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Michael Weber
03-03-2010, 2:09 PM
Anyone purchase a car through Sam's Club or know anything about the details of how it works. I was considering using it but am a little leary. Does Sams Club determine the price or is that left to the dealership? For those who have used them or maybe the CostCo equivalent do you feel you got a good price?

Pat Germain
03-03-2010, 2:26 PM
Michael,

I have used the Costco auto buying service. Although, I did not buy a car through them. (My daughter ended up going with a late model, used car.)

The way it works is Costco and Sams have arrangements with dealer fleet sales managers. When you go to the buying service web page, you select what kind of car you would like. The buying service contacts the fleet sales guy at a local dealer who will then contact you. Then you can learn exactly what the dealer has in stock or what he can get for you. When you select a car, the sales manager will give you a non-negotiable price which is probably, but not always, better than you could have negotiated on your own.

Other buying services, such as through USAA, will give the price of the car you want up front.

Personally, I think the buying services are very convenient and a good way to buy a car. As I said, it's possible to negotiate a price even better than when using a buying service. But doing so will require a lot of negotiating and likely putting up with maddeningly slimey sales staff who are lying if their mouths are moving.

Hope this helps.

Mike Henderson
03-03-2010, 2:29 PM
I used the Costco version of the program and was satisfied. That was before the recession. You might be able to negotiate a better price on your own, especially if the vehicle is a slow mover or if sales in general are slow.

In the Costco program, there's a price for each vehicle, take it or leave it. The price was fair in my opinion - it wasn't a "giveway" price and it wasn't a high price.

Mike

Michael Weber
03-03-2010, 5:36 PM
Thanks, Mike and Pat. Very useful info. I may be the worlds worst negotiator so it was of particular interest to me. I looked at the USAA site but I don't qualify for membership.

Pat Germain
03-03-2010, 5:55 PM
Thanks, Mike and Pat. Very useful info. I may be the worlds worst negotiator so it was of particular interest to me. I looked at the USAA site but I don't qualify for membership.

Indeed, buying services are especially helpful for people who don't like to negotiate, or who simply don't have time. Your deal will better than almost everyone else who drives off the lot. Most of those folks think they got a great deal, but were often hosed on their trade-in or raked over the coals with overpriced add-ons. I would recommend avoiding most add-ons unless you really want something. And then, offer the dealer half of what they're asking. Those things are so inflated they will still make money. (Extended warranties, paint protection, fabric protection, credit life, gap insurance, oil change plans, etc.)

Don't be so sure you don't qualify for USAA membership. They loosened up the requirements recently, but apparently have not updated the web page. You can get great rates on insurance and very good banking services through USAA. It's worth a call to find out for sure. There was a USAA rep on CNN last year who said, "If you grandfather served in World War II, you can now qualify for USAA membership."

Pat Germain
03-03-2010, 5:58 PM
Just another option a person may not think of.

The company I work for has a contract with Ford for company cars. Employees are also offered a set discounted price. We contact our HR person to get the needed info.
May be worth checking out before buying a car.

That sounds promising. However, be wary of so-called "employee pricing". A friend of mine has a brother who works for Ford. My friend bought a Ford Escape using employee pricing through his brother. It turned out to be a complete illusion as there was no real discount.

Dave Lehnert
03-03-2010, 6:09 PM
Just another option a person may not think of.

The company I work for has a contract with Ford for company cars. Employees are also offered a set discounted price. We contact our HR person to get the needed info.
May be worth checking out before buying a car.

Matt Meiser
03-03-2010, 9:12 PM
That sounds promising. However, be wary of so-called "employee pricing". A friend of mine has a brother who works for Ford. My friend bought a Ford Escape using employee pricing through his brother. It turned out to be a complete illusion as there was no real discount.

Speaking from my experience buying 4 cars on A and Z plan pricing and helping my wife buy a car on X plan before we were engaged, your friend got ripped off by the dealer. A, X and Z plan pricing are a significantly reduced, non-negotiable price set by Ford. The buyer is still eligible for all rebates The A plan price is printed right on the dealer invoice and I'm under the impression that they are required to show it to you. Z plan is the same price as A while at least 10 years ago X plan was a fixed 3% higher. The only thing negotiable is the price of the trade and those are closely monitored by Ford from what I understand to make sure that dealers aren't hiding a discount in the trade value. I've tried to shop around on trade value and the savings isn't worth the time--a couple hundred bucks at most for hours of wasted time. Any more I just search dealer inventory and go the dealer that has what I want.

A is employees and immediate family. Z is retirees and immediate family. A brother or brother in law qualifies under these. One of my uncles and one of my aunts each bought an Escape/Mariner during cash for clunkers. X is for friends.

I typically can't buy a 1-2 year old comparable used vehicle for more than $1-2K less overall price than a new vehicle by the time rebates, new vs. used financing rates, etc are figured in. In '99 I actually would have paid MORE for a used F-150.

I don't understand or know much about GM's program but did buy a GM truck under a supplier discount and I know the price was non-negotiable.

A lot of companies that you wouldn't think of are auto suppliers and employees may be eligible for a discount. Occasionally one of the dealers around here runs an ad with a list of Ford suppliers and I'm always surprised, but when you think about it it makes sense--for example, UPS.

Walter Plummer
03-03-2010, 10:23 PM
If you are a credit union member ask there. We went in to check on what they would lend us and the associate asked if we wanted them to get it for us. Your tell them what kind of vehicle and options you want and they call the dealers they use and get you a price. We went back a couple of days later and saw the van at the credit union, drove it, and went inside and signed the papers and drove it home. No salesman, no trouble.

Dave Lehnert
03-03-2010, 11:08 PM
That sounds promising. However, be wary of so-called "employee pricing". A friend of mine has a brother who works for Ford. My friend bought a Ford Escape using employee pricing through his brother. It turned out to be a complete illusion as there was no real discount.

The post running out of order is driving me crazy tonight. Like watching jeopardy. Post #6 is an answer to post #7????? Been told by the mods the clock is doing crazy things.

A few at work has used the program and was very happy with the price. And like Matt said the price is printed on the dealer invoice. I purchased my truck from the Ford dealer just down the highway from the transmission plant. The plant closed and that dealer has nothing in stock like he use to. When I got my truck in 97 he must had 500 in stock. Now he has maybe 15-20.
Like everything else you do need to do your homework.

Pat Germain
03-04-2010, 11:29 AM
I think my friend did get ripped off on his Ford Escape. Furthermore, he wanted an all wheel drive version and ended up with a front wheel drive only version. (We know how to check such things. My friend did not.)

I'm wondering if the employee discounts of yesteryear are no longer in affect. My friend bought his Escape recently. I've read elsewhere that the old employee discounts no longer exist. Since I don't work for a manufacturer and don't know anyone who does, I admit I don't know for sure.

Anyway, I stand by my initial statement. Buying a new vehicle through Sam's Club, Costco or USAA is a good way to buy no matter what car you want.

Matt Meiser
03-04-2010, 11:44 AM
I bought my F150 last March. My aunt got her Escape and my uncle got his Mariner in the fall during cash for clunkers. It sounds like the dealer took advantage of him.

Edit: He didn't get a hybrid, did he? Ford usually has a few specialty models that are excluded. For example, at times there was no discount on certain Mustang models. Perhaps the hybrid Escape was excluded.

Pat Germain
03-04-2010, 12:13 PM
I bought my F150 last March. My aunt got her Escape and my uncle got his Mariner in the fall during cash for clunkers. It sounds like the dealer took advantage of him.

Edit: He didn't get a hybrid, did he? Ford usually has a few specialty models that are excluded. For example, at times there was no discount on certain Mustang models. Perhaps the hybrid Escape was excluded.

I think the dealer did take advantage of him. It's not a hybrid Escape. I would imagine the "no discount" policy applies to my dream car: the 2010 Shelby GT500 Mustang.

Matt Meiser
03-04-2010, 1:05 PM
Yep, the GT500 and the Boss 302R are both ineligible as is the Raptor truck. :(

Bryan Morgan
03-04-2010, 9:48 PM
Anyone purchase a car through Sam's Club or know anything about the details of how it works. I was considering using it but am a little leary. Does Sams Club determine the price or is that left to the dealership? For those who have used them or maybe the CostCo equivalent do you feel you got a good price?


I've used AAA and Costco and both times I was told it doesn't matter what you use, you wind up with the same price. You deal with fleet services rather than the normal sales vultures, so that in itself is nice. No pressure at all.

Basically you submit a request through the website and they forward it to your local dealers. Set up an appointment to check out the vehicle. You get there and maybe use your elbows and knees to fight off the sales vultures and head to the fleet department. They've always had a car or two waiting for me when I got there. Drive it around, ask your questions, etc. For me, they pulled out their invoice of what they paid for the car (supposedly) and you paid a couple hundred bucks over that. No pressure at all. Want it or not? I don't think they care because they don't make much off you. I got a $27k sticker car for $22k out the door and a $20k sticker for $17k out the door with an extended warranty and some other stuff. One of my cars I negotiated myself the "old fashoned" way and got a $25k car for $20k out the door so I guess it just depends on your luck and what car model it is. If nothing else, doing without the stress and nonsense is nice when going through fleet services. Usually nicer offices too.

Also, if you can get a print out from Carmax for a quote to buy your car you can take that and use it as a bargaining tool. My last car I traded in they didn't want to give me more than $2500 for it but I whipped out the Carmax quote for $4000 and while they didn't like it, they matched that price.

Bryan Morgan
03-04-2010, 9:52 PM
I've read elsewhere that the old employee discounts no longer exist. Since I don't work for a manufacturer and don't know anyone who does, I admit I don't know for sure.


My mom's husband worked for Chevy forever and previously owned a dealership. A few months ago they both bought new Chevys and he had a discount. Not sure how much but it was quite a bit according to my mother.

Bryan Morgan
03-04-2010, 9:57 PM
Just another option a person may not think of.

The company I work for has a contract with Ford for company cars. Employees are also offered a set discounted price. We contact our HR person to get the needed info.
May be worth checking out before buying a car.

My company did that too with both Ford and Toyota but the prices were never that great unless you wanted a completely stripped out fleet type vehicle. Of course, we did get an extended "try before you buy" deal. "Here, take this F150 for a week. Drive it all you want!" type stuff. :) Occasionally they'd let us "borrow" nicer Lexus cars... of course, this was back when times were good. I doubt we could do that nowdays.