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Originally Posted by Babubhat
Posted this repeatedly. Yet so many want to make the process harder than it needs to be.
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Quote:
Originally Posted by Villagesgal
We used the Costco auto service to order a Chevy Tahoe from one of their dealers and got exactly what we wanted after a 2 month wait to have it built and paid only 200 over dealer cost, 16,000 less than sticker price. Easiest car buying experience we ever had.
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I was a new Salesman in the Auto business, for the Introduction of the 1973 Model run (August 1972).
It's 50 years later and for the last 25+ years, I've been a Consultant to an Auto Group that owns 19 dealerships.
First off, no one sold anyone a new Chevy Tahoe, for $16,000 under MSRP.. The "Profit Margin" from "Dealer Invoice" to MSRP is about 8%-10%, depending on options. The margin from actual cost to MSRP is 10%-14%, depending on current incentives from the Manufacturer. There are some rare occasions when a Dealer will set a vehicle for a loss, but it's very rare and relates to how Manufacturer Incentive programs work.
Anyone who believes Costco offers the best deal on new vehicles, is smokin' really good stuff. The same with AARP and every other "Buying Service". It's a big joke in the auto business, as the customer is lulled into believing they're getting a "great deal" and in fact, they're getting nothing special.
The same people posting on this thread, about how they shopped all over the universe, are the same people who bought their golf carts in The Villages and paid a $5000 premium to do it.
If you're shopping a for a new car, just exercise some common sense. The best deal isn't always the lowest price ... unless your time, aggravation quotient and patience are valueless.
There's a shortage of new vehicles right now, that's effecting almost all manufacturers. What happened 10 years ago when you bought a car or even 2 years ago, doesn't apply in today's market, unless you're buying a make/model that no one else wants. If you're buying a car in high demand and short supply, you're going to pay.
After 50 on & off years in the industry, I can tell you there are really only 2 truisms about getting a good "deal" when buying a new car (or used) ... buy during Christmas week or buy in the last 2-3 days in any month.