k7baixo

We've had good luck with the Costco program so we used them for the RDX base we purchased last Sunday. Our price was slightly below invoice and after I completed a very short survey, they sent a 50% off coupon for up to a $200 discount on service/parts/accessories.

We used the same program for my wife's Lexus - similar results, below invoice. I suppose that if one were purchasing a more mainstream car, you could do just as well if not better than Costco.

We also simplified the purchase by not trading in my commuter car, a 2007 Honda Civic Hybrid with 106,000 miles. They were talking in the low/low/low $5000 range so I knew I could be better on my own.

Just for the heck of it, I took the Honda to Carmax on Wed - their offer was $4,500. I put it on Craig's List, braced myself for the onslaught of nonsense but was pleasently surprised: the first person who asked to look at it flaked out two hours before our appt but the second person not only showed up, he purchased it for $7000. We met at the bank yesterday and completed the transaction. It was a very, very, very clean car and he was happy to get it.

ceb

Yes, I can guarantee you that someone (else) has used a car buying service.

ossaguy

I used my Costco card.They told me that they were going to discontinue the program at that dealership in 2015,but said they would let me use on on the 2015 RDX. ( Don't think I believe it...) I just hate negotiating,so it was a way to do it.I got it about 2100.00 off the sticker,so I think it was pretty good.

wildeklave

Using Truecar, BJs, AAA, and Costco is very smart. You get a pre-negotiated price where the dealer makes a little and you get a fair price. Unless you do a lot of research and are a good negotiator you can never win against the dealer that negotiates multiple vehicles a day. They have all the inside information that you don't which is why I prefer these services.

k7baixo

Yep. There was a time when I didn't mind taking the time and effort but now using Costco works for me. It feels like I'm finishing at the same point with a lot less effort. You can find the invoice easily enough to validate Costco's deal.

The dealers here still add a few items (side molding, window tint, door edge protection) and fighting them over those still takes a little effort but that's easier than starting from scratch.

ceb

Those buying services will generally get you a decent - but not great - price. They are good for the consumer who cannot negotiate. Dealerships love these services because they end up making a greater profit with a lot less work.

The TrueCar service gives you the best general price, but USAA will almost always beat the TrueCar price. Accordingly, that means that the TrueCar price isn't the best. And it is easy to beat the USAA price with a bit of haggling.

k7baixo

Invoice w/ shipping, at least according to cars.com, is $33,857.

TC's site has a "Great Price" at less than $34,479 and their "Unusually Low Price" at $33,526. I was a bit over that. There are no TC dealers in Phx though.

ceb - you seem to have done fairly well with your purchase - if you don't my asking, how much under invoice were you?

nist7

Interesting. If these programs were so great I wonder if more people should've be using them. Although I'm not sure if I'll ever buy new when getting my cars.

But yeah trade-ins are definitely rip off. I bought my 06 TL after the dealer only offered the previous owner $5000 (one dealer offered $6000). I got it for $7500 so obviously owners were happy with that (they were asking 8500).

k7baixo

I've wondered that also. When we purchased my wife's Lexus, we spend a bit of time talking to the salesguy about the price. I think it was almost a point of frustration for both of us. He wanted to sell a car but the one we were interested in was more than I wanted to pay and he didn't seem willing to go that low. Not without leverage which I didn't have.

I finally told him that I hadn't done any research and wasn't prepared to purchase a car. That was the truth too. He asked me if we were Costco members and I confirmed that. He explained the program, asked for my Costco card and walked away.

When he returned, he had the car's invoice and the Costco price sheet. We agreed on the price based on the Costco info and then started talking about our trade. For this portion, I was prepared and had several screenshots on an ipad showing the car's value. They went $300 over the KBB excellent value on trade-in on my statement that I would buy a car if they gave me that price.

So, at the end of the day, it's either someone like me who had no real knowledge of these programs, don't trust them anymore than a salesguy's pitch or confidence in ones own ability. I'm sure there's another reason that I didn't mention.

I don't mind if the dealer makes a reasonable profit but I don't want to remove some of the gamesmanship from the process. These services allows me to do this.

Rocket_man

USAA now uses TrueCar, they no longer have their own service. We used it on my wife's new Mini. It only got us $250 off because they car was not in stock. Almost all Mini's are custom ordered. I'll still give it a shot when I buy my next car (probably a TLX) and see what price I can get.

ceb

Yes, but.... They still have "exclusive" discounts on some brands like Mercedes that are far better than the "normal" TrueCar price.

I never complete the TrueCar/USAA/COSTCO process. I get their pricing but never get a dealer to email me with a quote. I use the provided pricing as a baseline for my email negotiations. I only deal with the internet guys who tend to be more flexible.

There are so many variables with pricing that make your head spin. In theory, forums are a great place to get information but there is a tendency to brag about low prices - often much too low. In addition, there are regional variations based on fact (different advertising fees for example) that affect the invoice price (but not MSRP) and the artificial regional variations based upon how stupid the dealers think the customers are in that area.

In order to properly compare deals, each poster would have to post the following:

• MSRP including destination
• Invoice (including destination)
• Negotiated cost before state fees (title, tax, plates etc) but including dealer processing fees
• Maximum allowable state processing fees

Taxes and other fees (i.e. "out the door price") is immaterial because that also varies by state. Dealer processing fees are important because those can generally be negotiated away even if they appear on the final invoice.

Those processing fees are nothing but additional dealer profit. Some (most?) states have a cap on the fees (varying from $99 to $699 - that I know of). I've almost always been able to negotiate those away. The dealer will then reduce the negotiated price of the car by that amount and then show the processing fee on the invoice - that way they can say "we charge everyone a processing fee. See, it is on every signed invoice.

State fees are immaterial because they will always be different. Each state charges different title and plate fees. Sales tax is different for each state and some tax the extire purchase while others only tax the difference between the trade and the new car (in those states, trading a car may make sense).

My last purchase was very convoluted as I was trading in a wrecked (but repaired) car, so my trade was valued lower than normal - but - since I had a diminished value claim, my trade would ultimately be valued accurately with a bit left over so my new car actually cost "less" than the amount on the bill of sale. Confusing? Yes, it was almost like keeping two sets of books to keep everything straight. In the end I got a very good deal on the new car and the dealer got a trade at a good price (with full disclosure - I showed them the car two days after the accident when I decided that it could never be repaired to my liking. I also took it to the dealer's bodyshop so they couldn't complain about the quality of the repair [it was awful] and pre-negotiated the trade-in price).

k7baixo

One suggestion if you find yourself in a similar situation in the future. We had a second-year Mini and the local dealer wasn't discounting at all. I went on one of the Mini forums and found a dealer that was known to offer competitive prices.

I ordered from that dealer and had it shipped from CT to AZ and saved about $1500 over the local dealer in the process. That was also in the days of tight constraints - the local dealer was booked out for months where the CT still had allotments.

Before the Acura purchase, we also considered a C7. The local dealers are adding to the MSRP and aren't honoring supplier discounts. Same strategy - had we moved forward, I would have made a vacation out of it: fly-n-buy in Detroit, drop down to Indy to watch my wife's nephew race in mid-May and then head home.

CybrRdr

We purchased my '09 TSX and '14 RDX online.

We used Edmund's and Costco more for price research. We then emailed the dealers directly and then negotiated the price until we found a dealer that was willing to give us the best deal. Much easier then going to each dealership and haggle with salesman and manager for the price you want.

k7baixo

I didn't know you could find the Costco price without going to a dealer. Care to share how you accomplished that? I'd love to use that next time around. Thanks!!!

CybrRdr

Sure just go to the Costco Auto Program, select the car you want and navigate all the way to "Recommended Price". You then have the option to contact any available dealers listed. Personally that's as far as I go on the site. I just use the Recommended Price as a baseline when emailing dealers directly for a price quote. When I find a dealer that is willing to offer the best OTD price, we close the deal at the dealership. There are 4 Acura dealerships in my area so it's the easiest way to get the best deal. It is much easier then have to drive to each dealership and haggle a price.

BlackDogRDX

I'm having a hard time finding this reccomended price on costco. Could be a brain fart but I even put in a fake email and got to a page that said I would be contacted but still wouldn't give me a price. Tried it with a VW GLI and with an RDX and both say "your member price is not listed here"

CybrRdr

Hmmm works for me. Did you click the orange button that says "Locate Dealer"?

k7baixo

That's what I saw also. I'm not knocking the OP - just trying to learn a new trick!

dawudih

$32500 all day long for 2014's in Texas. I paid $28650 since it was a service loaner with 4000 miles. Came with a 100k warranty too. Cash deal, no trade.

Rocket_man

One other benefit of USAA Car Buying Service is low rate loans. A few months ago the discounted rate on 36 month loan was 0.59%. By the time our car arrived (due to 2 month delay for EPA testing) the 36 month rate was up to 0.89%.

This is the first time I've used them from start to finish. It was pretty easy, just that there wasn't any meaningful discount on the brand new Mini. Their pricing on the RLX was very good. Right now they are not showing a discount on the TLX and I know I can get one on my own. I could still use the process to get the low interest rate loan even if I negotiate a better deal. You just have to buy the car from the dealer they send you to, no matter the negotiated price, and they will give you the discounted rate.

In this case USAA got us $250 off, we got an additional $750 off. BTW the 2015 Mini is a great little car. Surprisingly I like it a lot. I didn't care for the previous generation but the new F56 is a much improved car in every way.

ceb

I had a Mini loaner for two months while my BMW was being repaired. It was a fun car - but - the steep windshield made it impossible to see a traffic light if you pulled up far enough to activate the traffic light sensor.

samx18

I used to think these were great, but here is my experience
Truecar gave me an unusually low price for the RDX AWD with tech package as anything less that $39,060, whereas the quote I got from the dealer directly without starting the negotiation process yet is $37,750 which he seemed willing to negotiate. So clearly it does not seem to work where I live - SoCal.

Rocket_man

Yes it is pretty steep and my wife sits pretty far back. Some owners have installed this...

LightInSight