Why I REALLY like the Costco Car Buying Service

Why I REALLY like the Costco Car Buying Service

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what's up guys are you here from Boston automotive consulting and today I want to tell you everything that I know about Costco's car buying service and if you're new to this channel please consider subscribing because I give a ton of both vehicle-specific negotiation guides as well as some general very useful tips when you guys are out there trying to buy brand new cars so the Costco car buying service guys Costco's car buying service works no different than some of the other car bank services that you might know about already such as true car Edmunds these are really just meant to get you just an invoice type of a deal something very very competitive and in some cases beyond the invoice price as in better than what the actual dealer owns the car for and this largely just depends on how aggressive of a market that you live in now this can both work in your favor and against you because dealers whenever they're getting your information as an interested buyer from a service such as Costco if they do end up selling the car to you they really can't sell the car anything less than what you were promised because they're paying these services a referral fee which is very very common in this online car buying service type of business because what they're doing is is basically rewarding the service for finding them an interested buyer this isn't necessarily a bad thing because they are producing a very very low price for you however it really minimizes your opportunity to further negotiate with that dealership for example I had a client reach out to me asked me to get him a really really good deal on a Toyota Highlander and coincidentally he had used Costco's car buying service initially and the deal that he was offered was offered at a dealership that I constantly do business with and when I approached that dealership about that client he goes you know can you give me the clients information so I can just double-check that he's in my system or not he pulled up that the fact that Costco had sent him in there so he goes listen re because I really can't help you because he was already offered this in this price and the price that you're asking me for not only do I have to go beyond this discount but I also have to pay Costco the referral fee for doing it so it's not just that discount that you're asking me for I've also got to pay somebody else because technically they sent him first so it kind of puts you in a tricky position where you can't really ask for or so try to do your own shopping first before using one of the car buying sites just to see what you would have gotten on your own what I do want to save them what I really really want to stress how Costco stands out from the rest of these car buying services Costco from time to time actually puts out very very aggressive deals that are vehicle specific for example right right now they've got one for I believe eight percent or so off of MSRP off of an Audi and in some months they've done a really really fat rebate on Volvo's as in like you could get like three thousand dollars off of specific model Volvo's that's in addition to any discount Costco member discount that they're giving you initially this is just subtracted from the bottom as and you can get the invoice price and use that rebate another example last summer they're running a five hundred dollar extra incentive for anybody that's shopping for a BMW as in you get that same aggressive deal and then at the icing on the cake is the extra five hundred dollars for being a Costco member it changes sometimes they do it on GM sometimes they do it on honda like the ridgeline that promotion if they had a couple months ago but when it's very very vehicle specific that's where this program really really shines so in all honesty I have nothing bad to say about the Costco car buying service and in no way was this video promoted by Costco however that would be kind of cool Costco hit me up let me know if you need some marketing luck anyway so what I really want to recommend is is definitely check out their service and try to see exactly how the car that you're looking for would blend in with what Costco is offering you and try to see if it could help you in addition keyword in addition to what you could have done on your own so guys I hope that this video maybe shed some light as to how Costco differs from the rest of the car buying websites that are out there if you found this information useful and you want to see more of these new car buying and negotiation tip type videos please consider subscribing thank you so much for watching guys we'll see you next time

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  1. My advice is to find the vehicle you want & test drive it. Walk away & come back the last day of the month & make them a lowball offer. If they decline walk away!

  2. Oh wow, time to exercise my Costco membership than just buying tubs of mayo and wine.

    I know that Costco does cars cause they got a BMW X5 parked right outside of the Avon store but didn’t know if it was actually any good. Thanks for the tip Ari!

  3. I thought based on the title that this video would be praising the program in general – which in my experience it shouldn't be – glad it did not. If you're looking at heavily discounted or outgoing vehicles this program is not helpful – mostly because it funnels you to one dealership for the price, that price is good but not great, and the dealership is still allowed to do dealer-adds to drive up their profit. However I agree that if you just want to do zero haggling or if dealers aren't budging on price or there are vehicle-specific rebates (or the $1000 customer rebate that happens randomly a few times a year) then that's a good time to use the service.

  4. Lincoln Navigator Reserve L w options.
    COSTCO discount off MSRP $4814.00.
    TRUECAR discount off MSRP $8928.00.
    SAME VIN, dealership and day!

  5. Does Costco require you to be a member for a length of time before you can use their car buying program?

  6. 2017 Toyota 4runner TRD Off-Road Premium (30K mi) for $35,998 no-haggle cash price? Good deal or no? Thanks in advance.

  7. Not sure how to interpret this but when I turned down the Costco price, the dealer made an offer $1,200 below the Costco. I was really confused and ended up not buying the car for other reasons. But one thing is not confusing, you can do a lot better than the Costco price.

  8. Really great advice there Ari. Another fantastic video. Keep up the great work. Are you ever going to be in the market for a new car for yourself? Just curious what you would get if you got a new car.

  9. Hey, you mind doing a video on one pay lease ? Also, it would be nice if you can include a segment of one of your car deal video with and without one pay lease to see the difference in lease payment? Thanks.

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