who is willing to hang in and lay down a bottom line price will always do so while those who don't feel comfortable doing so would probably get a better deal with something like Costco or Consumer Reports than they would otherwise.
Those dealer folks are just so darn friendly in their efforts to separate you from your money that it's hard to remember that's what they're actually doing. Got to break through your normal courtesy and remember that it's all about the money and is in no way personal.

Thats a great strategy- make it known its only about the money, and nothing else. Issue for the last few years is lack of inventory meant that if you walked from a dealer, another person would be buying that car. Years ago, if you walked from the dealer, that car might be sitting months on the lot, with the dealer paying interest on that sitting new car inventory.

Look at single family home sales, even today. Cash offers are king, waive inspections, waive appraisals, pay above listing price/ appraisal. That is a trend over the past five years, prior to that part of the sales contract for a single-family home almost always had clauses like appraisal, inspection, and buyer had to get financed. Times have changed, maybe in the car business- they will go back to pre covid times..... who knows....

 

[fdcg27]

Thats a great strategy- make it known its only about the money, and nothing else. Issue for the last few years is lack of inventory meant that if you walked from a dealer, another person would be buying that car. Years ago, if you walked from the dealer, that car might be sitting months on the lot, with the dealer paying interest on that sitting new car inventory.

Look at single family home sales, even today. Cash offers are king, waive inspections, waive appraisals, pay above listing price/ appraisal. That is a trend over the past five years, prior to that part of the sales contract for a single-family home almost always had clauses like appraisal, inspection, and buyer had to get financed. Times have changed, maybe in the car business- they will go back to pre covid times..... who knows....

All kinds of goods and services were much cheaper in 2019 than they are today.
The housing market is not a good analogue for the new vehicle market in that it's much easier to increase car production than that of new houses.
For one, manufacturers need to run their plants close to capacity to make money in any normal market and I think we're seeing a return to that, which will mean plenty of supply and a return to lower retail price levels.
The sheep will still get fleeced of course.

 

[GON]

All kinds of goods and services were much cheaper in 2019 than they are today.
The housing market is not a good analogue for the new vehicle market in that it's much easier to increase car production than that of new houses.
For one, manufacturers need to run their plants close to capacity to make money in any normal market and I think we're seeing a return to that, which will mean plenty of supply and a return to lower retail price levels.
The sheep will still get fleeced of course.

Not to argue; the car business is changing.

The USA's population is increasing, yet the amount of new car dealer franchises continues to decline. And the mega dealer groups are buying the already shrinking new car dealer franchises.

I recall looking for an alternative Lexus dealer in Washington state to have a replacement key made; the local Lexus dealer wanted exploitive prices for a replacement key. Discovered only four Lexus dealers in Washington state, and one dealer groups owns three of the four Lexus franchises. I have decided to wait to get a replacement key until I am in another state. No competitive deal on a Lexus coming out of the state of Washington, regardless of inventory levels.

Lack of competition and implied collusion is what may make buying a new car more challenging than pre covid, not just inventory levels.

 

[The_Jeff]

It must be some cave-man desire to want to haggle on a new car. If they think they can sell it for more, they won't haggle. If they know it's two weeks before their next shipment comes in, they won't. They know how many days' worth of inventory there is and this is a way bigger predictor than anyone knowing some secret Costco code to get a better price. I can't haggle for a share of VOO index funds but I can buy when the market is low. I did the same thing with my first ever new car, got it three years ago last week just before the words "chip shortage" hit the news.

Buy ugly, buy unpopular, buy the end of a model run. If they won't meet your price, sit it out. And of course try to make your current ride last forever.

 

[wavinwayne]

That's a NICE vehicle!

 

[JHZR2]

In a previous thread ( link Below) I stated looking for a car for my daughter. Costco deal on a 2024 CRV sport Touring MSRP 42,005 was about $700 off MSRP and $600 doc fee and $400 DMV which are pretty much standard honestly there are many charging upward of $900 on doc fee in this area. There was zero add ons a mention in the below thread. Out the door price was $45,500 After some horse trading at a different dealer we got the car for $43,870 out the door all in. Keep in mind there is a .06625 sales tax included in that price doc and DMV fees as well. We got about $2,200 off sticker. I might be off on the discount by a couple of dollars as there was a lot of number back and forth. Bottom line we are happy with the price for a hot car and the area we live in is a little pricey. As a side note they let her take the car home on a personal check. I have always bought a car on a bank check only. My daughter had the money in two separate accounts and had a check for only one account. On Monday we will bring them a bank check from each bank for the deposit of $20k. She got 4.9% financing. She loves the car and is very happy with the deal. Anyone in Cenral NJ looking for a Honda I would recommend this dealer.

In summation the Costco deal is an ok deal but you can do better. The VW deal from Costco was a bigger discount right away but the Honda is a MUCH harder car to come by.

https://bobistheoilguy.com/forums/threads/crazy-dealer-add-on.379801/

Which dealer?

$45k for a cr-v seems crazy, but nothing surprises me on car prices anymore I guess…

 

[The Lube Guy]

$45k for a cr-v seems crazy, but nothing surprises me on car prices anymore I guess…

It's downright unreal. Unfortunately people are more than willing to overpay, especially for gizmos, gimmicks, and creature comforts that are cheap for the manufacturer to implement, don't hold any value, and ultimately and most importantly, the buyer will most likely never really use or enjoy. I don't even need heated seats, or an automatic transmission. Maybe that's the dinosaur in me talking. Seriously though, it's ridiculous how much content in new vehicles is worthless excess, all the while many new vehicles ship with underpowered engines, and pathetic CVT transmissions. Many of us consumers have our priorities wrong. Then again, we have $1500 cell phones, and people buy them, so there is that.

 

[raaizin]

It's downright unreal. Unfortunately people are more than willing to overpay, especially for gizmos, gimmicks, and creature comforts that are cheap for the manufacturer to implement, don't hold any value, and ultimately and most importantly, the buyer will most likely never really use or enjoy. I don't even need heated seats, or an automatic transmission. Maybe that's the dinosaur in me talking. Seriously though, it's ridiculous how much content in new vehicles is worthless excess, all the while many new vehicles ship with underpowered engines, and pathetic CVT transmissions. Many of us consumers have our priorities wrong. Then again, we have $1500 cell phones, and people buy them, so there is that.

While I do agree some options are worthless I think that is true on higher end cars. Not sure what climate you live in but in NJ heated seats and steering wheel is just so nice. She parks car outside overnight and when its 20 degrees and she leaves for work at 7am they sure make the ride easier. It has Bose and sunroof two options she will use. All in all there isn't any options that are worthless. She kept her car we bought her till now ! 14 years and 190k miles and people say VW are unreliable! Hopefully this one will be as good. I am a firm believer in buying the highest trim you can afford so you wont get tired of a car quickly. We have kept all our cars 10+ years and close to 200k miles while working. In retirement I have treated myself a couple of times.

 

[KrisZ]

Since when heated seats are some high end options? $45k for a CRV is quite high, but it’s not due to gadgets and gizmos, it’s due to people wanting them and happily paying the price. It’s that simple.

 

[CKN]

It's downright unreal. Unfortunately people are more than willing to overpay, especially for gizmos, gimmicks, and creature comforts that are cheap for the manufacturer to implement, don't hold any value, and ultimately and most importantly, the buyer will most likely never really use or enjoy. I don't even need heated seats, or an automatic transmission. Maybe that's the dinosaur in me talking. Seriously though, it's ridiculous how much content in new vehicles is worthless excess, all the while many new vehicles ship with underpowered engines, and pathetic CVT transmissions. Many of us consumers have our priorities wrong. Then again, we have $1500 cell phones, and people buy them, so there is that.

If you want to switch gears in bumper to bumper traffic-and sit on cold seats in 20 degree weather my guest.....I take a pathetic CVT first.

 

[raaizin]

Since when heated seats are some high end options? $45k for a CRV is quite high, but it’s not due to gadgets and gizmos, it’s due to people wanting them and happily paying the price. It’s that simple.

This model is a hybrid top of the line . Car was $40.5k there was about $3.5k in taxes and fees... You can get a regular gas model nicely equipped MSRP around 34k which is quite reasonable for this vehicle.

 

[MaximaGuy]

45K prior to taxes & registration seems outrageous - these days everything seems normal.
Americans are getting sensitized to these ownership costs. Unbelievable a Rav4 hybrid also costs the same, we dropped the whole idea.

You will be quite happy w/ such a reliable vehicle, enjoy!!

 

[CKN]

45K prior to taxes & registration seems outrageous - these days everything seems normal.
Americans are getting sensitized to these ownership costs. Unbelievable a Rav4 hybrid also costs the same, we dropped the whole idea.

You will be quite happy w/ such a reliable vehicle, enjoy!!

You can drive a and new car with the latest tech or a beater-that's the choice.
You can pay the price or not...........