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Old 10-05-2013, 07:16 PM   #1
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Costco?

Just wondering if any one here has used Costco's services for purchasing a new pickup truck?

We're probably a few months away now from replacing our '98 F-150 with a new rig. Don't mind shopping around a bit, but wonder if a Costco deal might be just as good for finding a reasonable price? (FYI, our last new purchase was an '07 Avalon, found a dealer who beat Costco deal, but it took some searching!)

And, if anyone is curious, we'll be looking for 1/2 ton, 2WD, extended cab with a max tow type package. Most likely a GMC/Chevy or another Ford, either way a big gas V-8, tired of waiting for GM's 4.5 Duramax and not at all interested in F's EcoBoost TT V-6.

Thanks for your opinions!

Cheers, Bill J
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Old 10-05-2013, 07:27 PM   #2
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There is an excellent article on this in the October issue of Consumer Reports
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Old 10-05-2013, 09:21 PM   #3
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There is an excellent article on this in the October issue of Consumer Reports
Thanks, that article kind of got me thinking about this option. Would like to hear some first hand impressions.

Bill J
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Old 10-06-2013, 12:25 PM   #4
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There should be no problem in finding a Ford dealer willing to work from their invoice cost. I believe this would be less than working thru a Costco deal. But, maybe the ease of the contact being set up would be worth it to you.
There are any number of internet forums that can get you an X-Plan PIN that is about 1-1.5% above invoice with no haggling or add-ons. X-Plan is for vendors to Ford or their families/friends and really is not a problem getting one of these PINs.
I also know of at least 2 Ford dealers that will work on less than invoice for new vehicles/new orders, but having a trade would complicate the deal. These dealers will drop-ship just about anywhere.
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Old 10-07-2013, 12:40 PM   #5
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I used Overstock.com to purchase my last two vehicles, including my Tundra pickup truck. You will only find good deals on the vehicles that are not moving well or are being closed out. We found a Toyota dealer about 50 miles away who beat our local dealer by $2000.00. The local dealer didn't believe it until I had them look it up for themselves, then they still wouldn't budge on their price - easiest $2000 I ever made.
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Old 10-07-2013, 02:36 PM   #6
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I tried to use Costco for my last truck purchase, but it didn't work out. The local dealers really didn't care if they sold me a truck - not Costco's fault. One of my local dealers found the truck I wanted out of state, but we couldn't agree on a price. I Googled the VIN, found the truck, contacted the out of state dealer directly, and had the truck delivered to me for almost $4k less than my local dealer wanted.
So, to answer your question, the Costco program is good, but it pays to do your homework, too. Costco didn't work out for me, but I will try them again when it's time to buy my next car.
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Old 10-07-2013, 08:47 PM   #7
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There should be no problem in finding a Ford dealer willing to work from their invoice cost. I believe this would be less than working thru a Costco deal. But, maybe the ease of the contact being set up would be worth it to you.
There are any number of internet forums that can get you an X-Plan PIN that is about 1-1.5% above invoice with no haggling or add-ons. X-Plan is for vendors to Ford or their families/friends and really is not a problem getting one of these PINs.
I also know of at least 2 Ford dealers that will work on less than invoice for new vehicles/new orders, but having a trade would complicate the deal. These dealers will drop-ship just about anywhere.
Joe
I'll have to look for those Internet forums you mention, never heard of X-Plan. Probably won't look towards trading in my '98 F-150, family can use a "work" truck for odd jobs, having owned it for 15 years it's earned it's keep and doesn't have all that much trade in value. I'm definitely willing to travel or have a truck drop shipped if the price is right. Last motorcycle I bought was purchased from a gent in Louisville, has a great vacation doing a fly/ride.
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Old 10-07-2013, 08:50 PM   #8
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Originally Posted by Yarcola View Post
I used Overstock.com to purchase my last two vehicles, including my Tundra pickup truck. You will only find good deals on the vehicles that are not moving well or are being closed out. We found a Toyota dealer about 50 miles away who beat our local dealer by $2000.00. The local dealer didn't believe it until I had them look it up for themselves, then they still wouldn't budge on their price - easiest $2000 I ever made.
Never thought of overstock.com as a source...but I'll be looking for a very specific accessory package and not sure how that might work. Definitely worth checking out...

Thanks!
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Old 10-07-2013, 09:31 PM   #9
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I tried to use Costco for my last truck purchase, but it didn't work out. The local dealers really didn't care if they sold me a truck - not Costco's fault. One of my local dealers found the truck I wanted out of state, but we couldn't agree on a price. I Googled the VIN, found the truck, contacted the out of state dealer directly, and had the truck delivered to me for almost $4k less than my local dealer wanted.
So, to answer your question, the Costco program is good, but it pays to do your homework, too. Costco didn't work out for me, but I will try them again when it's time to buy my next car.
Interesting! And in a way sort of verifies some of my assumptions about Costco not having any leverage over dealers. My understanding is that Costco just has standing agreements with specific dealers in their market area. The idea of googling a VIN hadn't occurred to me, another avenue to explore. I'd really prefer to do local deal, but if I could get exactly the unit we're looking for with a 3 or 4 grand savings...?

Hmm, I wonder how many Ford, or Chevy, or GMC dealers are within 200 miles or so of Seattle?

Thanks!
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Old 10-07-2013, 09:49 PM   #10
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SeabeckS

You can find info on the X-Plan for Fords at thedieselstop.com don't let the name fool you, the X-Plan works for almost all Ford products.

Also FTE.com or fordtruckenthusiasts.com for all kinds of Ford info.

If you want the name of a dealer who will sell below invoice on a new truck order, PM me. He will order anything you want, and arrange for you to pick it up near or at where you want it.

Joe
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Old 10-08-2013, 04:02 AM   #11
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COSTCO

I identified the price I could buy my truck thru COSTCO and then went shopping for a better deal. Salesmen had to beat the price, not just meet it.
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Old 10-09-2013, 10:53 AM   #12
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No, They are too high. We go to the commercial sales on the internet. Pick 3 dealers in your area, get bids from ea one, then play the "he said he'd give me this off" game. Dealers have about $10K room to sell. At 6 PM on the last day of the month, go buy a to-go dinner and walk into the dealer and eat it there. After you get done having a laugh at them sweating, go see the salesman and take your time. They are in a hurry, you aren't. It may take you til 11 PMto get out of the dealership but don't worry, don't hurry and be ready to go to another of the 2 you picked. If you are a Vet you can walk in and get the employee discount from Ford.

Check this out. A FORD logo has 5 letters in it. Why?
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Old 10-09-2013, 11:02 AM   #13
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Never ever trade any vehicle. Dealers make about 30% off you. Where Does the Car Dealer Make Money? - Edmunds.com
Tell them you will take their financing, they make a profit off that also and it gives you another negotiating tool and then you have 3 days to buy off the loan with your cash or another loan such as ours which was 0% at the Credit Union.
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Old 10-09-2013, 04:26 PM   #14
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Never ever trade any vehicle. Dealers make about 30% off you. Where Does the Car Dealer Make Money? - Edmunds.com
Tell them you will take their financing, they make a profit off that also and it gives you another negotiating tool and then you have 3 days to buy off the loan with your cash or another loan such as ours which was 0% at the Credit Union.
Sometimes this is true, but not always. If you are purchasing a new vehicle, many companies are offering trade-in discounts. So, you need to sell your vehicle for at least that much more than what your trade value is. Plus, unless you run the private sale of your vehicle through your dealership, you will have to pay sales tax on the entire vehicle amount instead of just the difference between the sale price and the trade-in price.

So consider the following real-life example that I am working through right now.
  • New vehicle is a 2013 Ford F-150
  • Negotiated Sale Price = $45,000
    • Sale Price includes a $2,000 trade-in bonus that would be lost if I purchased with cash from private sale.
    • If I don't trade, my price is $47,000
  • My current negotiated vehicle Trade-in value is $34,000 and KBB private Sale price is $38,290.
  • Sales Tax on a $45,000 vehicle in ND where I live is 5% ($2,250).
    • $47,000 - $38,000 (say I get $38K for my vehicle) = $9K * 5% = $1,800.
  • So, in order to come out ahead, I would need to sell my vehicle for more than $37,800 ($34,000 + $2,000 Trade-in Bonus that I will not be getting + $1,800 Difference in Sales Tax).
So, this is basically a wash and plus I have to mess with selling the truck verses just getting it all done at the dealer.

I will admit that there are several different scenarios, some that will definitely favor selling the vehicle outright.

But to definitively say that you should "Never trade any vehicle" is a blanket statement that doesn't always work out.

Just sayin
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