Costco Connection - April 2010

inside costco

Car buying the pleasant way

Costco’s Auto Program takes the angst out of buying a new car

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By Steve Fisher

THERE’S ONE THING everyone agrees on: Buying a car is one of the most frustrating experiences in the consumer universe. Until they try the Costco Auto Program (CAP).

Personal experiences

“I’ve bought cars before where you negotiate and the guy goes into the back room to talk to someone and it’s just nonsense,” says Cincinnati, Ohio, Costco member Mort Nicholson of his pre-CAP transactions.

Debbie Elliott, a Costco member from Atlanta, Georgia, loved how CAP worked.

“I hate negotiating for cars. It’s the most
unpleasant experience in the whole world,”
she says. “And this time it was ‘Here’s the car
you’re looking at, here’s the price you pay as a
Costco member and here’s the deal.’ And it
was done. It was amazing.”
It was also “unbelievably easy,” Elliott
enthusiastically reports. “In the evening I
sent an e-mail, somebody called me back the
next morning and I made an appointment.
The whole thing was really fast.

“I wasn’t really planning on buying a car
the night I went in, and I walked out with a car.
And they weren’t pushy. They weren’t doing
anything to try to sway me into buying.”
In the past 10 years, CAP has helped
more than 2 million Costco members find
great deals on their vehicle purchases.

The Costco Auto Program features:

•Low, prearranged Costco member pricing with no haggling

•More than 2,200 participating dealer-
ships, with specially trained Authorized
Dealer Contacts

dealer and asked about the Costco Auto Program. The dealership said they’d give him the Costco price, but they weren’t actually part of the program. Luckily, Nicholson realized his error and did it the right way.

“Any dealer will say they’ll give you the
Costco price,” John admonishes. “But only a
participating CAP dealer has access to the
member-only, prearranged pricing.”
Both Elliott and Nicholson say, unequiv-
ocally, that they would use the Costco Auto
Program again. Nearly all members do. C

Doing it the right way

To use the Costco Auto Program, call 1-800-800-9288 or visit Costco.com and enter “GR8VALU” in the search box to locate a participating dealer in your area. After providing some basic information, you will receive contact information for the Authorized Dealer Contact, who will meet you at the dealership and help you select a vehicle. You will be shown a Costco member-only price sheet and the vehicle manufacturer’s invoice and suggested retail price to immediately see the savings the program provides.

John Gleason, manager of the program,
cautions, “The Costco Auto Program works
with a select group of participating dealers.
You must find a dealer through the program
to get the true Costco member benefit.”
Nicholson concurs. “We tried to use the
[Costco Auto] Program in 2005 and [the
dealer] said they’d give us $50,” he says. “But
in the end I realized I didn’t do it correctly.”
He had walked into a neighborhood

See more automotive stories beginning on page 24.

Note: The manufacturer’s invoice is not shown in all states, based on state laws. Factory invoice may not reflect the dealer’s actual cost for a vehicle. The invoice may be higher than the true final cost to the dealer. Factors that may affect the dealer’s actual cost include, but are not limited to, holdback, factory-to-dealer incentives, advertising fees, reserves and other charges, which may vary by vehicle. Program details vary in Texas.