Costco Launches Used Car Buying ProgramApril 15th, 2009
For nearly 20 years, Costco has been offering their New Car Auto Program which arranges no-haggle prices with local dealers on behalf of their members. There is no fee for the program but dealers get charged several hundred dollars if they sell a car through the service. Most cars are priced near the invoice price (take or minus $500).
Now Costco has added certified used cars to the program. Customers will be able to purchase a certified used car at a no-haggle, pre-negotiated price. Costco says the prices will be below the dealership’s lowest advertised price.
We looked into the Costco Auto Program in the past, and while it’s true they provide no-haggle prices, you’re still usually better off using the RealCarTip’s Car Buying Method.
If you’d rather not spend a few hours doing research and negotiating, then the Costco Auto Program might be a good choice (at least it’s better than blindly walking into a dealership). But for those who truly want to save the most money, we advise against buying a Certified Used Car. The prices are usually jacked up. You’re better off buying a used car from a private party and buying an extended warranty. Just our two cents.