Costco Connection - March 2005

Costco takes the hassle out of buying a new car
BY WILL FIFIELD

Getting a good deal on a new car can This feature offers reviews and road-test be confusing and stressful, even if articles, details on leasing versus buying, a you’ve done your homework. It’s loan and finance calculator and tools to help often a complicated process: There’s members estimate trade-in values. the purchase price, financing and maybe a After he studied the vehicle and his local trade-in. You have to figure in dealer incen- market, Kochel called Costco’s Auto Program. tives, such as cash rebates and other entice- He received the name of the local participat-ments from manufacturers. ing dealerships and set up an appointment

Then, you face the finance manager, who with one of the authorized dealers. is adept at countering all your Before meeting with the arguments and wants to sell “_It _took _very _littledealer, Kochel set up financ- _cars _on _his _terms—at _a _{higher ing} _for _the _new _car _throughprice than you planned and at time to complete Costco’s Auto Financing & an interest rate over which you Refinancing Program. The have no control. the deal ... compared process was painless, Kochel

However, Costco mem- says. He filled out an appli-bers have two very effective ^with ^other ^experiencescation online and was con-tools available to help put _I’ve _had _buying _cars,tacted about 15 minutes later them in the driver’s seat when with an approval.

buying a new car. this was as easy as Here’s how the financ-

Five steps to a great car deal

Costco members in the market for new

vehicles can use Costco’s Auto and Auto

Financing & Refinancing programs to

save money. Here’s how.

1. Apply at costco.com for a loan with

Costco’s Auto Financing & Refinancing

program. (This program helps members

finance new and used vehicles,

including motorcycles.)

2. Call Costco’s Auto Program at 1-800-

800-9288 to locate a participating

dealer near you.

3. Meet with the authorized Costco

contact at the participating dealership.

4. Select a car and purchase it with a

Blank Check from Capital One

Auto Finance.

5. Drive away happy!

The first is Costco’s Auto ing program works. Once Program, which allows mem- ^buying ^a ^can ^of ^soup.” approved, members receive bers to get rock-bottom pric- a Blank Check^®from Capital ing on vehicles at more than ^—James ^KochelOne Auto Finance within had buying cars, this was as easy as buying a

2,000 participating dealer- three to five business days can of soup.” ships. The second is Costco’s Auto Financing (for an additional $15 charge, it can be sent “With rates as low as 3. 8 percent APR, it’s

& Refinancing Program, which offers dis- overnight). The Blank Check locks in the notsurprising Mr. Kochelsaved money,” says counted loan rates through Capital One rate for 45 days, but members are not oblig- John Lees, director of Costco’s Auto and Auto

Auto Finance^®. ated to use it. Financing & Refinancing programs.

These two programs helped James Kochel Armed with his Blank Check and knowl- John adds two important notes about of Missoula, Montana, get a low purchase edge of the market value for a new Honda Costco’s Auto Program. First, it’s important price and lock in a favorable loan rate when he Element, Kochel, a locomotive engineer for that members deal with the right person at the recently purchased a new Honda Element. Montana Rail Link, went to the dealer and dealership. “Make sure you make an appoint-

First, Kochel determined the market value made the purchase. He says he thinks the ment with the Costco-authorized contact,” he of the vehicle he wanted through the Costco Auto Program ended up saving him about says. “He or she is the only one at the dealer-Auto Program’s “Car Research” feature. $4,000 on the purchase price. ship who can get you the Costco price.”

CONNECTING

To learn more about Costco’s Auto Program, which is available to all members, call 1-800- 800-9288. For the best financing and refinancing rates, visit costco.com, select “Services” and then “Auto Financing & Refinancing.”

And the rate he was offered through the Second, the amount a member saves program was lower than the rate the dealer- depends on the make and model purchased.

ship could offer, so he saved “a significant “Members will realize significant sav-chunk of change” on the loan. ings through both programs,” says John.