Car buying programs - Costco, etc.

**kork13** · 07-06-2013, 07:14 AM

I'm a huge fan of these programs. I've personally used the car-buying services through Costco back in '07, and I used USAA last year in '12 (the only new cars I've ever bought). I was extremely happy with both of them. If you already know exactly which car you want to buy with options & the like, the process is excruciatingly simple.

In both cases, I basically selected the car & features I wanted, the service provided a list of dealers who would honor the pre-negotiated price, which in most cases, I found to be quite good -- $300-$500 above invoice (significantly below MSRP). I contacted a couple of the dealers to confirm their participation in the program & that they have the desired car in their inventory (or make arrangements for it to be brought in)... Be sure to speak with the online sales or fleet sales department (whichever they have) -- they are typically more straightforward with you. Once the car was ready, I showed up, signed the paperwork, and drove off. I spent literally less than 2.5 hours at the dealer, and that included a test drive of the car, all of the paperwork, and so on.

The one thing I'll caution you on is to be fully aware of your options as far as the money goes. Know if there are any cash rebates and/or special financing available. Whatever you do, make sure you walk in to the dealership with a prior approval for a loan (or available cash in full) so that that you can just write a check and be done if they can't give you a better option. They're still in the business of making money, so they might try some of the standard up-sell techniques or funny financing tactics, but as long as you know what you want and have everything set up ahead of time, the process should be very very smooth.

**97guns** · 07-06-2013, 07:43 AM

the last 7 cars in my family have all been bought through yahoo, they hook you up with the fleet manager and you go in knowing the invoice price, from there i negotiate with himr, i've been right around $500-$1000 over the listed invoice with all the buys.

**ukgaz** · 07-06-2013, 10:55 AM

Costco Auto can be a good option. Though the way I brought my truck last month was I emailed all the internet sales managers from each dealership. In the emails I noted the msrp price and what the invoice price was for the vehicle (the price the dealer pays the manufacturer for the vehicle). You can also let them know the price the Costco Auto program gave you. Once you get a internet sales manager that is willing to work with you you just go back and forth in email until you have the "price" that meets your budget (took 2 emails for me).

Without ever talking to the dealer on the phone I had my price, made an appointment to see the sales manager, took the vehicle for a drive and signed the paperwork. Was out of the dealership in 2 hours or so. It was relaxed for me and the sales manager. Our negotiations were done before we met.

I will never blindly walk into a dealership and take my chances with the first salesperson who sees me ever again.

**snafu** · 07-07-2013, 06:48 AM

I'd be interested in learning the criteria you use to decide that you required a different car. Do you plan to sell your current vehicle privately or use it as a trade-in? How wil/dol you value existing auto? Do you plan to buy a 2013, 2-3 y/o or older car? How did you decide which particular brand and model would best serve your transportation needs?

How will you fund the new car? What interest rate is offered based on your credit score? Does a CU or other financial institution offer a better rate? Does the contract allow you to pay extra affect a, applied directly to principal to reduce amount of interest paid? How does this new vehicle affect insurance? [some vehicle classes are ridiculously expensive]

Any input you're willing to discuss is appreciated.

**moneybags** · 07-07-2013, 12:09 PM

Originally posted by snafu View Post

I'd be interested in learning the criteria you use to decide that you required a different car. Do you plan to sell your current vehicle privately or use it as a trade-in? How wil/dol you value existing auto? Do you plan to buy a 2013, 2-3 y/o or older car? How did you decide which particular brand and model would best serve your transportation needs?

How will you fund the new car? What interest rate is offered based on your credit score? Does a CU or other financial institution offer a better rate? Does the contract allow you to pay extra affect a, applied directly to principal to reduce amount of interest paid? How does this new vehicle affect insurance? [some vehicle classes are ridiculously expensive]

Any input you're willing to discuss is appreciated.

Why so many questions?

*The car we are replacing is a 1998, don't want to pay for more repairs

*We always sell our cars privately to maximize our $$, will use kelleybluebook to value it

*Not sure what car we are getting - have to do some research. If we go with the Honda we like, it will probably be new since the used are not that much cheaper.

**snafu** · 07-08-2013, 06:23 PM

thanks for response, I had jumped to the conclusion you wanted a new car, no evidence supplied that you Needed another car due to age and repairs. Will you use a buying program?

**snafu** · 07-08-2013, 06:30 PM

oops. error

**debtfreeme** · 07-14-2013, 04:28 PM

New Cars

I investigated using several (trocar, Costco, AAA, and one other I can't remember) when I purchased my car this past spring and in the end I negotiated a cheaper price than any of them had for other customers. Glad I didn't use one.

**debtfreeme** · 07-14-2013, 04:36 PM

to add: I used the web for 90% of my negotiations. Once I knew what I wanted and with options, I sent an email to 5 or 6 dealers through their websites and worked with the one that quoted me the best price.

I saved more than $+2500 from my neighbor who walked in, test drove and negotiated on his own.

Car buying programs - Costco, etc.