Costco - There are, in my opinions, hidden traps for the consumer ; Costco, in my opinion, knows--in advance--that its customers can be deceived into making costly decisions while at the dealer.

Posted on Wednesday, November 17th, 2004 at 12:00am CST by 10f12e8d

Company: Costco - There are, in my opinions, hidden traps for the consumer ; Costco, in my opinion, knows--in advance--that its customers can be deceived into making costly decisions while at the dealer.

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Costco - There are, in my opinions, hidden traps for the consumer ; Costco, in my opinion, knows--in advance--that its customers can be deceived into making costly decisions while at the dealer.

Costco Auto Discount Trap or "I'll Sign Anything."

The Costco Auto Discount Trap or "I'll sign anything, let me out of here."

Costco Auto can be contacted through the following website: Costcoauto.com Consumers use Costco Auto because they believe they can get a discount on autos through that program. In truth, the consumer can get a discount, but there are things consumers must know to safely navigate the deal.

There are, in my opinions, hidden traps for the consumer ; Costco, in my opinion, knows--in advance--that its customers can be deceived into making costly decisions while at the dealer.

In the first place, the discount achieved through Costco Auto can usually be obtained through the dealer. Many dealers have a cushion ranging up to $7,000.00. In other words, in many cases, Costco Auto isn't necessary. The main reason for going to a buying club is to insure that you, the customer, will be given an honest deal. I have purchased cars through my credit union, by comparison, and the deal was far more advantageous, financially, than anything I've seen from Costco Auto, and the dealer selected by the credit union was reputable and honest.

My experience at Phoenix, Arizona's Showcase Honda is an example of what I consider a trap. Costco Auto referred my wife and I to Showcase Honda. We went through the preliminaries of selecting a car and found that the quote given to us by Costco Auto was solid. But--and this is a big one--the dealer offered us an opportunity to save money by financing through Honda at a lower rate,, and the suckers that we are, we took the bait.

My wife works at a hospital, and after the selection process in the show room and hard days work she was exhausted. Having selected a new car, knowing that we have solid credit and having been referred by Costco, we felt we could relax. As with most couples, we planned to arrange for financing, then go out for dinner. Believe it or not, we planned to tell family and friends what a great deal we got through Costco. LOL

Once we entered the finance office, we were hit, in my opinion, by a ton of bricks. I am 66 years old and in all of my experience I have never seen high pressure sales like the one we experienced at Showcase Honda. The salesmen wanted us to purchase add-ons, For example: Low Jack theft protection, warranties, tire protection, GAP insurance, etc. etc. We were confronted by two sales persons working in tandem, there were surveillance cameras, people shouting, shoving papers in front of us, demanding that we sign, the kitchen sink. Finally, my wife yelled, "I'll sign anything, let me out of here!"

I couldn't believe what was happening, and I tried to explain that we were referred by Costco Auto. We were told that if we signed the papers, we could cancel within 30 days. I signed. When we went back --a week later-- to cancel we waited for 4 hours, and in the end we were laughed at.

My complaint is this: Costco Atuo should take care when selecting dealers. The consumer can check Complaint.com and see that another person felt that he was cheated by Showcase Honda. How, then, in light of a long standing complaint, placed on a national board, can Costco Auto refer its customers to the same dealer?

In closing, I want to thank Complaints.com for this service. I went to Better Business Bureau and was referred back to the Auto Association.

Jonathan g

jonathan g

Click this link to e-mail the above consumer: COMPLAINTS.COM_FORM_MAIL_69470# Consumer


4 Comments

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e7cb2445, 2009-02-10, 02:50PM CST

You can only blame yourself for being pressured into signing. As far as them laughing at you when you went to cancel try another going to another dealership to cancel. Usually they will be more then happy to assist to appear as the "Good Dealership" for your next purchase. Read the details listed in the contract for the LoJack, extended warranty ect. We just purchased a new Toyota and the cancellation policy is clearly listed.

2ec1c6fc, 2009-07-25, 03:49PM CDT

From your description, which I do not doubt, you were treated in an abusive discourteous fashion. My only real bad and unprofessional experinece when car buying was also with a Honda dealer in the Phoenix area. Honda seem to either not care or actually encourage this kind of treatment. All you can do as a consumer is get rid of the car so you will never have to go into another Honda dealer ever. I did just that even though it cost me when that same day I made that decision, but every time I looked at that car it reminded be of my own stupidity in allowing myself to be browbeaten and lied to by Honda. In the long run I made the best decision to get it over with and move on. I learned the expensive way not to buy Honda. Hope others reading this will not even think about visiting a Honda Dealer

jonathan G., 2010-02-14, 12:12PM CST

Whose blaming who? I'm merely relating an experience that actually happened, and should not have happened.

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Somehow, surprise-surprise, you've missed the point. I signed, knowing that I could go back. That fact doesn't explain the treatment, on the spot, I received during the cancellation process.

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Plus, your post changes the subject. The complaint is not against Show Case Honda, it's against Costco. it's against referring customers to a dealer that engages in such practices.

a7f566bb, 2010-04-29, 01:53AM CDT

This information was very helpful. Shame on costco and Showcase Honda. I won't be using either

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