The Costco Auto Buying Program

 

I've been with the "Costco Auto Buying Program" since it was first introduced into the Utah market while I was selling Fords at our Sandy location. It's been a great partnership for both Costco and ourselves but I have found that not everyone fully understands what the program is and what to expect when dealing with a Costco dealership. Of course I would love the opportunity to make you and your family a client of mine but if not hopefully this article will help answer some questions and make you aware of what to expect.

What is the Costco Auto Buying Program?

The Costco auto buying program is a program designed to assist Costco members with a purchase of a new or pre-owned vehicle through a dealership that has partnered with Costco. This program enables members to avoid the negotiation part of buying a vehicle. As that price has already been pre-determined between Costco and the dealership. It is designed to save time for the client.

How much will the Costco discount save me?

The discounts vary depending on the vehicle and some specialty vehicles may not qualify. Typically, the price will often fall below invoice and that which a customer walking off the street could get. Because each vehicle invoices differently the Costco approved salesman will show you a Costco Price sheet and a copy of the invoice for clarification.

Can I get the Costco price at any dealership?

No. Only a select few dealers in each state are true Costco dealerships and have met the strict guidelines that Costco sets up. Other dealers may claim to be Costco dealers but this is easy to validate. If you submit your information via the Costco website, it will only send it to a Costco dealership or a salesman like myself could show you documents at the dealership like a Costco price sheet or certification that they have received.

Is there anything I should watch for when using the program?

Yes, and this is a very resounding Yes. The Costco program is a great way to purchase a vehicle yet dealerships do compete still with pricing and some in a very dishonest way. Make sure your salesman follows the correct steps (listed below) and watch other areas such as trade value, fees added to the vehicle and interest rates charged. The front price might seem better but you need to make sure that the end price is your main focus.

What are those correct steps?

1. Make sure your salesman is a qualified Costco Representative. Ask for certification proof.
2. You must have your Costco card on you in person and present it just like at one of their warehouses.
3. After you have selected a vehicle from stock or even out of a stock you should be presented with two sheets of paper. An authorized Costco Price sheet and a copy of the invoice (new only)
4. Make sure the write up matches those two sheets have a calculator handy.

Other questions commonly asked

Do I need to visit the store for pricing? No you do not need to visit the store, though trade values will not be 100% accurate until the vehicle is seen in person.

I heard that the dealership pays a fee to Costco is that true? Some sites claim a flat fee is paid similar to how Truecar or USAA charges dealerships, this is untrue as the dealership pays a flat subscription each month.

I qualify for a Ford A/Z/X plan price is that better? Sometimes plan pricing can be better. I would recommend asking to see both options.

Is the USAA, Truecar or other plan better? Like the question above sometimes it can be and again I would recommend asking to see it both ways?

My card has expired can I still getting pricing? No you would need to re-new the card before purchase.

Does the vehicle need to be in stock? No pricing will work for vehicles located at other dealerships though a shipping charge may be added if needed.

Can I order a vehicle and still getting Costco pricing? Yes.

Does the Costco pricing exclude you from Ford Rebates? No the rebates are controlled from Ford and therefor able to be used towards the purchase.

RECALL NOTICE: Some vehicles offered for sale may be subject to unrepaired manufacturer safety recalls. To determine the recall status of a vehicle, visit https://www.nhtsa.gov/recalls or click here. 

Interesting Fact "The Costco warehouse located close to my Ford store in downtown Salt Lake is actually the largest Costco Warehouse in the United States"