• The TUGBBS forums are completely free and open to the public and exist as the absolute best place for owners to get help and advice about their timeshares for more than 30 years!

    Join Tens of Thousands of other Owners just like you here to get any and all Timeshare questions answered 24 hours a day!
  • TUG started 30 years ago in October 1993 as a group of regular Timeshare owners just like you!

    Read about our 30th anniversary: Happy 30th Birthday TUG!
  • TUG has a YouTube Channel to produce weekly short informative videos on popular Timeshare topics!

    Free memberships for every 50 subscribers!

    Visit TUG on Youtube!
  • TUG has now saved timeshare owners more than $21,000,000 dollars just by finding us in time to rescind a new Timeshare purchase! A truly incredible milestone!

    Read more here: TUG saves owners more than $21 Million dollars
  • Sign up to get the TUG Newsletter for free!

    60,000+ subscribing owners! A weekly recap of the best Timeshare resort reviews and the most popular topics discussed by owners!
  • Our official "end my sales presentation early" T-shirts are available again! Also come with the option for a free membership extension with purchase to offset the cost!

    All T-shirt options here!
  • A few of the most common links here on the forums for newbies and guests!

Costco Is Selling More Cars Than Ever Before By Offering One Key Perk (Cost)

MULTIZ321

TUG Member
Joined
Jun 6, 2005
Messages
31,266
Reaction score
8,995
Points
1,048
Location
FT. LAUDERDALE, FL
Resorts Owned
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.
  • 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.
Costco's car business is thriving thanks to a perk that sets it apart from the competition.

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...."

costco-cars.jpg

Reuters


Richard
 

MOXJO7282

Tug Review Crew
TUG Member
Joined
Jun 6, 2005
Messages
5,524
Reaction score
1,300
Points
599
I've purchased several cars through Costco. Another great perk is the 15% discount you get on services and accessories which brings dealer price down to 3rd party pricing so for us that is a big value as well.
 

Gaozhen

TUG Member
Joined
Mar 16, 2015
Messages
245
Reaction score
16
Points
128
Location
Utah
Resorts Owned
Grandview Las Vegas, Divi Little Bay
Agreed - I bought my most recent vehicle through Costco at a local dealership, the price was well below what was advertised but was fixed, there was a gift card and discount for accessories, and a fairly substantial Costco cash card. It was a great experience.
 

jackio

TUG Review Crew: Expert
TUG Member
Joined
Jun 6, 2005
Messages
2,046
Reaction score
1,064
Points
524
Location
Long Island, NY
Resorts Owned
Sand Pebbles, Sheraton Broadway Plantation, Hawaiian Sun Holidays
We leased a GM car, and the dealer asked if we were Costco members. When we replied that we were, she gave us a number to call, and we ended up getting a $700 Costco gift card.
 

Mosescan

TUG Member
Joined
Jan 3, 2018
Messages
362
Reaction score
136
Points
103
Location
Canada
Resorts Owned
HGVC - Vegas Blvd, Craigendarroch lodges x 2
I got $1500 off my truck for being a Costco member.
 

VacationForever

TUG Review Crew
TUG Member
Joined
Dec 5, 2010
Messages
16,199
Reaction score
10,612
Points
1,048
Location
Somewhere Out There
I went to Costco website to figure how it works and I am a little confused. It does not show you the dealer's price. Does it mean that you show up at the dealer and just tell them that you are a Costco member and they will give you the perks or whatever lower price? It sounds like you need to trust that the dealer will give you a "good" price, or that Costco will issue a gift card. The details are not spelt out on the Costco site.
 

Passepartout

TUG Review Crew: Veteran
TUG Member
Joined
Feb 10, 2007
Messages
28,463
Reaction score
17,214
Points
1,299
Location
Twin Falls, Eye-Duh-Hoe
I got $1500 off my truck for being a Costco member.
Off WHAT? Sticker price? Invoice? How do you know? I suppose that if the $1500 was off a price that you'd already negotiated with a dealer, and there was no 'smoke & mirrors' deal involving a trade-in it would be a verifiable good deal, but the above statement reminds me too much of timeshare salesweasels' pages of circles and boxes and arrows.

Jim
 

Mosescan

TUG Member
Joined
Jan 3, 2018
Messages
362
Reaction score
136
Points
103
Location
Canada
Resorts Owned
HGVC - Vegas Blvd, Craigendarroch lodges x 2
maybe a little of column a and a little of column b! LOL! I was negotiating with the dealer. I got $1500 on a trade in, $3000 military discount and once we had settled on a price then I brought up the Costco membership and got the extra $1500 off as I new that was a standard offer from Ford Canada and Costco.
 

VacationForever

TUG Review Crew
TUG Member
Joined
Dec 5, 2010
Messages
16,199
Reaction score
10,612
Points
1,048
Location
Somewhere Out There
Off WHAT? Sticker price? Invoice? How do you know? I suppose that if the $1500 was off a price that you'd already negotiated with a dealer, and there was no 'smoke & mirrors' deal involving a trade-in it would be a verifiable good deal, but the above statement reminds me too much of timeshare salesweasels' pages of circles and boxes and arrows.

Jim
Precisely how I feel when I navigated through the Costco website. I doubt it is any better than the typical "internet" pricing.
 

klpca

TUG Review Crew: Veteran
TUG Member
Joined
Sep 11, 2006
Messages
8,273
Reaction score
7,280
Points
749
Location
CA
Resorts Owned
SDO, Quarter House, Seapointe, Coronado Beach, Carlsbad Inn, Worldmark
We bought our last car through them and if nothing else the time saved by not haggling was worth it. In our case it was the starting point, then there were manufacturer rebates and zero% financing on top. We looked at 15 different cars before buying and we felt that the Costco price was very good.
 

Elan

TUG Member
Joined
Jun 6, 2005
Messages
4,455
Reaction score
409
Points
468
Location
Idaho
My experience with Costco is that if one has no desire or ability to negotiate, their prices are ok. Otherwise, not at all competitive.
 

davidvel

TUG Member
Joined
May 9, 2008
Messages
7,432
Reaction score
4,477
Points
648
Location
No. Cty. San Diego
Resorts Owned
Marriott Shadow Ridge (Villages)
Carlsbad Inn
I went to Costco website to figure how it works and I am a little confused. It does not show you the dealer's price. Does it mean that you show up at the dealer and just tell them that you are a Costco member and they will give you the perks or whatever lower price? It sounds like you need to trust that the dealer will give you a "good" price, or that Costco will issue a gift card. The details are not spelt out on the Costco site.
From Costco website:
Locate & Contact
Select a new vehicle and locate a participating dealer near you. Shortly after submitting your request, anAuthorized Dealer Contact will follow-up to schedule an appointment at the dealership. We will also provide you with the Authorized Contact’s information, should you prefer to connect with them at your convenience.

Visit & Save
how-it-works_MOPS.png

Meet with the Authorized Dealer Contact and have them help you select a new vehicle. View the special Costco Member-Only Price Sheet which shows your exclusive prearranged price on the vehicle you selected.

An Authorized Dealer Contact will present the “Costco Member-Only Price Sheet,” displaying your prearranged pricing. The savings can be displayed in one of two ways: one version lists pricing for all models available at the participating dealership; the other will show a VIN-specific price based on the vehicle you select, including any applicable manufacturer incentives or rebates.
-----
I agree its a bit shady, and likely makes people NOT negotiate, when they probably could get a better price doing so (remember Saturn?) Especially with this little puffary nugget:

It’s always a good idea to see the vehicle’s invoice and MSRP too so you can see how much you save as a Costco member! :cheer::banana:
(Ok, I added the emojis)​

As if the MSRP and invoice tell you anything about what you are saving.
 

Bucky

TUG Member
Joined
Jun 6, 2005
Messages
2,027
Reaction score
963
Points
473
Location
The Carolina’s
Resorts Owned
Marriott Oceanwatch (2)
My experience with Costco is that if one has no desire or ability to negotiate, their prices are ok. Otherwise, not at all competitive.

Exactly. After several years in the auto business I can guarantee you that you can get a better deal if you are willing to do your homework in advance and know what to pay before even walking into a dealership. From a sales side of the deal we used to love having a Costco customer walk through the door. First of all we knew we weren’t going to get played for days and then have the customer go to another dealer just to save another $100. These buyers already knew what they were going to pay and for the most part ready to buy. Secondly, since salespeople are always paid by commission it frees them up to move on to the next customer quicker. From a dealers standpoint we knew we were going to make more from a Costco customer than we would from a well informed internet customer.
 

alwysonvac

TUG Lifetime Member
Joined
Sep 11, 2005
Messages
15,915
Reaction score
3,747
Points
848
Location
New Jersey
Resorts Owned
WORLDMARK, HGVC, VISTANA

SOLD (DVC, FSRC)
From Costco website:
Locate & Contact
Select a new vehicle and locate a participating dealer near you. Shortly after submitting your request, anAuthorized Dealer Contact will follow-up to schedule an appointment at the dealership. We will also provide you with the Authorized Contact’s information, should you prefer to connect with them at your convenience.

Visit & Save
how-it-works_MOPS.png

Meet with the Authorized Dealer Contact and have them help you select a new vehicle. View the special Costco Member-Only Price Sheet which shows your exclusive prearranged price on the vehicle you selected.

An Authorized Dealer Contact will present the “Costco Member-Only Price Sheet,” displaying your prearranged pricing. The savings can be displayed in one of two ways: one version lists pricing for all models available at the participating dealership; the other will show a VIN-specific price based on the vehicle you select, including any applicable manufacturer incentives or rebates.
It was our first time using Costco’s Auto Program last year. That’s how it worked for us. After completing the request online, we were contacted and the dealer provided the Costco Member-Only Price Sheet once we got to the showroom. It was quick and easy which is what we wanted.

Just to give you an idea, here’s the COSTCO prices from our local dealership back in November 2017. We were given a separate price sheet for each.

- 2017 Honda CRV AWD EX (This is the one hubby purchased)
MSRP $29,035 / COSTCO price $26,815 (Savings $2,220)
- 2017 Honda CRV 2WD EX
MSRP $27,925 / COSTCO price $25,778 (Savings $2,147)
- 2018 Honda Accord Sedan 1.5T EX
MSRP $28,360 / COSTCO price $26,320 (Savings $2,040)
- 2018 Honda Accord Sedan 1.5T Touring
MSRP $34,690 / COSTCO price $32,245 (Savings $2,445)
- 2017 Honda Accord Sedan 6cyl Touring
MSRP $35,350 / COSTCO price $29,845 (Savings $4,005 + Limited-Time Disc $1,500)
 

MOXJO7282

Tug Review Crew
TUG Member
Joined
Jun 6, 2005
Messages
5,524
Reaction score
1,300
Points
599
Exactly. After several years in the auto business I can guarantee you that you can get a better deal if you are willing to do your homework in advance and know what to pay before even walking into a dealership. From a sales side of the deal we used to love having a Costco customer walk through the door. First of all we knew we weren’t going to get played for days and then have the customer go to another dealer just to save another $100. These buyers already knew what they were going to pay and for the most part ready to buy. Secondly, since salespeople are always paid by commission it frees them up to move on to the next customer quicker. From a dealers standpoint we knew we were going to make more from a Costco customer than we would from a well informed internet customer.
Not to be argumentative but I disagree. I've researched thoroughly whiled purchasing several new cars and in my experience Costco beats them easily. It's was very easy to determine as well. Get the Costco price and shop it. We did that to non-participating dealers and they couldn't touch the price. I told them beat it and the deal is yours and not one of them could. I'd like to hear from those that did what i did and got a dealer to beat Costco apples to apples.

Anyone?
 

Elan

TUG Member
Joined
Jun 6, 2005
Messages
4,455
Reaction score
409
Points
468
Location
Idaho
Not to be argumentative but I disagree. I've researched thoroughly whiled purchasing several new cars and in my experience Costco beats them easily. It's was very easy to determine as well. Get the Costco price and shop it. We did that to non-participating dealers and they couldn't touch the price. I told them beat it and the deal is yours and not one of them could. I'd like to hear from those that did what i did and got a dealer to beat Costco apples to apples.

Anyone?

I suspect it's dependent on where one lives, how competitive the overall local auto market is, and how many local dealers are participating in the Costco program. Regardless, all we're going to get here is anecdotal accounts -- there won't be nearly enough data across multiple markets to derive anything conclusive.
 

MOXJO7282

Tug Review Crew
TUG Member
Joined
Jun 6, 2005
Messages
5,524
Reaction score
1,300
Points
599
I suspect it's dependent on where one lives, how competitive the overall local auto market is, and how many local dealers are participating in the Costco program. Regardless, all we're going to get here is anecdotal accounts -- there won't be nearly enough data across multiple markets to derive anything conclusive.
I don't know I live on Long island which is a huge car market and I negotiate very complex multi-million dollar technology deals for a living and as negotiations go cars are very easy to negotiate really so not sure why it would be any different anywhere. I would be surprised to hear someone do what I did and they got a better deal than Costco gave them. I guess my 3 Honda cars could be not the norm but I can tell you it was the case for me but I do get the sense it's true for all because Costco just knows what they're doing and has tremendous buying power, up there with Amazon, but not quite i'd say.
 

Elan

TUG Member
Joined
Jun 6, 2005
Messages
4,455
Reaction score
409
Points
468
Location
Idaho
I don't know I live on Long island which is a huge car market and I negotiate very complex multi-million dollar technology deals for a living and as negotiations go cars are very easy to negotiate really so not sure why it would be any different anywhere. I would be surprised to hear someone do what I did and they got a better deal than Costco gave them. I guess my 3 Honda cars could be not the norm but I can tell you it was the case for me but I do get the sense it's true for all because Costco just knows what they're doing and has tremendous buying power, up there with Amazon, but not quite i'd say.
You're making my point. If you live in a huge car market, the dealers are inherently competitive because cross-shopping is a given. You're likely going to get near the cross-shoppers price from the Costco service. Not so everywhere. Where I live one can only cross shop domestics and even that's a stretch. Generally speaking, you have to be willing to travel 400+ miles to get a really good deal on a new car. If you want a good deal locally, you're likely in for a lengthy afternoon of negotiating.

BTW, I don't think buying power has anything to do with Costco's car buying service. I could be wrong, but I'm pretty sure it's just a perk of membership. Like cheap hot dogs.

Sent from my Moto G (5S) Plus using Tapatalk
 
Last edited:

cgeidl

Tug Review Crew: Rookie
TUG Member
Joined
Jun 13, 2005
Messages
1,081
Reaction score
124
Points
273
Location
Fairfield,CA
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.
Costco's car business is thriving thanks to a perk that sets it apart from the competition.

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.
 

cgeidl

Tug Review Crew: Rookie
TUG Member
Joined
Jun 13, 2005
Messages
1,081
Reaction score
124
Points
273
Location
Fairfield,CA
JUst think Last year I sold over half a million cars and didn't make a nickle. Even a measley $00 each woudl bring 5 million.
 

Elan

TUG Member
Joined
Jun 6, 2005
Messages
4,455
Reaction score
409
Points
468
Location
Idaho
Re: Comparing Long Island to Idaho. Ford is pretty popular here because of their best-selling truck line. Seems like every third vehicle is an F150 or F250. In a 30 mile radius from my home, and I live in the largest city in the state, there are 3 Ford dealers. If I expand to 60 mile radius, there are 6 Ford dealers, and two of those are tiny. And then you're going quite a ways further to get to the next closest. I don't think the dealers consciously collude, but none of them are seriously undercutting the others on price.

Yeah, things are different out here.

Sent from my Moto G (5S) Plus using Tapatalk
 
Last edited:

T_R_Oglodyte

TUG Lifetime Member
Joined
Jun 6, 2005
Messages
16,118
Reaction score
8,066
Points
1,048
Location
Belly-View, WA
I buy my cars like I buy timeshares - resale. I let the original buyer of the car take the new buyer markup. I'll take advantage of the 25% (or more) price drop that occurs as soon as that new car leaves the dealers lot. I will also take advantage of the repair record that develops so I get a better idea of what cars are truly reliable.
 

davidvel

TUG Member
Joined
May 9, 2008
Messages
7,432
Reaction score
4,477
Points
648
Location
No. Cty. San Diego
Resorts Owned
Marriott Shadow Ridge (Villages)
Carlsbad Inn
It was our first time using Costco’s Auto Program last year. That’s how it worked for us. After completing the request online, we were contacted and the dealer provided the Costco Member-Only Price Sheet once we got to the showroom. It was quick and easy which is what we wanted.

Just to give you an idea, here’s the COSTCO prices from our local dealership back in November 2017. We were given a separate price sheet for each.

- 2017 Honda CRV AWD EX (This is the one hubby purchased)
MSRP $29,035 / COSTCO price $26,815 (Savings $2,220)
- 2017 Honda CRV 2WD EX
MSRP $27,925 / COSTCO price $25,778 (Savings $2,147)
- 2018 Honda Accord Sedan 1.5T EX
MSRP $28,360 / COSTCO price $26,320 (Savings $2,040)
- 2018 Honda Accord Sedan 1.5T Touring
MSRP $34,690 / COSTCO price $32,245 (Savings $2,445)
- 2017 Honda Accord Sedan 6cyl Touring
MSRP $35,350 / COSTCO price $29,845 (Savings $4,005 + Limited-Time Disc $1,500)
"Savings" off MSRP. About 7%. If Costco doesn't get a kickback/advertising fee for driving people to those "deals", they aren't the savvy Costco we all know them to be.
 

dominidude

TUG Member
Joined
Jan 15, 2015
Messages
794
Reaction score
104
Points
153
Location
maryland
I would be surprised to hear someone do what I did and they got a better deal than Costco gave them.
Though a lot easier said than done, this is what I did to buy a top of the line Honda Odyssey for $1500 less than the lowest price offered to me by a dealer in Costco's program.
-I went to various websites and signed up for daily emails on what vehicles came in inventory to dealers.
-I found the invoice price of the vehicle I wanted, and was unwilling to pay over it (this is very difficult to do on very popular models)
-I set the mileage radius to 200 miles from my home, which meant I'd get emails from any dealer within 200 miles of my home that had my desired vehicle
-whenever I'd get an email where the price seem close, I'd set up an appointment. I then had to drive to the dealer and on two occasions I had to walk out as the dealer would not come down to invoice, I had to drive about 100 miles in one of the two occasions.
-On the third try I found a dealer that had excess inventory that they wanted to get rid of right away, and i was able to buy $100 below invoice :).
Tip: It helps to get a lower price if you tell the dealer that you'll get their financing. Just make sure that your own financing institution is ok with paying off the dealer's loan.
Tip: most credit unions have "TrueCar, Inc" service, which is similar to Costco's buying service, but I find that TrueCar has way more dealers than Costco. I used TrueCar's website to find the car that I got through email at a lower price, then asked the price to be lowered further by offering to user dealer's financing.
 
Last edited:

dominidude

TUG Member
Joined
Jan 15, 2015
Messages
794
Reaction score
104
Points
153
Location
maryland
I've purchased several cars through Costco. Another great perk is the 15% discount you get on services and accessories which brings dealer price down to 3rd party pricing so for us that is a big value as well.

"15% parts, service and accessories discount only applies to work done at the participating service center. It cannot be used toward the purchase of air bags, oil changes, tires, or state-mandated vehicle inspections or be combined with any other promotions or offers. "
https://www.costcoauto.com/enterzipcode.aspx

Why is this 15% discount valuable to you? I cant see why it'd be valuable to anyone.
I take my car to Pepboys, their price is lower and and their service warranty better than the dealer's and I get 15% discount off their lower price as well, including oil changes, etc.
 
Last edited:
Top