Hello All,
I too shop at Costco but here is a word of warning; “if you are allowed to use the Costco offer, you did not do a good enough job negotiating your dealer discount”.
Why? Once you get a deal that is razor thin for the Dealer they will NOT honor the Costco offer as they are too deep under water in the deal to make enough money to cover the card cost.
Bear
And at that point, you move on to the next dealership knowing THAT number the dealer offered you before Costco is still possible and there will be another dealership willing to top that if you try hard enough.
The Costco deal has nothing to do with the dealers profit, not sure why you would think that. This deal is between the the manufacturer and Costco, I doubt any part of the incentive or Costco cash comes out of the dealers pocket
I am not an expert/broker (but highly experienced) and buy-lease 6-7 vehicles per year.
The way I understand it is the Costco card comes out of the advertising money assigned to each car from the manufacturer. So, if you already have that advertising money in your discount, the Costco card will have to be paid out of the dealer profit which is likely already down to nothing.
Bear
Depends on if you’re talking about the quarterly incentive bonus through costco or if you’re talking about the standard costco buying service offer which is basically just a true car deal where the dealer is paying a certain amount for the lead.
The problem is there are two significantly different “costco” offers.
Yeah when I say Costco deal I mean these offers to the customer, ie an extra $1000 incentive or Costco card, we all know the buying service is a joke, mediocre deals at best from what I’ve experienced.
I figured you did, but I’ve seen others talk about Costco in the context of the car buying service, so wanted to clarify.