Costco has an auto buying program offering members fleet pricing for new cars. I’d read comments about it online, some extremely favorable and others saying that you could do better. At least, a starting point. While some may enjoy the car buying process, many don’t, leading to the creation of no haggle philosophy’s of General Motors’ Saturn and Car Max.

 

Utilizing Auto Trader, Consumer Reports and Edmunds as guides, my husband diligently searched for an sport utility vehicle for me to drive. My brother commented that our car shopping was all over the board. Even though I’d determined that a sport utility vehicle was ideal, we were not limited to one category nor manufacturer. If you were a car manufacturer, and had an SUV that was 4 or 6 cylinders, you were considered. It was not easy replacing a Mercedes-Benz coupe I’d grown attached to with over 200,000 miles.

 

My requirements were quite simple, something safe for Monte Bubbles to arrive at dog shows in while carrying all her gear. His requirements were different, considering miles per gallon with the ever increasing gas prices, financing considering dual self-employment, the amount of miles driven per year, causing the 10,000 miles per year leases to be thrown out the window, and last but not least, unadmittedly something that would look good next to his BMW convertible.

 

Costco members contact a toll free number to obtain a referral for a dealership. You’ll need your Costco membership number and the name of a vehicle you want prior to contacting them. If you’re not certain and are looking at more than one car from a manufacturer’s line you can let them know too. They’ll explain how the program works, receive your contact information and give you contact information for the dealership. The fleet manager will contact you within 24 hours, although you can contact them sooner. This first step takes about 5-10 minutes.

 

Next, you’ll meet with the fleet manager. They’ll review what car you’re looking for and then get right down to the numbers. When you meet with the fleet manager, they will often pull out a price sheet which tells them what pre-arranged Costco membership prices are over dealer invoice, typically $500 over dealer invoice. They’ll share dealer invoice and what your price will be. The price can vary from car to car or manufacturer to manufacturer. If you ask, they’ll print it out for you.

 

After that, the typical steps you would go through in buying a car is similar.

If you’re considering buying a new car, following are some pros and cons at utilizing the Costco Auto Buying Program:

-They give you a great starting point for pricing.

-They maintain a database showing who they’ve referred you to..

-The second request you make for a manufacturer only takes a few minutes as they’ve already explained how the program works

- There may be additional offers that the fleet manager is able to offer you better than the typical $500 over dealer invoice.

- No pressure sales by the fleet managers.

- Once you start conversations with a fleet manager, you do not need to obtain an additional referral for a different vehicle from the same manufacturer.

-They give you one recommendation at a time so if you’re looking to compare pricing from several you have to call back.

-Typically, you have go in and meet with the Costco fleet manager initially to obtain pricing.

-The dealership may not be the closest dealership to you. (for the multiple manufacturers I’ve contacted them about, none were the closest dealership. All however were within 7-30 miles from where I live)

-You may be able to obtain better pricing through negotiating than the through the program.

 

Costco’s auto buying program has pros and cons, but in the end, it does exactly as intended, it saves you time and money.