DOES IT REALLY SAVE YOU MONEY? $$$ The Homework Guy Kevin Hunter Review of Costco Auto Program

CAR PROGRAM AT COSTCO help high prices? Does #COSTCO Auto actually save Car Buyers money with their Auto Buying Program? "10 Shopping Secrets Costco Doesn't Want You To Know!"
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[@KevinHunter]

Chapters in this video 0:00 Kevin Hunter presents Costco Auto program is it worth it for car buyers 2021 00:50 Costco Auto Program 02:09 Costco Dealers 02:24 What is Covered 02:48 Call Directly with Costco Representative 03:39 The Costco Member Experience 04:09 How Dealers Set Car Prices 05:09 How to become a Participating Costco Dealer 05:51 Costco’s No Haggle Model 06:05 Does Costco help Car Buyers with Finance Advice? 06:57 Consumers still must do Due Diligence on their own 08:02 How Costco matches you up with a Dealer 08:35 What Training does a Costco Approved Car Salesman get? 09:36 How can a Costco Member file a Dealer Complaint? 09:56 Review of Costco Auto Program 10:29 Are Costco Car Prices any better than what you can negotiate on your own? 11:09 Dealers choose what cars they want in the Costco Auto Program 11:51 Summary of Costco Auto Program 12:21 Costco Auto Disclaimer

[@ThisOldSkater]

The price experience was exactly what they said it would be, but the process still took forever. My car was buried behind a bunch of other cars they had to move, the finance guy wasn't there, a few upsell attempts, etc. It took about 4 hours. I still saved about $4000 on my car (Costco + Rebates + a "loyalty" discount).

[@jwar2163]

I went to a dealership that was listed under the Costco program, but had lost their participation in Costco program because of bad practices. The website for Costco was out of date. How I found out was via differences in the invoices for same model same options different colors of the car. I walked away. I called Costco Auto Program and was satisfied that the dealership was removed. You can get a car or truck cheaper than the fixed price from Costco. Remember never tell dealership that you are paying cash until the very end of the deal and the final price is in writing. Also never sign or agree to anything without reading. If you are tired schedule to return the next day do not be pressured into a purchase.

[@harold-miller]

I got 2 brand new Toyota vehicles through the Costco program. They were $1,600 under invoice and I felt like I got a great deal. I confirmed this by taking the offer to other Toyota dealers in my area. I was effectively laughed out of other showrooms which confirmed that I was getting the very best price.

[@Getitstraightyo]

"invoice" (emphasis needed)

[@williamzhang963]

Under invoice?? Are you sure??

[@harold-miller]

@@williamzhang963 They showed me the actual invoice. But of course, it did not show any factory to dealer incentives which is how I figure they are able to offer the vehicles below the invoice price.

[@williamzhang963]

@@harold-miller Maybe this was 3 years ago when cars weren't selling during the pandemic?

[@harold-miller]

@@williamzhang963 Yea, defintely pre-pandemic. I do believe that the Costco program still has a lot to offer. I do believe that the days of under invoice sales will be back, though.

[@chrisakans]

I spent a ton of time researching a specific Make and Model, brand new vehicle. I shopped all the dealers in my area independently. I took detailed notes and got offers from 5 dealers. Then I used the Costco program to shop the same Make and Model. The Costco program “says” it will “ensure” you are given all Manufacturer incentives available. I found this to be untrue with the “Costco price” as compared to my previously obtained, independent quotes. I contacted the manufacturer to make sure I had the correct list of all incentives available to me and what the qualification criteria was. Long story short - the dealers price lower overall with all the incentives, the costco “price” was lower before incentives but the dealer told me I couldn’t mix the two. I filed a complaint with the Costco program. The Costco complaint department basically said that the dealers ultimately determine which incentives are available in any given scenario and have the final word. I was so disgusted with both this dealer and the Costco program I took my business elsewhere.

[@ridedatrainmarv1]

Agreed on your analysis. Thank you, Kevin Hunter. I worked with a Costco Auto Program dealer in NJ and it did not work out well. They said I could not negotiate any dealer options if I accepted their discounted car price. After I said I didn't want to buy that day, they ignored me. They mandated their accessories package and were not interested in dealing with me when I wanted to negotiate. I did not see an itemized Costco car charge on the price sheet. They had a $699 doc fee on my cost sheet in addition to a Vin etching fee and $1600 in a non-negotiable "protection package." Didn't enjoy it because I don't think the sales rep was a moral person.

[@hfollos]

Do you have the choice not to get the $1600 protection package?

[@Crazy-Humans]

I have been avoiding buying a new truck because I hate dealing with dealer sales people. I started watching your videos a few days ago. Thank you for all the extremely useful information. I think I will end up using the Costco program. Your videos are awesome. I wish you lots of success.

[@doctorrobert60]

I have used Costco twice for auto buying. First time was for new 2012 Subaru WRX STI. Went to dealer after initial contact online through Costco Auto Buying website. The price was dealer invoice and any added options were also invoice cost. The dealer did not have the color nor options I wanted and I was able to order the car as I wanted after putting a fully refundable deposit. I used Subaru website trade in value on my previous car which is very fair value. I paid the difference in cash so not financing involved. I refused all other things finance was pushing and was out of the finance office in 20 minutes. I thought it was fair and stress free. Sure, I could have shopped around and might have saved more but this model was at the time in some demand so was happy in the end. Costco did follow up about the shopping experience. I must say the dealer was very cordial in the deal.

[@335i101]

I thought the call rep did very well. I was actually surprised and impressed with him.

[@TheBusinessForumShow]

The rep had no idea we were calling, and had no idea he might be featured on KZbin. If you noticed, we pinned a comment that was actually from Costco asking us to redo the video entirely and include more of their own viewpoints. We declined.

[@tonyburkesd]

I have used Costco Auto Buying Program (CABP) several times, even when a neighbor was one of the largest dealers in the area. While the price is normally good you have to be alert when in Finance. Many will still try to add in all their 🐂💩fees. Don’t be afraid to challenge them on these fees. Also, be aware if you decide to trade-in your old vehicle. Know the trade-in value of your vehicle or be prepared to sell it yourself. These are all areas you can be taken to the cleaners if you don’t pay attention. But if you’ve watched Kevin’s videos and taken notes you should come out fine using the CABP.

[@jeffmill]

My experiences (twice with Costco) exactly. Great summary.

[@edstraight846]

Having worked in the car biz for 11 years, 8 as sales manager, I appreciate your straight-forward approach in your videos. Excellent training and the straight scoop about what goes on.

[@KevinHunter]

Thanks for stopping by, Ed! It's always great to hear from people in the car business, especially the good guys!

[@dyates6380]

I've used it for my last two vehicles, and have been very satisfied. I did know exactly what I wanted both times, and I also understand it's beneficial to both the buyer and obviously, the dealer. It just eliminates the haggling, other than the trade in value. I like it.

[@DonSteffano]

I tried 3 times to buy with Costco and every time I got better deals on my own.

[@cooperparts]

I agree but I know people who would get screwed at a dealer works for some people never used them

[@williamhaynes7089]

@@cooperparts - but these people still end up in finance dept. and get ripped there

[@codystone1686]

I’m a Mazda salesman and we use Costco program at my dealership. It’s great for the customer, around $750 below invoice currently. The lowest I’d go before letting someone walk away is ~$1,000 under so Costco is a very good deal and you get it for exactly 0 effort. I’m sure this isn’t true everywhere but for me it’s a win win.

[@saxmandave1]

I used the Costco car buying service 7 years back and was very satisfied with the price and the process. The only problem I had was that the sales rep came back twice with a higher price and I had to get him back to the original agreed upon price. I got what I wanted at a fair price and I got 0% interest with no added warranties or extras. My car is still running like a champ!!

[@todd5082]

Costco brings thousands & thousands of car buyers to the table and that’s their clout for the negotiated lower price. Volume. I’m not against dealerships making a profit. I’m against being ripped off!

[@KevinHunter]

Essentially, the lazy buyer (which most interestingly are) will likely do a little better than they would have if they had gone out on their own. However, that's only on the price of the car. A buyer who feels "relaxed" because they are following the Costco process will get totally burned with everything to follow. That laziness will cost them big time in accessories and finance. In the end, they could easily pay more than if they had gone anywhere else and been watchful through the whole process.

[@ionu4535]

@@KevinHunter Synopsis of your video; your killing them off Kevin, TYVM.

[@dailyrant4068]

@@KevinHunter Your video was neutral and well made but I have to disagree with your comment. The accessories and financing have nothing to do with costco. You are correct dealers have higher mark ups on accessories but that's the nature of the beast. Financing is the same deal. No matter where you buy (with or without Costco) you still need to get your own financing or simply use the manufacturer banks (especially if they make incentives available only for financing with them). Costco is great for majority of buyers who do not want to go through the hell of haggling with dealerships (who are some of the worst people of society, in my opinion). And all of this is coming from someone who is good at researching and negotiating prices, which means I'll never use Costco personally.

[@jstephens2758]

​@@KevinHunter How does the use of a car buying service such as that offered by Costco compare to buying from a "everyone pays the same price" dealer. In my area, one dealer has this policy and all of the competition simply matches that price. It seems they wouldn't do this if they were not making a substantial profit. So, does the customer lose?

[@KarlH1980]

@@KevinHunter Lazy? Really?

[@kevintheomanharris]

bought my past two vehicles through costco (both new). I knew exactly what I wanted and the latest vehicle actually ended up being a factory order. Very happy with the process; I'm sure my next vehicle will be through Costco as well.

[@c.c.fielder5432]

Bait and switch program. We went to 3 dealerships, updating paper work with Costco each time. Soon as settling in on suv, they switch you from Costco program to their hard sell routine. Best deal we got came from haggling price to price willing to pay. Some good honest dealers will negotiate, walk out on the crapheads that only want to discount 1% and get you off Costco pricing. You get better negotiating, winning is so sweet.

[@TheSanityInspector]

I'm about ready to use the Costco program for my next vehicle purchase. It's tailor-made for someone like me, who does not have the stomach for protracted high-pressure negotiation. So I really appreciate knowing the bits about how finance and accessories are a whole other kettle of fish.

[@andreao.gilmore3064]

Great info Thank you! I'm currently looking into using this program. I decided to ask my sister about her experience since she and her husband used the Costco program to purchase TWO cars. On the 2nd purchase with the same dealer, they tacked on $3,000 for extras she didn't want. She was not happy. The experience became a nightmare and she became a thorn in their side and went back 3 times until they made it right and took out the extra $3k they charged.

[@1Serval]

It was more expensive going through Costco, than doing it myself.

[@mariaavakian4910]

Same here . I saved a $1000 by avoiding Costco

[@MeepChangeling]

@@mariaavakian4910 No, you spent 1000 dollars worth of your time. You saved nothing. Everything is an expense of a resource. You simply trade one for another.

[@Seventeen_Syllables]

I bought my Honda through the Costco program in 2013, and still have the car. It isn't an expensive car, and given that I've had it for seven years now if I could have saved a bit with negotiating skills it would probably not be so much on a per-year basis. The next car I bought was a Ford in 2017, but I used a different buyer program. Same theory, I intend to keep it for a number of years and I know I got pretty close to the typical price based on the online tools. Obviously my car-buying skills are not particularly well-honed since I buy a car only once every few years, so to me the services are good enough. The worst part of buying a car is going in to the office with the closer, if that's what they call them. That's the guy who arranges financing and so forth, so forgive my choice of term since I don't deal with car buying much. I learned a long time ago that extended warranties rarely end in the buyer's favor, but I think for some cars (like a twin-turbo Ford) it probably makes sense to get one for peace of mind if nothing else. But Hondas are known for reliability. You would not have known that from the closer. To listen to him try to sell me an extended warranty you would have thought I was buying a Yugo. I did not buy the extended warranty for the Honda, made a big down payment, and kept the loan as short as I could. Seven years later and almost no repair bills, I'm sure I did not need the extended warranty. As to the Ford - so far I haven't needed it, but it's still pretty young. I'll be sure to check out more of these videos the next time I need to buy a car - maybe next year or maybe not.

[@alphakilo9066]

I have purchased four vehicles with the Costco program. Only once have I paid the Costco price. The other three times I was able to shave a couple hundred off of the price, getting the vehicle down to just above, or just below, the true invoice. I think it is very important to know both the invoice price of the vehicle/model you are shopping, as well as the invoice price of the common options on that vehicle. I usually walk in with a notebook and my iPhone fully charged. I have also found it better to do car shopping in the last month of the quarter, and the end of that month. The Labor Day holiday sales are also opportune. It helps take some of the initiative and advantage off of the Dealer's side. Even so, I always assume the Dealer is "holding all of the cards" when I walk in the door. Good video, Kevin.

[@NewYorksFinest1]

i used costco auto program for my car but i used them as a way of negotiating my price even lower because costco tells me the price for the car, i then go online and see what others paid for that car. I then take out a loan from my credit union for the amount i'm willing to pay after all the fees etc. ( no extra accessories or extended warranties etc) I then emailed all the companies that contacted me through costco and tell the dealerships the final price i'm willing to pay until one agreed on the price and car i wanted. i ended up saving approximately $3000-4000 by using costco and negotiating my price. The internet is your best friend and can save you alot of money. Thanks Kevin your site is helping alot of people.

[@sceb]

New Yorks Finest great strategy! When I purchased my last new vehicle (2013 Ford Escape) I used CarsDirect) and although I was satisfied by the discount I received, the person I dealt with at the dealership asked me to come to him directly on my next purchase suggesting there was money left on the table. I’m going to be in the market for a new car soon and will definitely be using your strategy! Thanks!

[@ethanb8048]

I work at a small used car dealership and I have been using your videos to help improve myself at work. The owner only accepts cash as payment. We advertise a vehicle at the exact price the customer will pay us other than required fees like title transfer and taxes.

[@johnf8877]

I tried it in the Spokane area. They must have selected the sleaziest salesmen possible. They called me constantly and when I told them exactly what I wanted. They kept sending me vehicle I didn't want and would not give me a price unless I went into the dealership. I walked into the dealership on a weekday with a appointment. After waiting for 20 minutes I walked out.

[@RichardShelton]

My own experience with the Costco program wasn't a very good one, but that was many years ago and I'm not sure it's fair to assume that the program still runs the same way. I got intercepted by another salesman on the way in to the dealership, and he basically refused to let me talk to the Costco guy. Being younger and much more stupid, I didn't insist on seeing the Costco guy only, and this jerk started playing the silly game of writing numbers on a piece of paper and sliding it across the table to me as if we were trading Cold War secrets at the Brandenburg Gate. Thanks to help from people like you, that won't happen to me again! Since then, I bought a Genesis thru the USAA Auto Program and it went pretty flawlessly. Thanks again for your amazing videos.

[@kdcraft89]

HA, HA, the cold war secrets Brandenberg Gate!

[@wildmanofthewynooch7028]

I looked into this program And my wife and I did better using Kevin’s advice and we saved 3,000 over what Costco offered.

[@Rocketwinger]

I was in the market for a new car. I found a car I liked and went to the dealer to workout the deal. I was having a difficult time getting my payment to my satisfaction when the sales man asked if I was a Costco member? I replied yes. He came back with a lower number than I was asking by going through the Costco program. In addition to that, I was also given a $700 gift card to shop at Costco. In my experience, I had no problem and would definitely use the program as well.

[@in2food]

I bought a Subaru Crosstrek through Costco. I’m in my 60’s so I am very experienced in buying cars and know my stuff. I thoroughly researched my car so I know I got a good deal. Not only got a good price but it was so easy. No haggling and boy was it fast. I was in and out of the dealership in record time. I’ll use them again.

[@14drback]

If you didn't haggle you didn't get the best price. Recently used Costco for a price on a Honda. The dealership was 2 hours away so I took the printed price to a local dealer and they immediately beat it. Costco is a starting point don't be fooled.

[@rickytam4004]

@@14drback This is exactly true. They hope that people get blinded by the fact that costco is a great place for buying every other thing so they could trick you out of a lot of money. I was able to find a new car 5% less than the costco price at another dealership. All while the costco dealership kept pressuring me by telling me I wasn't going to find anywhere cheaper. Fuck car dealers.

[@billiebobbienorton2556]

I went to Costco to buy a car. I went up and down every aisle to find where they hide the cars. I found a few Barbie cars but not a full size car. I even looked at the top of the shelves and nope, no cars. This is ridiculous! As an old lady I can't walk around the damn store all day long! I won't have anything to do with Costco ever again. Why bother????

[@JM-xu3cr]

Did you check the parking lot? There's lots of cars out there and the variety changes constantly. And as a bonus, many of the cars come with a bonus load of groceries in the trunk!

[@pzm2461]

@@JM-xu3cr lol

[@davileett1224]

Just wanted to follow up on this after going through the Costco program. I tried a handful of dealers, and found one to give me $5k off MSRP for a new 4Runner. Went through the Costco program and got $7k off MSRP without having to any negotiating. I am not shy to negotiating at all, but I couldn't find another dealer to even match it after showing them the quote.

[@jeffmill]

Bought two cars through Costco. Great customer support from Costco when a dealer was slow with responding. In addition pre negotiated price beat true car. You nailed it however, as both times the dealer finance department worked extra hard to make up for lost profits. Costco definitely made it a whole lot easier, however. And yes, I'm an educated car buyer. I watch Kevin's channel, have read "Don't Get Taken Every Time" and other books on the subject. Kevin is correct - if you enjoy and are good at haggling, you'll do better than Costco's price, but who enjoys that?

[@johnkraus4]

What's not to like about making a car seller suffer?

[@iptvclub1575]

Hmmm I enjoy saving money.

[@chrissampson7569]

I used the USAA car buying program once and always wondered why the salesman part of the process was smooth and painless (basically he said, "You know what you want and I'm not here to waste your time.") but the financing guy was still trying to waste my time by feeding me a bunch of bullshit like claiming detailing and other dealer services were mandatory charges along with extended warranty and GAP up-sales. He already had them in the contract! I told him to remove them or I was going to walk. He didn't like it, but he did it. I now realize that he wasn't part of the easy car buying process like the start of the sale was. Thanks Kevin!

[@wadeb.5509]

"Most dealers suck at training" That the biggest understatement of the year. Given that this is 2020 that really means something.

[@estebancollazo4883]

"No haggle"? No thanks! I'd never buy a car I couldn't negotiate for.

[@jrs9264]

I once tried it. They sent me to Honda dealer. Dealer said HRV was not eligible. Then offered $1500 off $25k Civic. But, they then offered $2k Under Wholesale for trade. I left. Told Costco what good is discount on new car when the dealer tries to scalp you on trade? Not Costco's fault. Just listen to Kevin about dealers.

[@ChrisLenderman]

Last car I bought, I got pretty far in the process, and decided to give Costco a try on a commodity car that was plentiful (Chrysler Pacifica). When I called the Costco dealer, and told them the price I had already negotiated, they said "we can't even get close to the price you have landed."

[@thethrillofpattaya8404]

***Well...if you bought a Chrysler Pacifica-You got RIPPED OFF no mater what the price(unless you were able to get a 1 year lease @ $200 a month)!***

[@ChrisLenderman]

@@thethrillofpattaya8404 not sure where you're getting your information... given that a current lease for a Pacifica is $370 a month? That said, my monthly payment was not much more than $200, and the vehicle is now paid off. It's been a good vehicle, perhaps by your statement you're trying to say that it's not. What are you driving these days?

[@Scott-bf8km]

@@ChrisLenderman If you check Consumer Reports, the 2020 Chrysler Pacifica currently has the lowest possible reliability rating. In fact, the only Pacifica that doesn't have the lowest rating is the model from 2019.

[@ChrisLenderman]

@@Scott-bf8km so are you trying to make me feel bad about my purchase? What is your point here? My vehicle has been flawless and it's paid for as well.

[@khrfx4715]

I tried to play off several Toyota dealers against each other via email and the best I could do was a 5% discount off the MSRP. I gave up and went with Costco and got a 10.5% discount. I won't waste my time anymore trying to make my own deal. I got the authorized dealer and the names of their COSTCO sales people from COSTCO's website. I called one of the sales people and worked with him and couldn't be happier with the outcome. When I went down to the dealer the car was ready to go. All I had to do was sign and initial lots of papers, write a check and drive away with my new car.

[@ppumpkin3282]

I tried to deal with the dealer. Salesman asked me, what price I wanted to pay. He laughed at me and walked away. Then I went home, got the costco printout, came back to the dealer, saw the same salesman, and he said "you're back", and I said yeah, but I'm not buying from you, I'm buying through the costco program. I don't know why he wouldn't take me seriously before, but having the costco price worked like a charm.

[@SeanManks]

The last time I bought a car & went through this program, the dealer said that they can give me a much better deal & they did. All because it was a quarter ending and they wanted to meet their targets.. so, it was a win win situation for me.

[@ai-baking-f1]

Another great video - you guys rock. I've used the Costco program a few times and been very happy with it. Other than one case I went in with financing from a credit union - even before I'd seen those videos. The only time I did use manufacturer financing it was $0 down and 0% per month for 5 years. I know they made money somewhere, but I was very happy with that deal. Thanks for arming me even more Kevin!!

[@bill7481]

We used information primarily from Truecar for each of the last three vehicle purchases we made. Each time we did better than we would have using the Costco program. There are too many restrictions with the program. Whichever program one uses, however, the key is to go into the dealership with his/her own financing. One should know exactly what the monthly payment, if any, is going to be before setting foot into the dealership.

[@OneManOnFire]

I work as a car salesman. We just ask you are you a current costco member? If the answer is yes we can apply that rebate and show it to you. We also do Costco auto program all year round. We can do the whole Costco signup at the dealership without you having to do it at home and print it out and takes 5 minutes. Some months like October to January 2nd is the best time because we can stack incentives on top of each other to make crazy deals depending on the car. On the flip side during the same time frame I just mentioned, Costco is pointless and we can beat it out with factory incentives depending on the car. We do not know what next months incentives will be so its a guessing game. Even if you're outside of the time frame I mentioned above just be open to colors and be prepared to go father away to get a better deal with a bigger dealer discount.

[@wdamato39]

I purchased a new car under the program. The dealer assured me there was no hidden extended warranty in the contract. When I got home and reviewed the contract , without any sales pressure , I discovered the finance manager folded the 20 inch long contract where it stated a 1500.00 extended warranty. I immediately returned and threatened to revoke ownership. They recast the contract without the extended warranty. Upon complaining to Costco it appeared that they were not really good at complaints. I was supposed to be contacted by the dealership. That never happened and still Costco did nothing but to act surprised. Worst experience I ever had buying a car. Lesson learned ? Never go alone to a dealership because overwhelming the customer with information is a major part of their business model.

[@johnscanlan9335]

I bought a Toyota Prius in 2010 through the program and I saved about $1,500 after spending about 20 minutes on the phone with Costco. It was definitely worth the effort for me!!!

[@TaiChiWithRon]

I went through the Costco program, I got A quote from the dealership. Then I called another dealership about the exact same model of car. The second dealership had a better price, So I went back to the first dealership and they were more than willing to negotiate the Costco price they gave me. We ended up going back-and-forth between dealerships all day, continuing to get a better deal from each dealership. It was an exhausting process but ended up getting a very good deal from the second dealership.

[@ToyotaTom04]

You may be able to get a better deal than the Costco price by negotiation. If the vehicle is sold at a different price it won't be reported to Costco under the program and you would lose any other programs they offer. An example of this is sometimes members are offered $250-500 gift cards from Costco for using the program

[@EnsPulver]

I used this service to buy a new Mazda CX-5 in2018 and the process was pretty painless. I'm probably more trusting of Costco than many, but they haven't let me down yet. I loved not having to negotiate the price and I got the car just like I wanted it. I recommend the service.

[@tech-test-break-fix]

I have used the Costco program 3 times. 2 of the 3 times , the sales reps got me a better deal not using the costco program. In all 3 purchases, the costco sales reps were respectful and very easy to work with.

[@mojozepeda]

The Costco is a fair price not the best price. Plain and simple. The dealership pays Costco a fee based on how many customers buy vehicles.

[@brockbenson6970]

I've worked at multiple dealers, Most places wont even come near costco price without asking for it. and none of them will ever go under that

[@SuppositionalBox]

@@brockbenson6970 Unfortunately, you really have to play the snake to get their prices that low. If you speak directly, as I do, you wont get the really good pricing. In other words, you have to play them at their own game.

[@cessealbeach]

lol

[@PhotonTheta]

I attempted a Costco purchase, but backed out after the saleslady only tried to sell me the model I didn't want. It was a good deal, not a great deal. Costco is usually good at quality bulk sales, so I guess if I was buying a dozen cars of an off model 🙃

[@meatbyproducts]

Sold cars for a while and almost all the sales people hated the Costco program. I liked it as I didn't have to do anything but get them to sign the paperwork.

[@nicksmith8166]

I got $750 off the top of the price of my vehicle when I bought through USAA. I configured and ordered it through them and just used the dealer to sign paperwork and pick up the car when it came from the factory.

[@markw2521]

Top price being the lowest or highest price you could find?

[@KindCountsDeb3773]

USAA is client owned, that might help.

[@dsbennett]

You mentioned the price sheet they are supposed to hand you at the dealership. That wasn't my experience. I told the dealer's Costco man I just wanted to know what the price was for a Honda Accord. He proceeded to take me on the grand tour meeting everyone "in the family" and blah blah blah for 20 minutes or more. Then we sat at the table while he drew up the contract. When he handed me the contract, I said thanks. Now I can see the price. That's what I asked you for, not this whole freaking get to know the family crap. I'm not buying today, I'm still shopping. He looked like he was going to cry. He acted like I had taken his favorite toy. He was astonished I didn't just sign the dotted line. A month later, after I had shopped around, I came back to buy the car, and a different guy got the commission. What do I hate? I hate the salesman who doesn't listen. I say I'm looking for a car around $12,000, so he takes me directly to a $20,000 car. "Well, I thought I would just show you this one." Yeah, and you just lost a customer, jerk! Thanks for the video. Yer the best!

[@GlennLaycock]

I think you were very good with Scott on the phone as he probably took a huge risk agreeing to let you record at your end - unless that is common. He gave really good answers under important conditions and you summarized what he said very well, filling in and tightening up what he said. A very good job over-all. I also appreciated how you showed your skill and knowledge by being kind and respectful and not shaming as often people can do. Skill and knowledge don't need puffing - and you just show both in what you do.

[@ChrisWilliams-vm1do]

I bought a 2021 Subaru Ascent Touring. I went to the dealership expecting to pay about 10 - 12% below MSRP. Went with the Costco deal and got it for 14% below. Plus 0% apr for 63 mo. made for a pretty good deal.

[@leylasantacruz5011]

As soon as I ask you about COTSCO’s deal on buying a car through them I saw and reading Your responses about it I’m sending my THANKS with the entire explanation. 🙏🙏

[@DanLimbach]

I compared the Costco program with Truecar a while back, and Costco was $1,500 higher for a Toyota Camry.

[@Skywalker8562]

Did you get a hardcopy of the Truecar quote, and BTW does Truecar do like Costco and have a customer "pitch a fit" rep you can contact if the dealer doesn't want to give you the Truecar pricing.

[@DanLimbach]

@@Skywalker8562 I had the Truecar quote printed out and in my pocket before I went to the Costco-program dealership. They told me I was going to love the Costco price because it's such a great deal. When I saw it, I pulled out the Truecar quote and they said they could not touch that price. They were not in the Truecar program. I told them I could buy the car in the Truecar quote that day from a dealer 15 minutes away. They let me walk away. They wouldn't budge a dollar on the Costco price. Always pays to do your homework.

[@leekumiega6576]

I also got a better price with Truecar on a MAZDA a few years back.

[@Skywalker8562]

@@leekumiega6576 Does Truecar print out a price quote for you to take to the dealer like Costco does?

[@leekumiega6576]

@@Skywalker8562 you do it all on line and print the results out yourself

[@jamespiroli823]

The best. We just bought a Chevy Traverse here in Tempe and I will never buy a car without Costco. Thank you!!! Saved thousands off the list price. The other dealers played games. We knew the discount as soon as we sat down.

[@a.m.m.4592]

I bought a brand new Toyota Sienna in 2015 through the program in California. Sticker before tax was about 37k. Costco price was 34,870 and I got a 1k cash back rebate from Toyota. With taxes I got the Sienna for $37,419.

[@magellanmax]

From my personal experience with Costco car buying program....the participating dealers and their sales reps avoid these potential customers like the plague! I once signed up for this program and I was assigned to three different sales associates inside one week and none of them provided me with the car price lists as advertised. The dealers and their sales reps want nothing to do with Costco members if they can avoid it. Trust me, and you can thank me later.

[@ppumpkin3282]

I've used Costco car buying before. It used to be easier, I thought getting the price from AAA or Consumer Reports was easier. They print out the cost of the model you want, you take it to the dealer, and say give me this price. That's it.

[@concernedcitizen780]

Buying a car is an art and science. With some effort you can beat Costco’s price. It takes some effort to get a good price but again it takes some work.

[@mimike80]

You cant. Costco auto program alleviates costs past the MSRP. So no commission for the dealership. The dealership will scratch to charge you with paint protectant, vin stickers on your windows, etc; fees that make 0 sense. From there, its up to you to use common sense and say mo that makes no sense I do not want. Thank the finance department in house at the dealership for being in your pockets. Goodluck humans.

[@jimm2442]

Excellent Video Kevin! The information you provide is valuable and appreciated, Thank you! I usually find that the model vehicle I want to buy is not included in Costco's program because it is popular and the dealer has zero problem selling them. For example back in 2016 we purchased a Rav4 Hybrid that was and still is, very popular. We were fully aware that put us at a huge disadvantage for negotiation. It took a while(a lot of phone calls) but it worked out for us. If the vehicle had been on Costco's list that price would have been my starting point on negotiation.

[@rwilliams101]

All depends when you buy. In December, I used Costco auto and bought a 2020 Blazer for 150.00 above GM employees pricing and received a 700.00 gift card to Costco. It all depends on the time of the year. They treated me right. As you asked, you do want to do your home work because, many dealerships are still trying to make the most money but, there are some honest dealerships. I stay with those dealerships. Always have financing set up because, the dealer is going to try to beat it.

[@jeffsynn]

I used the Costco auto program about 6 years ago. Car was a Honda Fit, half cash, half financing. I got into an accident a year later and had to total the car. I didn't take a loss at all, so I figured the price Costco got me must have been decent.

[@michaelAMaccarr]

Every time I go to the Costco program dealership it was usually far away from my NYC home. I am not a negotiator nor do I enjoy negotiating a deal for a car in fact I detest working with a dealership. But my experience when I do car shopping I always find that I always get a better price than Costco without even trying. Every time I try Costco dealership the Costco contact at dealership is sometimes NEVER there and when I do get the correct sales person they always never beat the other dealership prices. Costco informs me when I complain about the long distance to Costco dealership and never giving me a discount Costco response to my concern is “That’s great that I received a better deal than Costco can get for me “ Can you imagine Costco never addressing the long travel to get a price that I could beat without trying closer to my home without Costco help?

[@angelodenegri2039]

I forgot that Costco have a car programa, I will buying a New car in couple months and I am very happy that I found you in the internet and talked about Costco's car program. This is a very help. Thank you the information.

[@NipkowDisk]

I knew exactly what I wanted when I used the Costco Auto Program back in 2017, and I pretty much got it save for the color. My Accord EX-L V-6/6MT coupe is great, and there aren't too many of them around. Just the way I like it.

[@PowerandLuxury]

That is a nice car.Congrats.

[@NipkowDisk]

@@PowerandLuxury Thank you!

[@kermitefrog64]

I buy used cars and take good care of them. My recent purchase was a 2005 Mercury Grand Marquis. I have a 1997 Buick Park Avenue with 240,000 miles. I had a 1990 Chevy Lumina and when I sold it the car had 350,000 miles. Do some research. KZbin has a number of good sites for what to do when purchasing a car. I like the suggestions that are on Scotty Kilmer.

[@jameshoopes6467]

I completely agree. If you’re good at negotiating, you may be able to do better on your own. If, like me, you’re terrible at negotiating, this is a hedge against getting screwed. And also agree, watch yourself in the finance department. So many bad things happen there. I prearranged my loan through my bank. So I saved myself there. Good video!

[@winterphoenix09]

Don’t know about the auto program, but when I bought a Chevy Silverado last December, just being a Costco member got me like a thousand bucks off the price of the truck.

[@elkhunter8664]

I got curious 10 years ago and contacted AAA car buying service for a new car for my wife. Got the quote. It was the sticker price on the window. Let's just say the next communication got kind of ugly. I simply asked " If I walk in and agree to sticker price what do I need you for ? " He went ballistic and yelled that they didn't promise any savings. Pretty funny actually. I just went old school with the dealer and saved $3000.

[@gerry2893]

Not old school but best school IMO. Great job. Think the best way to buy a car is contact a bunch of dealer's and take it from there. It's pretty simple actually and has worked well for me. Costco...?

[@watchersmith806]

Two years ago got held hostage at a dealership by salesman for over an hour along with two other couples while he played the “I’ll talk to the manager” game. I walked out telling him it was ridiculous playing this nonsense. I then emailed the manager asking for equivalent Costco price for the car I test drove. Within half an hour manager emailed back asking when I could come in. Right after work I went in, signed paperwork, and got the best deal for a Camry off lease with 10,000 miles on it. The Costco car I saw had 35k miles on it. I had spent a month looking online prior to this. That is the best thing to do. If you can avoid the sales people playing the age-old games pretending they will ask the manager while you’re trying to negotiate, you will be much better off.

[@KevinHunter]

I received this email (pasted below) from Costco after publishing this video. They say there are a couple factual errors, and you are welcome to consider anything shared in their feedback. However, I do have a few things to say about Costco's "errors" they say are in the video. 1. The information regarding Cars, Trucks, SUV's, Motorcycles, Powersports, and RV's is taken from published Costco sources. 2. 15% parts and service discount for vehicles is noted on the video... not sure why this would even be mentioned. 3. $300 per car fee. This shows up on deals sent to me from all over the country. If the customer doesn't see a $300 charge on their contract, they will still pay, as Costco charges the dealer a participate fee. Either way, the customer pays. 4. The video states Costco doesn't assist with F&I. The email claims they do, while Scott says they don't, and all the evidence from car buyers around the country suggest they don't either. In any event, I wouldn't suggest you think you're "taken care of " when you go to finance. Here's the Costco Email I wanted to reach out to you in regards to the recent video posted on 4/4/2020 titled, “COSTCO AUTO Program: GREAT DEALS FOR CAR BUYERS? Auto Expert: Kevin Hunter -The Homework Guy.” After watching the video we wanted to bring a couple of factual errors that were made on the video. · At 2:30 you claim that Costco Auto Program sells Motorcycles and Powersports. This is inaccurate. Costco Auto Program Authorized Dealers only sell new and used vehicles as well as RVs. · We do offer a 15% parts and service discount for vehicles · At 11:30 you mention that Costco dealers must agree to pay Costco a $300 per car sold fee. This is also inaccurate. Costco Auto Program does not do charge any per car fee. · It is mentioned that Costco does not provide assistance on F&I. This is not completely correct. Costco Auto Program works with our Authorized Dealers to negotiate member pricing on items where it is allowed such as extended warranties, etc. However, as you are probably aware it is against the law in some regions to provide prearranged pricing/discounts on insurance products. Because of these limitations, we are not able to do this in all areas. We hope you will make these corrections to your video as we believe in equipping our members with correct and accurate information. If you would like to discuss the program further, I’d be happy to arrange a phone call, or even an interview in the future. Regards, Darren

[@brownro214]

@Lloyd Bonafide Agree Car Pro authorized dealers are good, but coverage is limited. There are no Car Pro dealers in Georgia for example.

[@memyself1176]

Lloyd Bonafide thank you il will stay away from costco now

[@beckywilliams9953]

@@brownro214 not seeing any in east TN either.

[@r.u.kidding8696]

Thought I would go through Costco and was sent too one of their approved dealerships. Horrible experience, the approved dealership ended up being $1800.00 higher than the dealer I finally bought from. Hummm ! I called Costco so they could explain why their approved dealership was $1800.00 higher. Costco never returned my call.

[@DanLimbach]

They want people to think they are getting a great deal. What they are getting is a system that takes away haggling and negotiation, and locks in a specific profit for the dealer. I'm not a fan of the Costco program, but for people who hate playing the haggling game, and hate doing the necessary research, it might work for them. I'll always put in a couple hours of extra work to save $1,500 or more.

[@r.u.kidding8696]

Dan Limbach Don’t get me wrong, we love Costco. Shop there at least twice a week, however was disappointed in their auto program.

[@gregdavis7316]

Bought a car 3 weeks ago and went to dealership Costco referred to. After dealer incentives their price on one color of the car I wanted was 6k lower than if I had bought it through the Costco program. But only for that color because they had it on the lot for a while (so he said). Other colors would’ve been better with Costco price. I shopped around at 3 other dealers for the make and they couldn’t come close to the first dealers offer. So, like the vid says and you found out, it can be a great program, especially for people who hate shopping around or haggling, but you can get better deals depending on dealer incentives. Also, Costco program doesn’t help with trade ins. Make sure to factor that in, if the new car price is lower but they won’t give as much for your trade in then it may not be a good deal.

[@akarjoo]

I had a similar experience however i took the Costco pricing to a different dealership and they beat the price by $2500

[@gregdavis7316]

Sal Vastola maybe... I’ve taken a couple cars there and they gave me very lowball offers. Granted, the cars were 5+ yrs old and had a couple aftermarket things (sunroof, starter, nav, nothing mechanical) and they tried to say those things lowered the value. Maybe they’d do better if you’re buying from them too? Or if you’re selling a newer high trim level car?

[@wieb72]

When I bought my Yukon XL The dealer flat out said the costco price (which seemed high) then told me he could beat that price. I negotiated what I thought was a fair price but I did drive away and they called me and offered my price over the phone. I am sure they made money but I was happy with it.

[@frankb1]

My experience 26 month after this video was made: In my metro area of 2+ million with five or six Toyota dealerships, there were zero dealerships participating for a Toyota RAV4. I expanded my search to include dealerships 100 miles out and found one that promised $500 below sticker but when I got to see the details the car had $3K in "junk options" (ceramic, seat protection, undercoat, VIN etching, etc.) that couldn't be declined. I love Costco, but I had better luck going through Consumer Reports Car Buying Service - a dealership in my city offering no discount from sticker but only $500 in junk options.

[@KevinHunter]

There really isn't a car buying service out there who can claim to get a big discount for the buyer.

[@walterwillis5351]

Went to Costco for a Jeep Wrangler. Got in contact with the dealer rep at a local Jeep dealer. After discussing options he gave me a price sheet. About that time on a Jeep Wrangler forum I heard about a dealer on the other side of the country (Maryland) that was doing x% below invoice. After I contacted him I got a price that was $3,000 less than the local Costco provided dealer. When I presented this info to him the sale person got all snippy and snotty about it. If he had dropped the price about $1,500 he would have had the sale (would have saved the cost of a road trip). Then I heard about a dealer closer to home in Idaho and ended up buying there for $2,000 less than the Costco price. Pays to shop around some - I did not even have to haggle with either Maryland or Idaho - I presented my list of options and they gave me a price, and it was below invoice.

[@brownro214]

You mentioned other companies with car buying programs. USAA has always used used True Car as their agent. Recently they completely outsourced their car buying program to True Car. Now, when you click on the car buying service link, you get a disclaimer that you are being transferred to an outside web site which is maintained by True Car.

[@joshm3342]

Any difference going directly to TrueCar vs going thru USAA?

[@michaeldavala7572]

Check the internet price before calling Costo. My employer has deals with various manufacturers. The employee price was better than Costo's price but NOT better than the price on the internet.

[@garybolenable]

I bought my 2017 Kia Sedona through the Costco program. I'm not big into negotiating so I think it was a good choice for me. I also got 0% financing through the dealership, so again, I don't have anything to complain about.

[@blakehendrix8697]

Great info as always, thanks! “Most dealers actually suck at training their staff!” Sad but so so true… I can’t count the number of times I’ve been at a dealership and basically giving lessons to some newbie salesman with minimal vehicle knowledge!

[@peterjordan2738]

I agree with the individual who said Oct. is a good time to purchase. Anytime from Oct - Dec. 31. One has to remember that the moment a vehicle is driven off the lot it has already depreciated. So, why would one want to pay the same price for a vehicle in December as compared to January of the same year? It all comes down to having one's ducks in a row knowing the type of vehicle/specific packages, along with financing opportunities. Financing will depend on the auto manufacturer. Remember the days when "0" percent financing did not exist? That is because the manufacturers did NOT have to offer it. Times have indeed changed. Being able to purchase with the best financing will be indicative of one's credit score. So, I would urge all future purchasers to know what their credit score is and how to possibly improve it so that in the near future they would be able to obtain the best financing available. Also, for those cash buyers out there, the dealer is more interested in having one finance a vehicle rather than paying cash. For me it is MOSTLY about the deal and not necessarily the auto. Currently I am searching out 3 vehicles all from 3 different manufacturers. The one with the BEST deal will get my business. Good luck to everyone!

[@teri1272]

Thank you Kevin. I really appreciate All your videos. ALL of your videos are Extremely informative and eye opening. You give consumers a level playing field by teaching us the pitfalls of negotiating a car deal.

[@paulcooper8818]

Not looking for a new vehicle anytime soon but just wanted to say this was an excellent video especially for those that don't like haggling. Many transactions also involve a trade-in which gives the dealer another profit avenue and non-hagglers may be easy marks.

[@jeffzekas]

We tried to use the Costco buying program. The dealer refused to sell at the guaranteed negotiated price. Never again.

[@beastfromtheeast9318]

I bought an Infiniti through Costco and it was a good experience. I would consider it again if I decide to buy a brand new car again.

[@angelof9431]

Costco has, thru their website, advertise the MSRP and the invoice price. THEN they say you'll buy BELOW invoice. The Costco "authorized dealer" wouldn't budge below invoice though, I got the same deal at every other dealership....

[@lustar3232]

"Most dealers actually suck at training their staff". That line had me rolling🤣🤣🤣🤣

[@gmcacadia9973]

In 2018 I used the Costco program to purchase a Silverado 2500HD in CA. Don't think I got any better of a deal on the truck compared to doing it on my own. Not sure at this moment that the salesman was actually trained to do a Costco transaction. No one at Costco advised me of that.

[@stevecrum7912]

I went to the local Costco dealership. They treated me well. There was a set price. I went online and looked at several other dealership web deals and saved 2000.00 buying from one of those. Shop around do your homework. Good luck.

[@tamiami34]

I had a very good experience last year, with the Costco Auto Program. Only one dealer in my area (well, about 30 miles from my home) participated in the program for the vehicle I wanted, a new 2019 Lexus RX 350. I feel like I got a very good price without having to negotiate. I chose to wait almost 4 month for my RX to be manufactured to my specs. All the options I wanted, none that I didn't, except the Moon roof, which was mandatory, in order to get all the other desired options. I appreciated the no-haggling, and again, I believe I got a very good price.

[@khaleesiseales2960]

It's a difference between feel like and know lol after all if you think you got a good deal then mission accomplished.

[@mikeceli]

Dec. 2016 I leased a Chevy Cruze LT w/ driver convenience package, through Costco buying service. Two thousand down, 24 months $ 92 a month INCLUDING TAX & reg, PLUS I got a $ 700 Costco gift card, from Costco.

[@gvs5318]

was looking for a car, contacted COSTCO, they found a dealer across town. I called that dealer, wwas assigned a sales rep, the rep informed the vehicle was on the lot and when to expect me. I was there within 1/2 hour. Upon arrival I was informed the car had been sold but they could order me another and it's only six weeks out and $500 lower in price then MSRP. I asked to see the vehicle with the reply being it had already been driven off the lot. I informed COSTCO of this contact and am still waiting eight months later to hear from COSTCO. As always, buyer beware

[@senorpa0267]

Thanks for the info. I shopped for a Ford eleven months ago and was offered the Costco price. When I said no I was immediately offered a price $1200 lower. I had already assumed I could get a better price than Costco price but what was surprising was how quickly that lower price was offered. I don’t know their motives (monthly quota, low sales numbers, vehicle on the lot for a long time maybe) but whatever the reason, their lowest price was well below the Costco price. I ended up not buying the vehicle because I found out they were making big changes to the 2020 Explorers and I wanted to see the 2020 before I made my choice. I left the dealership wondering if Costco knew how some dealerships were undermining their car buying program and determined never to go that route again.

[@ThinkBeFree99]

It may not bring u the most savings, but an extra $750 to $1000 is worth my time and headaches. Also, if one really wants to get a deal, use the service and then negotiate the same type of vehicle at another dealer and take the best offer

[@XxChicagoGuyXx]

I would love to buy one of your shirts and walk into Dealer when they tell me something i dont like pull out the shirt is that the best you could do 😂😂😂

[@carlhawks2915]

I bought a new Camaro from Costco several years ago. The local dealer was offering me MSRP, and didn't want to negotiate. I found a different dealer, saved thousands off the MSRP, and also got a $700 Costco card. I was satisfied. BTW, I paid cash with no trade-in, so they didn't soak me for any extra money there.

[@kevindsmith10000]

Can you do this for the USAA Car Buying service? Am interested in knowing if this program is good for my use.

[@DELACREMEDELA]

Thank you for this! Because of this video, I reached out to AAA and they are helping me.

[@KevinHunter]

Glad I could help!

[@swn69]

Kevin... I bought a new car when I was 21 years old, after returning from overseas where I was for 3 years. I had NO idea what I was doing and I got burned in every... way... possible. Price. Interest. And Trade. Straight hosed. Since then (after I found out how bad I was burned), I have done my due diligence and negotiated fair prices for all the cars I have purchased. I have paid a bit more, here or there, based on my want of the car and it's availability, but never got burned again. Research is key. And remembering that MSRP is a number that the dealer pulled out of their ass.

[@swn69]

@Tony Wolf Wrong... I came back from overseas after 3+ years. I did 20.