What you make not know about Costco’s car sales; from Ashely Lutz:
The warehouse retailer sold 400,000 vehicles in 2014, twice as many as in 2008… Customers prefer Costco to traditional car dealerships for one reason: fixed prices.
This means there is none of the notorious haggling or upselling of traditional auto dealers…. Costco also offers deals: One of the most popular models, the 2015 Toyota Highlander, is offered for $4,000 below the recommended manufacturers’ price. It works with an auto-buying service to negotiate the lowest prices.
The retailer has a huge advantage over traditional car dealerships: It doesn’t need to make money from the cars it sells.
Because of other income streams including membership fees, groceries, gas, and apparel, Costco can afford to sell its cars for lower prices than competitors can.
We haven’t bought a car from Costco. Yet.