Hi Everyone -

Newbie here, not yet a Fit owner. I'll be one soon enough, just trying to figure out the best way to buy.


Has anyone used Costco's buying service for the Fit? If so how did it go?

Any other buying service experiences to report?

Thanks in advance!

 

I used Costco's car buying service to buy my Fit here in Atlanta. It's a good starting point, but does not absolve the need to negotiate. I registered via Costco's website and was put in touch with the Costco appointed rep at a Honda dealer nearby (Hennessy Honda, Woodstock GA). They would not give any information prior to entering the dealership (this works against the buyer).

They brought out a xerox price list of what they could offer. I had already done my homework; the Costco price was $200 below invoice. This was at the end of "Cash for Clunkers" (alas I had no clunkers to get cash for) so the cars were in high demand. I felt the price was fair, so I said OK. They would put nothing in writing at this stage (take your own notes, bring a calculator).

They then proceeded to quote me the "out-the-door" price with Tax Tag and Administrative (TTA) fees. I had calculated these costs close enough to know their figure was $500 higher than it should have been. Nothing was written down at this point. When I questioned the discrepancy, they said it was their administrative fees ($500). I told them I wasn't willing to pay this. They said they "had" to charge these fees; how else could they pay their office help? I got up and left.

I hadn't reached home before they called me to say they were lowering the price of the car another $500 to compensate for the admin fees (which would still appear on the sales contract). I said ok and bought me a Fit.

In retrospect, it saved time dealing through Costco, but did not save having to deal (haggle).

Oh and after I signed, they brought out the a-la-carte menu of add-ons. Crap, floor pads weren't standard. They wanted $200 installed for carpeted floor pads. I demurred, they didn't budge. So I took delivery without mats and bought them online for $80 from Majestic Honda. Be sure to consider any dealer add-ons before agreeing to buy (floor mats are standard now, I think).

Once you have negotiated the purchase price (with dealer add-ons) you will still negotiate with the finance guy (whether you finance the car or not). Interest rates are negotiable. Be sure to know what rate you can get elsewhere and ask for less than this from Honda. Do not get suckered into buying extended warranties or service contracts. These are always a bad deal. If you must have an extended warranty, these are available from Honda after you buy through online dealers for reasonable amounts. You can purchase the warranty from Honda up until the time the 36K 3Yr warranty expires. Service contracts (with nitrogen!) are a con.

Probably more than you wanted to know.

I'd probably skip Costco next time and just start negotiations from scratch. I probably could have done better on the price if I'd put in the time (how valuable is your time? Do you enjoy the game?)

 

Oh, and a car obsessed Indian co-worker and I have played with TrueCar's buying service. While their published prices may have validity, their "certified dealer network" is a con. It's just a means to give dealers a hot sales lead. My friend tried this and the truecar price was inflated by huge dealer fees ($1,000 in some cases).

No buyer service is a substitute for doing your homework and negotiating carefully.

 

Certainly not more than I wanted to know, it is very useful.

One thing I don't understand...

Why would I have to talk to a finance guy if I don't finance the car?

 

finance guy usually does the spiel for the warranty...

 

yeah, like xxxryu says.

He's really the F&I guy (google it). He's a real salesman who will get you in a small room and make you agree to turn over your first born son in exchange for free oil changes. It's where most dealer profit comes from for new car sales.

Edit: in Hennessy's defense, after 30 seconds of nitrogen pep-talk I said, "can we just cut to the chase." Their F&I guy shut up and got me out quick.

 

It's a starting point- you can pay the Costco fee and, worst-case, you're out the fee, right? Best case is, it's the best deal you can find, or you take that price to another dealer and tell them to beat it by more than the Costco fee.

FWIW a friend and I each bought our Fits (2 years ago) from the internet sales guy at Yonkers Honda, got good prices and there was no BS at all and no selling pressure, the only 'issue' was that after we agreed on a price the bill included the $2/tire tax when I said "It's this price plus sales tax, nothing else, right?" and he said yes. At the time Honda had 0.9% financing so there was no haggling over interest rates.

 

Good to know, Brain.

Were there really no other fees? Not even NYS stuff?

 

Yes, there was sales tax, the aforementioned tire tax, plus the state cost of registration and the fee I chose to pay the dealer (I think there's a legal maximum and they all charge it) for dealing with the DMV, in lieu of my waiting in line at the DMV to register the car (I think they do it on the internet, as a dealer). But no crap I didn't expect, except for the tire tax.

 

When I bought my fit, I asked about the costco price from my dealer; and the quote they gave me for the costco price was higher than the one they were offering themselves.
This was from the internet/fleet sales department of the dealership (not the regular showroom) that work out of a separate detached annex of the dealer and is basically offices and cubicles. I had no hassle or upsale on anything, as I was paying in full and they just pushed through the paperwork.

What you want to do is find the dealer that is the low cost leader with the car you want, and then calling directly to their internet/fleet sales department. The costco lead can point you in the right direction, but as far as my experience doesn't necessarily result in lower price. It looks like brian also gave you first hand advice on that too.


Also note, that the Fit is relatively an inexpensive car. The point is there is not a huge amount of pricing difference that can be had, as compared to a $50,000 car where a couple thousand could be on the table.
There is something to be said to get a pleasant dealer where they don't end up playing tricks and getting the transaction done fast and smoothly (and relatively close to you), even if their quoted price maybe a few dollars more.

 

I bought my 2012 Fit Sport 5AT from Norm Reeves Honda Cerritos using my Costco account for $16,689 (included dest charge) + TTL which was the best price i was able to find anywhere. MSRP on the window was $18,700

 

In 2006 when I bought my first ('07) Fit, the car was so rare and in such high demand that every Honda dealer within a 3-hour drive was demanding a surcharge of between $1000-1500., and some even demanded that I buy overpriced accessories on top of the pricing surcharge. Costco could not get any up-front member discounts on Fits. So I went to the local dealer that was the Costco referral on models where discounts WERE available, and that dealer sold me the Fit at MSRP- $1000-1500 less than all of the other dealers.

As has been previously stated, the Fit market has changed quite a bit since '06, and there isn't much room on this car for discounts. Costco does a good job, but their arranged auto discounts can be beaten with a little effort or a longer drive, but if you need warranty service, that longer drive might not be worth the small price difference in the purchase.