Costco auto buying service

[SCBillandJane]

I was exploring replacing my TV, and decided to try Costco since they advertise that they can get you a better deal without a hassle. In my book ,going to a car dealer is right up there with a root canal at the dentist. I followed the steps and was assured that a $3000 discount on a $33,000 vehicle was their best price. I decided to do an internet search to the dealer where I purchased my last truck. Wow, they offered a $4,000 discount on the same vehicle, and they didn't ask where you were a member. I went to complain at my local Costco. A supervisor said to me that Costco had only had a store here for 7 years and that was too little time to expect Costco to know who was a good dealer. I just thought I would ask if anyone had a great buying experience with one of these buying services?

[oldstick]

Don't have any direct experience with cars buyers services but have heard of a lot of folks relating similar experiences to yours.

I figure they are mostly a convenience gimmick for both buyer and dealer. Same with the various bank and credit union buyers services. Wouldn't surprise me at all if Costco receives that extra $1000 as a commision if you had purchased through them.

[Redtail Cruiser]

There are several of online sites that will give you a quote on what fair pricing is on any vehicle. It is a good idea to compare all of them to get a good sense of what's what. I have used autobytel.com, truecar.com and Kelly blue book; however there are more. They will give you a good number to start negotiations with.

[Bill]

I've found that one of the best negotiating tools is patience, along with feigned reluctance. Example: When we were shopping for our new F-150 (The Moose!), we had spent a couple hours with each of several dealers in the area, so we knew exactly what we wanted, and about what we could get it for. When we reached the last (biggest, best) dealer, we actually spent two days haggling with a very pleasant young salesman. At the end, I just kept shaking my head and saying "I'm just not sure we can swing it", and making motions like getting up and leaving. At that point, an older salesman walked up, introduced hmself, and asked "Are you the folks that came here in the Ranger?" (We had indeed driven my beat-up '98 Ranger.) I assured him that we were, told him how much we liked the Ranger, and how much we really wanted another Ford. He turned to the original salesman and said "Did you tell them about the Ranger Owners Loyalty Rebate?" The first salesman looked confused for a moment, then said "Why, no, I forgot about that! Let's see, it is $1500, isn't it?" The older salesman wandered away - and we closed the deal.

A search of the Internet reveals no such rebate.

Bill

[oldstick]

Originally Posted by Bill

I've found that one of the best negotiating tools is patience, along with feigned reluctance.
Bill

Exactly my opinion too. Except in my case, I don't fake it, I always get up and leave politely at least on the first visit to a dealer. I pretend I haven't done any research yet, even if I have. "I'm not sure about this, I need to do some more looking around and look up the book values, yada yada." They almost fall over themselves trying to get you to stay, "We'll show you the value right here on our computer... etc." But they will normally call you within a day or two wanting to talk seriously. I will not go back however until they commit over the phone to a price acceptable to me.

But I will never even step into the office for a price quote period, unless I have found one that has the features I need AND I think there might be a chance of getting it into my price range. I excuse myself from the dealership before that point if none suit my fancy. Of course online research of their inventories can speed this weeding process nowadays.

[Padgett]

Are a lot of gimmicks dealers use but for a buyer TruCar is a good resource as to the actual value of a new car.

Best is to have no trade.

Three things a dealer uses for making a profit do not appear on web sites:
I) an inflated "document fee" or "service charge" which can be anywhere from $199 to $999 they claim is part of every contract. Need to look at every line item on the contract.

2) Another favoite on a popular (or not so) vehicle is the "two sticker two step" where the dealer adds a second sticker with things like a "market adjustment" charge. I just ignore those.

3) a 2-3% "holdback" the dealer receives from the manufacturer quarterly. That won't show up anywhere.

[eddugo]

If you are in Florida, I found Bill Jarrett Ford in Sebring to be the best place to buy a vehicle. They sell wholesale to everybody. SAles people are on salary - no pressure. Every once in a while they have a leader item with huge savings. I lucked out in 2011 and got a new 40K F-150 for 28K. Other deals are not quite that good, but still great deals. They do not advertise except web site and word of mouth.

[wbmiller3]

My uncle was a Ford executive and his widow kept some kind of employee discount plan. In the process of buying the Expedition, we attempted to use this discount to order a vehicle through one of the local dealers. While this was going on, the internet sales manager from the dealership called us and offered us the truck we ended up buying for less than the employee discount. It had the exact features we wanted. It had been used as a courtesy car at the Houston Livestock Show and Rodeo and had about 500 miles on it. I am still not sure how this all played out except maybe that was too many miles to be considered new? Anyway, it worked out great for us and we still have the truck 11 years later. Our goal is keeping it to 200K miles.

[Padgett]

Most automakers have "supplier's discounts" and these days AAA uses TrueCar which is as good as anything.

I used to have a "Class A" discount with GM which is similar to the one mentioned and later bought a 1990 Bonneville on the 500 mile rule (was driven for a week by a zone rep). Major discounts.

[LoveToCamp]

If one just dislikes the process of buying a car, then the buying services are okay. Just don't expect to get the best-possible price, as you are paying for a service.

For those of us who like the game of negotiation, we have the opportunity to make the best deal possible, as evidenced by some of the situations outlined above. Keep in mind that dealerships have different reasons for making deals. A demo car or a program car can be had with a few miles, but much-lower price. Sometimes, though, some program cars can't be sold as "new", so be aware.

Also, maybe a dealership has made enough profit on other car sales that month, but they still need to move a couple more cars to hit their target in "sold unit" number. They may sell it at less than invoice, knowing they still have the holdback. Or, maybe they are willing to lose the holdback, just to sell another vehicle. There may be a cash incentive for them to sell 100 cars this month, and they will take that, instead of a profit on your sale.

The more you work at a deal, the better the price, to a point. You will reach a point where they can't go lower, but you never know where that point is. Same car, different time of month, different price. With a buying service, it is a set price, no matter the day of the month. You get the best deal in-person, most of the time, depending on your negotiating skills. It is not for everyone, though.