The Costco Auto Buying Program
You may have also noticed they offer a car buying service called the Costco Auto Program and are wondering if this is a good way to purchase a car.
The way the program works is that Costco has arranged pre-negotiated prices for their members through a network of car dealers. These pre-negotiated prices are based off the invoice - usually $500 above invoice price.
This is basically a marketing agreement between Costco and the dealerships. The dealerships pay Costco a fee of between $300 and $500 for each car that is purchased through the program.
This is where some people feel the Auto Buying program is a bit misleading. Most consumers don't realize how it works and assume Costco is the one selling the vehicles. Keep in mind you still have to purchase the car at a dealership, and could be subject to unethical sales techniques.
For example, you may get a good price on the car, but the dealer could charge a high doc fee and try to sell you add-ons you don't need. You have to keep your guard up at all times. Since dealers pay a fee of several hundred dollars to Costco to be part of the program, you will most likely get a better deal if you shop on your own and use my car buying method.
If however, you're the type of person who hates negotiating and are willing to settle for a fair deal, then the Costco Auto Buying program is a decent way to go.
Each week, I'll keep you up-to-date on the latest car deals and news that might affect your purchase. This includes...
- Best Rebates, Incentives, and Lease Deals
- Latest Car Buying Scams and Tricks
- The Best & Worst Time to Buy a Car
- Which Cars You Should Avoid