Costco auto purchase program?

[Mikej]

Wow, all these stories make me feel proud of how things are done at my dealership. Not saying the name as we are not a supporting vendor, so not trying to get free advertising.

Hey that's okay, there's nothing wrong with naming the dealer. You sound like you're member of ifish, where you had better NOT put a link to a business in a post. I've become somewhat disgusted with Tonkin Honda in the last couple of years. We're looking to buy a new/new to us, car in the next year. I dread the thought of dealing with a shiny suit/ pushy slaesman that treats me like I'm stoopid.

 

[SpongeRock]

Has anyone here used this, and are we happy for the results?

I too am in the car business (since 2003) and have to say that things have changed a great deal in the last 10 years. Costco program isn't necessarily the best price and neither is TrueCar. But it doesn't have to take hours negotiating, or playing dealers against each other. Most every dealer uses the CUDL (Credit Union Direct Lending) program to get you financing rates better than most banks. Is there a certain brand you're leaning towards? I would be happy to steer you to a particular person/manager I know and trust at any one of several local dealerships that I have friends at to save you time and money! Lexus, Mercedes-Benz, Cadillac, Toyota, Honda, Nissan, Jeep, Ram, GMC, Mini, and Subaru.

 

[NCW_Robert]

I too am in the car business (since 2003) and have to say that things have changed a great deal in the last 10 years. Costco program isn't necessarily the best price and neither is TrueCar. But it doesn't have to take hours negotiating, or playing dealers against each other. Most every dealer uses the CUDL (Credit Union Direct Lending) program to get you financing rates better than most banks. Is there a certain brand you're leaning towards? I would be happy to steer you to a particular person/manager I know and trust at any one of several local dealerships that I have friends at to save you time and money! Lexus, Mercedes-Benz, Cadillac, Toyota, Honda, Nissan, Jeep, Ram, GMC, Mini, and Subaru.

When I quite [selling cars] I was told any leads I sent them I would be paid anywhere between 250 to 350 if a sale was made. SO how much they paying you for these leads you send them? If it is zero then, well, I wont insult you with what I think of that and what your missing out on unless these are just your drinking buddies and your just the kind of dude who like to keep his drinking buddies behind the eight ball and buying all the beer all the time. Hay I been there and done that too.

BTW... nice avatar. on mine it was a lot of fun [PITA] switching out Marvin's ray gun with the 1911.

 

[enbrera1911]

Has anyone here used this, and are we happy for the results?

The very best buying service :USAA

 

[SpongeRock]

When I quite [selling cars] I was told any leads I sent them I would be paid anywhere between 250 to 350 if a sale was made. SO how much they paying you for these leads you send them? If it is zero then, well, I wont insult you with what I think of that and what your missing out on unless these are just your drinking buddies and your just the kind of dude who like to keep his drinking buddies behind the eight ball and buying all the beer all the time. Hay I been there and done that too.

BTW... nice avatar. on mine it was a lot of fun [PITA] switching out Marvin's ray gun with the 1911.

Dude, no I don't accept any bird dog kick backs for helping a brother out. Zero. I have a gentleman's agreement that if I send someone that buys from them, they reciprocate when possible for the product I sell. A beer, a day at the range, or a simple thank you is all I hope for but truly expect nothing in return.

 

[SpongeRock]

The very best buying service :USAA

USAA car buying program is administered through TrueCar. Members do get a deal that is pre-negotiated with the participating dealer, but it is never the best deal available! It is an easy way for someone to get a fair deal without any headaches however, most people can negotiate a better deal.

 

[DizzyJ]

When I walk in to buy a rig, I know what the actual cost is the dealer paid for the rig, and I also know how to go about getting them to sell it to me at just above that price!
Dealers HATE me YUGELY, because I know the dirty little secret they don't ever want the sheeple to know!
Last time i did that, I saved my F.I.L almost $25,000 on his brand new Dodge Ram 2500 Quad Cab! It takes ballz of steel to walk in and demand that price, and then stand your ground when they tell you PHUCK NO, and then you hit them with the Laws they are required to follow in answering your offer and a simple demand you make, and they fold like a wet noodle and start filling out the papers and get you out of there as quickly as they can, No steak and lobster for any one in the sales dept. that night! I love watching the sales manager turn all red faced when he/she is forced to take over the sale and sell me a rig like that!

Care to share the details?

 

[Dano 50]

Great Morning 41Mag,

I work at a Toyota store.
I tell all my friends and family to use the Costco program. The pricing is very competitive.
It saves time, monies and the bullbubblegum.
It also allow you to have Costco audit your deal if you feel things weren't right.

 

[Dano 50]

USAA also has a great program, our pricing is the same for USAA, TrueCar or Costco.
If you have any questions, your welcome to call, text or Email
Dan
503-621-6204
[email protected]

 

[Member 34319]

Great Morning 41Mag,

I work at a Toyota store.
I tell all my friends and family to use the Costco program. The pricing is very competitive.
It saves time, monies and the bullbubblegum.
It also allow you to have Costco audit your deal if you feel things weren't right.

Care to share the real pricing on what your dealership pays for a vehicle? Not MSRP or the BS "No BS real price" price?

Just curious if your NDA allows you to speak the truth?

 

[DirectDrive]

I found it to be kind of a joke.
I was able to get a better deal on my own.
Used Edmonds and Consumer's Report to track down what the vehicle was selling for, dealer's cost, etc.
For the CR document there was a small charge.

 

[Dano 50]

Care to share the real pricing on what your dealership pays for a vehicle? Not MSRP or the BS "No BS real price" price?

Just curious if your NDA allows you to speak the truth?

I am allowed, Toyota doesn't have two or three different sticker prices

 

[Ura-Ki]

@Reno is in fact asking the actually dealer invoice from the factory, not what ever the sticker is!
This is the dirty little secret the dealers hate having people know about! It's also the Law that dealers disclose that invoice when asked!
If your sworn/signed an NDA, then don't answer the above, we don't want you losing your job!

However, if you reply "Off the record" I'm sure many here would be much obliged!

 

[Member 34319]

@Reno is in fact asking the actually dealer invoice from the factory, not what ever the sticker is!
This is the dirty little secret the dealers hate having people know about! It's also the Law that dealers disclose that invoice when asked!
If your sworn/signed an NDA, then don't answer the above, we don't want you losing your job!

However, if you reply "Off the record" I'm sure many here would be much obliged!

Most dealerships compartmentalize information in regards to their purchasing prices.

Anyone who has ever worked any sort of retail knows if you buy multiples you get discounts. Dealerships, especially if they are a group or have multiple locations, buy 100-200 if not more of the same car at once. That means they get them for way less than MSRP.

Somehow the car industry has still kept a tight lid on their secrets. They also do a great job spreading their own misinformation and propaganda to allude to us that they are paying as much if not only a very small amount less than the end buyer does.

I asked him because it's amusing to me to see how he would reply. I highly doubt he even knows how much his dealership actually pays for the vehicle, other than what someone above him told him. Mostly, only a handful within the company really know what is paid buy the dealer per vehicle. Those folks are usually in some sort of NDA as well.

 

[NCW_Robert]

Most dealerships compartmentalize information in regards to their purchasing prices.

Anyone who has ever worked any sort of retail knows if you buy multiples you get discounts. Dealerships, especially if they are a group or have multiple locations, buy 100-200 if not more of the same car at once. That means they get them for way less than MSRP.

Somehow the car industry has still kept a tight lid on their secrets. They also do a great job spreading their own misinformation and propaganda to allude to us that they are paying as much if not only a very small amount less than the end buyer does.

I asked him because it's amusing to me to see how he would reply. I highly doubt he even knows how much his dealership actually pays for the vehicle, other than what someone above him told him. Mostly, only a handful within the company really know what is paid buy the dealer per vehicle. Those folks are usually in some sort of NDA as well.

They will never tell anyone what the kickback actually is. The dealer invoice thing is just so they got a number to tell customers so they never have to sell below a certain price. Some brands dealers really never have to worry about that but others do. Toyota don't, or at least I never seen/heard about it. GM and ford not so sure but I am guessing they do rely upon that supposed deal cost invoice thing.

If you calculate the number of cars a dealer sells and then calculate how much supposed profit he makes based on dealer invoice, any dealer would never even come close to paying his bills little on making a profit.

Want to know what cars really cost a dealer get a hold of his business tax returns then go to a business accountant who knows about car dealers and what general business operations cost and you could probably get close. I bet the kickback they get is pretty big.

I bet starting a car dealership cost HUGE money and the overhead is also huge. That kickback was small no one would bother with owning a car dealership.

 

[Member 34319]

They will never tell anyone what the kickback actually is. The dealer invoice thing is just so they got a number to tell customers so they never have to sell below a certain price. Some brands dealers really never have to worry about that but others do. Toyota don't, or at least I never seen/heard about it. GM and ford not so sure but I am guessing they do rely upon that supposed deal cost invoice thing.

If you calculate the number of cars a dealer sells and then calculate how much supposed profit he makes based on dealer invoice, any dealer would never even come close to paying his bills little on making a profit.

Want to know what cars really cost a dealer get a hold of his business tax returns then go to a business accountant who knows about car dealers and what general business operations cost and you could probably get close. I bet the kickback they get is pretty big.

I bet starting a car dealership cost HUGE money and the overhead is also huge. That kickback was small no one would bother with owning a car dealership.

Not yet at least. I still have high hopes someone out there will spill the beans on the internet. Someday....

 

[NCW_Robert]

Not yet at least. I still have high hopes someone out there will spill the beans on the internet. Someday....

People who know what that number is are high up in the food chain at the dealer and want to keep their jobs or be able to get another job. Also there is a question of credibility. Any one can say anything, but the only people who would be belived are people who have a vested interest in keeping quite. Due to that I would venture to say the facts on that will never be published. Even if it is some one who has retired if they have a retirement account controlled by the people they used to work for that is good enough reason to never disclose anything.

 

[Hellingbamster]

There's an older book out there that I would highly recommend to anyone interested in the sales tactics used by dealers in vehicle sales. It's called Never Get Taken Again".
It details all the tricks and techniques that dealers use on the unsuspecting and suspecting customers. I just did an on line search for it in the library system and the big A with absolutely no joy. Guess a used book shop would be the best bet if you're inspired.

 

[CDeWitt]

I used the costco auto program to custom order a 2019 F-350 last year it worked great. Price started at $1000 below invoice cost and then you still get all the current available incentives. Was very easy to use no haggling just a straight forward price well below msrp. I ended up over 10k off msrp after costco price and current available incentives. You can probably get a better deal if you do the lost leader route but I was happy to get a discounted price on a vehicle I special ordered.

 

[rfmjchp]

There are two invoices on new vehicles. One is called the Monroney sticker and is normally posted in a window of all new vehicles. US Senator Almer Stillwell Monroney, Oklahoma, sponsored the Automobile information Disclosure Act of 1958 which specified what info would be on this sticker. The second invoice is a manufacturer's invoice provided to the dealer. This one is not required to be disclosed and it is totally different in appearance. Its a listing of the total cost of the vehicle, equipment, advertising, etc. This is the one that tells the dealer how much he owes the manufacturer. Also this is the one the Costco program requires be shown to you..

I have bought 4 vehicles through the Costco program. A 2005 Honda EX-L Nav, 2009 Honda CR-V 4WD EX-L NAV, 2012 Ford F-150 XLT Supercrew 4x4 and a 2018 Ford F-150 XLT Sport 4x4 Supercrew. Only the 2012 had a small hicup. Supposed to see a designated person, who in this case, was the fleet manager. He was busy with a sale of 4 F-250s to a contractor, so he had another fleet sale guy take me to the general sales manager. Always shown the manufacturer's invoice.

Hint: The manufacturer's invoice for the 2018 F-150 had listed an advertising cost between $700-$750. When shown the truck, it still had the protective paper on the hood, roof, etc and plastic covers on the seats, floor mats also in plastic bags. When talking to a couple of sales guys I know later on, they said the advertising is what the manufacturer estimated what it would cost to advertise the truck for, either 30 or 60 days. When the truck is sold, the dealer gets that money. Both sales guys said based on the appearance of the truck, it was on inventory but not released for sale. Said I should have asked for that money be subtracted from the manufacturer's invoice since they didn't have to advertise the truck. The dealer still would have gotten the money.