Is it worth getting a Costco membership before buying a new car?
By Cars & Motorcycles on May 06, 2009 with Comments 2
I am considering buying a new Toyota and the dealership I’m considering is a Costco authorized dealer which gives you a discount for being a Costco member. Some people have said it is ~3000 bucks and the membership is only 50. They don’t tell you what kind of discount you get though until you have a membership number.
Has anyone had experience with this discount program?
Filed Under: Buying New Car
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Costco Sells cars?
2. Another good experience
retmd| 02-04-07 | 12:59 PM
I used the Costco Auto service twice for leased vehicles and, like post #1, also had an occasion in which I was able to use the Coscto price to settle on an identical vehicle I was shopping for at a local dealer, as opposed to traveling further for a Costco participating dealer.
In fact, my local dealer knew in advance what the Costco price was, so either they may have been a former participating dealer, or those in the business are aware of the allowed premium that vehicles can be sold for through Costco.
In each case, I was pleased with the transaction. The participating dealerships will have designated representatives at the dealership who are the only ones permitted to speak with a Costco member, and they work with you in a professional, no-pressure manner, I think because they need positive feedback in order to remain in the Costco network of dealerships.
A few shortcomings I have seen are:
Not all participating dealers are conveniently located, so if you plan to have service done at the dealer where purchased, this can be a significant negative.
Not all models are given the same level of discount due to popularity of model or if it is a brand new model in short supply.
When you finally sit down with the “business manager” to finalize details, they will discuss extended warranties, special coatings or whatnot, that can increase the price and are, as far as I know, not subject to Costco pricing. I now am very wary of this step in the process as it can inflate the vehicle price.
Once I also went to designated dealerships participating in a special Automobile Association of America car purchase plan. When I compared their special prices to AAA members vs. Costco prices, they were practically identical. AAA does not have this service all of the time, however, whereas Costco does.
It would be difficult for me to purchase a car again the old fashioned haggle way, it is too time consuming, and is a game that I really no longer have the patience for.
Wishing you good luck as well.