May 30, 2023

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

Is shopping for a automotive by Costco Auto Program value it?

Is it value your money and time?


Effectively, this text will enable you to determine it out by the experiences of different consumers who’ve used the auto program earlier than when buying a automotive.

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

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

We’ve got used this system just a few instances earlier than. So, this text is principally meant to create consciousness, particularly in relation to making a giant buy reminiscent of shopping for a automotive.

Subsequently, we aren’t selling the Auto Program nor have we been paid for the knowledge offered within the article!

Cons of shopping for a automotive by the Costco Auto Program

  1. Not all sellers are collaborating within the auto program

Relying in your location, it’s possible you’ll discover that there aren’t so many sellers collaborating in this system.

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

In actual fact, previously yr (2022) there have been restricted inventories. The marketplace for vehicles has been insane as a result of international provide points which have affected the auto business.

This explains why some sellers could 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 consumers 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 not like 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 drawback. The worldwide provide problem is definitely the explanation why most sellers favor to not take part in this system.

  1. Most collaborating sellers don’t embrace in style vehicles (hot-selling vehicles) in this system

We found that in case you are seeking to purchase in style / hot-selling vehicles by the Costco Auto Program, then it could 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 won’t honor the Costco negotiating worth

Most consumers who’ve gone by the Costco Auto Program have skilled dealerships that cost you greater than the Costco worth, particularly since 2021.

Some individuals additionally consider that the sellers could also be utilizing this system to lure consumers in, then add in numerous different extras to make more cash.

As an illustration, you can find a very good deal through the auto program that’s $500 off MSRP. 

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

Solely so that you can later discover out that every one the opposite extras reminiscent of guarantee aren’t a part of the Costco deal.

Because of this even for those who had been to contact Costco they will’t maintain the seller accountable.

Our greatest suggestions:

  • To avoid wasting you time, you should definitely contact the dealership to seek out out their out-the-door worth (OTD) earlier than going there.

This may assist you realize what you count on to pay in relation to tax, dealership charges, DMV charges, and so forth earlier than setting foot within the dealership.

Notice: 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 embrace them within the worth, that’s in the event that they haven’t been executed already. 

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

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

  • At all times know the fairest worth of the automotive you wish to purchase and which sellers are prepared to promote you at that worth
  1. Some sellers ignore the Costco program consumers.

Based mostly on our analysis, some sellers ignore consumers from the Costco program.

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

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

Moreover, different sellers won’t even trouble to answer in case you are shopping for by the Costco Auto Program.

  1. The Costco auto offers fluctuate based mostly in your location and the automotive

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

For instance, you may not save a lot for those who stay in an space with a excessive value of dwelling in comparison with these dwelling in a extra rural space.

Nonetheless, on the brilliant facet, you get a number of gives from sellers in numerous areas in case you are seeking to get a very good deal, and aren’t afraid to journey.

However, for those who don’t thoughts the quantity being charged for the automotive and wish comfort, then you should buy by your native seller.

Moreover, some vehicles may have nice reductions and others little or no. For instance, you’ll be able to’t count on to get a very good low cost on the recent promoting vehicles.

See additionally:

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

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

The Greatest and Worst Years For Toyota 4Runner (Patrons Information & Consultants Ideas).

Professionals of shopping for a automotive by the Costco Auto Program

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

For instance, earlier than the pandemic hit, we made wonderful financial savings shopping for by the Costco Auto Program the place we received $5000 off the MSRP.

Many different consumers who purchased vehicles by this system have additionally gotten good offers which might be under the MSRP. Nonetheless, this was earlier than the pandemic and isn’t assured, particularly throughout this time when the automotive market has gone insane.

  1. They’ve actually good gives

At instances Costco gives some worth reductions on particular vehicles whenever you purchase by their auto program.

The discount might be as a lot as $1500 or much more for a selected automotive. So, it’s possible you’ll find yourself getting a discount off the negotiated worth. 

  1. You find yourself getting one of the best worth 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 straightforward automotive buy.  

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

In case you are seeking to get a greater deal you’ll be able to widen your search to get a number of gives from completely different sellers collaborating in this system.

  1. It might prevent from overpaying when shopping for your automotive immediately from sellers

In line with CNBC, automotive sellers are making enormous income from excessive sticker costs which might be over MSRP.

See additionally:

Greatest Tires For Electrical Vehicles (Common Tires VS. Particular EV Tires).

The best way to Select the Proper Tire Dimension 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 software when shopping for from different automotive sellers. It gained’t harm to attempt it out.