Negotiating auto purchase price thru Costco Auto Program to below dealer invoice? Anyone done this?

[Anonymous]

Hello fellow wheelers and dealers, and those who love negotiating the best price!

I am looking for a new vehicle. Just for kicks I decided to engage in the Costco Auto Buying Program to see what kind of deals they offer. I'd like to share with you the prices I have uncovered. I have inquired about the asking price of several different brands of cars from various dealerships through this program. In general, I've been quoted 8-15K off of MSRP on all of the vehicles. Below is what I've discovered on one such vehicle, a 2021 Volvo XC40. 

1) Non-Costco dealers advertised MSRP: $44,000 - $48,500

2) I emailed the non-Coscto dealers for internet pricing and they said they'd give me a whopping $1,600 off MSRP.

3) Costco Auto Program dealer advertised: $42,500..........(I'll call him CAPD from here on out.).

4) CAPD's instantly reduced MSRP in the email he sent me: $40,500.

5) CAPD's Costco Membership deal: $35,500.

6) Manufacturer's suggested *STARTING* MSRP for this vehicle: $35,700.

7) I found a website that shows that dealer invoice is $34,196. 

https://www.car-buying-strategies.com/dealer-invoice/volvo-xc40-prices.html

The holdback on a Volvo is 1%. Ok, so that's $342. 

Destination charge: $995

8) Formula for determining dealer cost:

dealer invoice + added options + destination charge - holdback = true dealer cost

$34,196 + $3,665 + $995 - $342 = $38,514

($38,856) - 342 = $38,514

But CAPD is offering me $35,500.

9) Ok. First off, does that formula and my math look right? Is this the actual true dealer cost?

10) Secondly, how are dealer incentives and rebates determined? How do I find dealer incentives and dealer rebates from Volvo to the dealer so that I can subract that from the true dealer cost?

11) Lastly, do you think he could be talked down closer to $32K? I'm guessing that with his dealer incentives and rebates, and the price below $33,000, he'd still be making a few bucks. Just a guess.

Comparatively, another quote I received was $37,000 on a 2020 GMC Acadia AT4 through the Costco Auto Buying Program. The MSRP on that vehicle is $46,000.

I'm curious what other's think of these prices and the Costco Auto Buying Program in general? 

Thanks!

P_M_A

[Anonymous]

On another Volvo dealer's website I found the following discounts:

1) - $1,250 off for Costco Members

2) - $2,000 off for Loyalty Customer (Sure! Subract $2,000 more, and I'll be a loyal and happy customer!)

3) - $750 off for dealer allowance on certain models

4) - $1,000 off for affiliate offer on select models for USAA, first responders, healthcare worker, teacher, etc.

TOTAL POTENTIAL DISCOUNTS: $5,000

The above dealer can extend a $5,000 discount for the above various reasons that CAPD did not mention in his $35,500 price. His discounts are listed as:

1) - $2,995 off - savings

2) - $1,000 off limited time discount

3) - $1,250 off for Costco members

TOTAL POTENTIAL DISCOUNTS from CAPD's emailed special: $5245

Looks like they just make up whatever discounts they want and give them a name. Can or will also offer the CAPD $2,000 off loyalty customer discount, and the -$1,000 off for healthcare workers who want to purchase from him?

[Scupra]

The costco pricing is usually not worth it. They hope to get "lay downs" from people who don't want to negotiate. Every so often manufactures will have dealer cash for costco members (audi and volvo recently did this) Just negotiate outside of the costco program.

[ridgebackpilot]

According to my friend who owns a Chevy and Cadillac dealership, the Costco program essentially offers around $1,000 off in addition to dealer and manufacturer discounts and rebates.

Figuring out various discounts, incentives, rebates, and special financing can be very confusing. It can be so complicated that even dealers have trouble figuring out how to apply them to a particular deal. This is especially true since many of them are mutually exclusive, or so dealers will tell you.

When I purchased my new Ford truck last week, I managed to get a 10% dealer discount off MSRP, a $2,500 rebate from Ford, and low-interest financing from Ford Motor Credit. (Ford doesn't participate in the Costco program). Keep negotiating until you're satisfied that you've found all the incentives to which you're entitled!