March 21, 2023

Final Up to date on January 14, 2023 by Rose Morah

Is shopping for a automobile via Costco Auto Program price it?

Is it price your money and time?


Nicely, this text will provide help to determine it out via the experiences of different patrons who’ve used the auto program earlier than when buying a automobile.

On the finish of this text, you should have a greater understanding of:

  • Shopping for a automobile from a dealership vs Costco Auto Program
  • The professionals and cons of shopping for a automobile via the auto program
  • Is it cheaper to purchase a automobile via this system? 

We’ve got used this system just a few occasions earlier than. So, this text is principally meant to create consciousness, particularly relating to making an enormous buy corresponding to shopping for a automobile.

Due to this fact, we’re not selling the Auto Program nor have we been paid for the knowledge offered within the article!

Cons of shopping for a automobile via the Costco Auto Program

  1. Not all sellers are collaborating within the auto program

Relying in your location, you might discover that there should not so many sellers collaborating in this system.

The closest dealership that’s on this system could also be at the very least 2 to three hours away.

In truth, up to now 12 months (2022) there have been restricted inventories. The marketplace for automobiles has been insane as a result of world provide points which have affected the auto business.

This explains why some sellers might have opted to not take part in this system or different low cost plans, and why others have dropped out of the auto packages.

Moreover, some patrons have been on the wait record for six+ months! 

We weren’t capable of finding a dealership collaborating within the Costco Auto Program that was inside 200 miles in contrast to within the earlier years.

Moreover, those who we discovered on this system had been charging over the MSRP and had a very lengthy waitlist.

Nonetheless, this isn’t a Costco downside. The worldwide provide challenge is definitely the rationale why most sellers want to not take part in this system.

  1. Most collaborating sellers don’t embody widespread automobiles (hot-selling automobiles) in this system

We found that in case you are seeking to purchase widespread / hot-selling automobiles via the Costco Auto Program, then it may be onerous to seek out one. 

We had been seeking to purchase a selected plug-in hybrid early in 2022 and Costco was not providing it of their auto program. We tried with no luck.

Others have additionally had related experiences.

  1. Some sellers is not going to honor the Costco negotiating value

Most patrons who’ve gone via the Costco Auto Program have skilled dealerships that cost you greater than the Costco value, particularly since 2021.

Some folks additionally consider that the sellers could also be utilizing this system to lure patrons in, then add in plenty of different extras to make more cash.

As an example, you’ll discover a superb deal through the auto program that’s $500 off MSRP. 

However the seller finally ends up supplying you with a closing value that’s greater than what you had anticipated due to the add-ons and dealership charges. This will likely go up even to about $1500.

Solely so that you can later discover out that each one the opposite extras corresponding to guarantee should not a part of the Costco deal.

Which means that even for those who had been to contact Costco they’ll’t maintain the seller accountable.

Our greatest suggestions:

  • To save lots of you time, you’ll want to contact the dealership to seek out out their out-the-door value (OTD) earlier than going there.

This may assist you recognize what you anticipate to pay relating to tax, dealership charges, DMV charges, and so forth earlier than setting foot within the dealership.

Be aware: Most of those charges will rely in your location/state.

For instance, some can cost you lower than $1000 in dealership charges. In different states, you might be charged greater than $1000.

Moreover, in case you are not eager about any add-ons, ask them to not embody them within the value, that’s in the event that they haven’t been achieved already. 

  • Earlier than going to the dealership, contact them to seek out out in the event that they honor the Costco value

When shopping for a automobile via the Costco Auto Program, we contacted the dealership they usually informed us that they couldn’t honor the Costco costs throughout that interval due to the chip shortages.

  • All the time know the fairest value of the automobile you wish to purchase and which sellers are prepared to promote you at that value
  1. Some sellers ignore the Costco program patrons.

Primarily based on our analysis, some sellers ignore patrons from the Costco program.

For instance:
I do know of a man who went via this system to purchase a selected automobile, and in lower than a couple of minutes he obtained an electronic mail that it was offered out.

Nonetheless, when he referred to as the dealership to seek out out when they’ll have one coming in, they stated they’ve it on the lot.

Moreover, different sellers is not going to even hassle to answer in case you are shopping for via the Costco Auto Program.

  1. The Costco auto offers range based mostly in your location and the automobile

In case you are seeking to save extra by shopping for via the Costco Auto Program, your location will have an effect on how a lot you find yourself saving.

For instance, you won’t save a lot for those who dwell in an space with a excessive price of dwelling in comparison with these dwelling in a extra rural space.

Nonetheless, on the intense facet, you get a number of provides from sellers in several places in case you are seeking to get a superb deal, and should not afraid to journey.

However, for those who don’t thoughts the quantity being charged for the automobile and need comfort, then you should purchase via your native seller.

Moreover, some automobiles could have nice reductions and others little or no. For instance, you possibly can’t anticipate to get a superb low cost on the new promoting automobiles.

See additionally:

Don’t Purchase A Toyota Prolonged Guarantee Earlier than Studying This (Is It Value It?)

Is the Ford Bronco Dependable? (Is it price the price?).

The Finest and Worst Years For Toyota 4Runner (Consumers Information & Consultants Suggestions).

Professionals of shopping for a automobile via the Costco Auto Program

  1. You would possibly find yourself getting a less expensive value than you had deliberate for via this system.

For instance, earlier than the pandemic hit, we made glorious financial savings shopping for via the Costco Auto Program the place we acquired $5000 off the MSRP.

Many different patrons who purchased automobiles via this system have additionally gotten good offers which are under the MSRP. Nonetheless, this was earlier than the pandemic and isn’t assured, particularly throughout this time when the automobile market has gone insane.

  1. They’ve actually good provides

At occasions Costco provides some value reductions on particular automobiles whenever you purchase via their auto program.

The discount might be as a lot as $1500 or much more for a selected automobile. So, you might find yourself getting a discount off the negotiated value. 

  1. You find yourself getting the very best value with out having to take care of a salesman

For me, not having to take care of a salesman when you find yourself on the dealership means much less haggling and simple automobile buy.  

  1. You may get a number of offers from completely different sellers via the auto program

In case you are seeking to get a greater deal you possibly can widen your search to get a number of provides from completely different sellers collaborating in this system.

  1. It might prevent from overpaying when shopping for your automobile instantly from sellers

In line with CNBC, automobile sellers are making big earnings from excessive sticker costs which are over MSRP.

See additionally:

Finest Tires For Electrical Automobiles (Common Tires VS. Particular EV Tires).

Tips on how to Select the Proper Tire Measurement and Wheels For Your Automobile.

Hopefully, we are going to get a greater expertise from the Costco Auto Program when the present auto market ultimately normalizes.

Final and never least, you might use Costco costs as a bargaining device when shopping for from different automobile sellers. It received’t damage to attempt it out.