MULTIZ321
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BLUEWATER BY SPINNAKER HHI
ROYAL HOLIDAY CLUB RHC (POINTS)
Costco Is Selling More Cars Than Ever Before By Offering One Key Perk (Cost)
By Kate Taylor/ News/ Stocks/ Markets Insider/ Business Insider/ businessinsider.com
Costco's auto program sold more than 520,000 cars in 2017.
On Tuesday, Costco announced that its auto program sold more than 520,000 vehicles in 2017. That's a 6% increase over 2016 sales figures, during a year when total sales dropped across the wider auto industry.
Costco's auto business has quietly skyrocketed over the last decade. In 2008, Costco sold roughly 200,000 cars a year — a figure that the retailer has more than doubled since then.
Despite the growing business, Costco doesn't make any money on the auto sales.
The vehicles are sold through partnerships with auto dealers, meaning that, technically, Costco itself does not sell the cars. Instead, the retailer uses the program as a way to attract new members and maintain existing members' interest.
Costco has one major perk that traditional car dealerships lack: fixed prices. That means customers can skip the bargaining and upselling that is expected at traditional auto dealers...."
Reuters
Richard
By Kate Taylor/ News/ Stocks/ Markets Insider/ Business Insider/ businessinsider.com
Costco's auto program sold more than 520,000 cars in 2017.
- The budget retailer grew car sales by 6% in a year when the industry's sales slumped.
- Costco's biggest advantage over competitors is that it has fixed prices, meaning customers don't have to bargain when making their car purchase.
On Tuesday, Costco announced that its auto program sold more than 520,000 vehicles in 2017. That's a 6% increase over 2016 sales figures, during a year when total sales dropped across the wider auto industry.
Costco's auto business has quietly skyrocketed over the last decade. In 2008, Costco sold roughly 200,000 cars a year — a figure that the retailer has more than doubled since then.
Despite the growing business, Costco doesn't make any money on the auto sales.
The vehicles are sold through partnerships with auto dealers, meaning that, technically, Costco itself does not sell the cars. Instead, the retailer uses the program as a way to attract new members and maintain existing members' interest.
Costco has one major perk that traditional car dealerships lack: fixed prices. That means customers can skip the bargaining and upselling that is expected at traditional auto dealers...."
Reuters
Richard