If you are into the car news then you definitely heard about the Costco Auto Program. It offers one of the most popular ways to buy cars in the US and Puerto Rico. They have already sold around 500,000 cars and are still working to make this program better for people so they can buy good new cars and used cars. But before visiting the place you must have an idea how things work at Costco’s Auto program and is it worth investing your time and energy while buying your next car.
Everyone looks for different features while buying a new car for themselves, like a family man will choose a mini man on the other hand a businessman will go for something luxurious. So, every program has a pro and cons of it, and how a person can benefit from these. Today we will figure out how Costco’s auto programs work so you can know whether you buy a used car or not.
How Costco’s Auto Program Works
First of you need to be a member of Costco’s auto programs as it connects its participating members to dealerships that offer heavy discounts & reduced prices on new vehicles. The members can give a call to one of their centers or wishlist their preferred vehicles on CostcoAuto.com, where they get to filter out the vehicles on their make, model & model year. Costco then finds a local dealer that offers the same car in the lowest amount and then sends them the dealer’s contact.
However, Costco call center can help you arrange any purchase directly from the dealers as their online site helps you in comparing the top cars in which you are interested with reviews and monthly payments. This helps you with a thorough buying experience overall from your home.
The best thing about Costco Auto Program is they don’t cut off the sales in between you and the dealer. Instead, dealers pay Costco a monthly fee to participate in the program so they can benefit from their large customer base and dealers can sell their cars in a direct way. This makes them more perfect as it allows them to not to favour any of the dealers and follow a more transparent process with no conflict of interest over its price listings.
Another step that makes Costco Auto Program the best place to buy a new car is they randomly testing the dealers by Costco employees disguised as shoppers. If dealerships fail to represent Costco adequately can be removed from the program.
The Benefits When Buying a new Car from Costco Auto Program
- People who have already used this program to buy a new car find it very helpful. The Costco price is fixed, & you don’t have to step out of your home to negotiate a better deal with the dealers. With their dealers participating criteria, the buyers find it very genuine to buy from the dealers listed in Costco Auto Programs. The listed dealers provide higher levels of quality service to maintain their reputation and that is something consumers want from Costco.
- The listings of the car in the site shows the invoice price for each car and that is the price the dealer paid the manufacturer for the vehicle, and the manufacturer’s suggested retail price, which eventually reflects the price the manufacturer thinks the dealer should price the car. Such clarity and transparency while buying a new car makes the program special to every new & used car buyer.
- Another benefit to buying your new car from Costco is its range of options, as they offer thousands of cars that include trucks, SUVs, sedans, and hatchback from every brand. Members can also buy used cars without tension as they undergo inspections and repairs before sold to the buyer.
- If your interested vehicle has a high price, then you can buy it on lease instead of purchasing it at the moment. To sweeten this deal, the reduced Costco Pricing includes factory add-ons, & Costco members are eligible for manufacturer rebates as well. On the other hand, Costco lists all the special financing offers available at dealerships, helping you pick the best individual transaction for you.
The Drawbacks When Buying a new Car from Costco Auto Program
- Well, with great service comes the price that you need to pay. People consider this as a drawback to use Costco as they need to pay a fee to the members of this program. The gold star membership costs $60, while Gold star executive membership costs $120. You can’t find the discount until you visit the dealership, which is for Costco members only.
- The average discount through the Costco Auto Program is $1000, but this number varies quite a bit as you may end up visiting a dealer to get an unlikely offer.
- The dealers usually are not ready with your car once you have arrived. You have to wait for some time to get your vehicle, no matter if you already paid for the car.
- Costco can’t control the price offered by the dealers so it is not necessary that you’ll find the best price. And worst thing is, it usually happens to the users even paying for the membership. Dealers easily adjust their original price to make the discounts less damaging to their profits. You can visit a few dealers and surely you will get a better discount that Costco offers without too much hassle.
Things To be Considered
As per the reports from Costco, about 40% of dealership visits through the Costco Auto Program results in a purchase. The buyers can trade in their old vehicle and get the much lower discounted price for their new vehicle. Costco claims they monitor the discount services carefully so they’re competitive in the market and their members get a better deal than anyone.
Costco helps you with the research tools which you need to buy a new car. These tools help you compare the vehicles in which you are interested in, expert assessment for your preferred vehicle’s performance record.
The monthly payments, brands are the few things you should also consider before taking the membership of Costco auto program. With all the above points you need to figure out whether you want to be a member to buy a new car. Costco’s discounts are good enough to justify skipping the research that could net you a better deal.
Buying a new car and paying for a membership is perfect because it comes with the services. Even if you are not looking to buy a car, you can get very competitive quotes from the dealers that will help you with the future options and negotiations. You can see some reviews if you are not sure whether to buy this program. All the best from our side on your next purchase.