GM To Sell Light-Trucks Through Big Box Stores

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Costco Sierra-1500 II

Automotive News is reporting that a deal has been struck to allow full-size GM pickups to be sold through select Costco Warehouse stores. Costco memebers will be eligible for the same discount GM offers to certain supplier employees.

Costco executives expect their members to purchase as many as 5000 Chevy and GMC vehicles (which includes pickups, SUVs, and crossovers) in the two-month period the special program runs.

The Costco Auto Program was started in 1989 and arranges no-haggle pricing on new and certified-used vehicles with participating dealerships on behalf of its members. In 2010, Costco members bought 250,000 vehicles from more than 2,400 dealerships through the program.

Comments

Cool, I guess the crew cabs will be on the Mexican Food aisle....

@ Mark Williams

is this for the states only (or certain areas of the states?)

in Canada well my area (Alberta & BC) you see Ford vechicles for sale in the Costco stores and if you buy a Ford from a Ford dealer and have a valid costco membership Ford will give you another $1000.00 dollars off the vechicle.
So i'm curious if this is unique to the states or is Ford out up in Canada or will the GM be sold right next the Ford?
enquiring minds want to know!
thanks in advance!

i missed your link which i just read after posting, looks like states only, my bad

Albeit in different socioeconomic levels, it looks like Ram/Walmart has competition.

What's next? Toyota's at CVS pharmacy?

Lol!

@Dean, I live in BC, Vancouver island to be exact and have never seen a car for sale in a Costco anywhere on the west coast. What area you in? Curious cause I would like to see what kinda price they would ask for a vehicle?

@ DGLR,

I live in the Fraser Valley area of B.C and Ford advertises if you are a Costco member you get a discount,they have been doing this for over a year now,Ford is a discounted Costco vehicle ,if you are a Costco member you get thousands of dollars off of a Ford,check out the local Ford/Costco adds its well documented.

@ DGLR,

Ford /Costco has been doing this since 2009 !!!

I have seen the adds for $1000 off when you show your card at a Ford dealer. But it sounds like Dean is saying you can buy Ford's in Costco (i.e. walk to Costco drive home in a ford). Maybe I just miss-understood? Its all good :)

I would buy a truck at Costco, then I could haul home a load of Costco hot dogs :)

never even heard of a Costco Store must be a west coast thing?

acctually, you can buy a Toyota from Carmax if I remember correctly

The Canadian Ford/Costco deal is different. It was set up as a promotion through Costco and Ford with a rebate. You cannot buy a Ford through Costco. You get a 1,000 discount if you have a Costco card. When I bought my F150 in the fall of 2010, I got an extra 1,000 off with my Costco card, but the whole deal was done at the Ford dealer.

This raises some interesting problems.
What about problems or refunds, customer complaints, warranty, extended warrantry, and trade ins?

I wonder what kind of discounts they will offer to Costo members?

I wonder if Costco will continue selling plastic ZipLok containers?

@Chevy guy - they are all over North America.
USA sites - http://www.costco.com/warehouse/location.aspx

Costco becomes satelite dealers when Chevy and GM dealers are overstocked with trucks that won't move. This Costco angle saves GM billions by not having to pile on rebates. Costco wins by the added members/foot traffic. Great idea! No haggle pricing is great for the non confrontational buyers that get stressed when car shopping but hagglers can usually get a better deal by negotiating directly with the dealer.

So, to just get "Supplier" pricing which isn't all that great, and that any dealer could probably get you, you go to costco? Well Take it back to Costco when it breaks and save space in the Service departments for people who chose to put their money into local businesses verses a warehouse club.

I heard an unconfirmed report online that Ford was going to start selling their cars and trucks at Dollar General and Big Lots stores. The said that was in response to GM's deal with Costco. I guess no classier big name retailer would take them.....Ford LOSES AGAIN..

@Bob

You lose for exsisting.

Yikes, i thought the RAM/WALMART was crazy, gets its a trend now for trucks and wholesalers to get together and sell trucks. Wierd, i thought only Ford stooped this low with its no profit fleet sales to gain numbers for false advertising. Good grief .

@Bob's Gourmet Chef - you shouldn't of given up your day job at McDonalds.
@Sean - Bob is looking for an assistant chef since his gourmet chef is too big a doofus to take the Big Mac's out of there cuntainers.
You can take turns pushing Bob's Impala and makin vroom vroom sounds.

@Mr_Ed

No no no...You have it all wrong...You know Bob's always comparing Ford to McDonalds, Bob's obviously a Wendys man.

Toyoda is teaming-up with Piggly-Wiggly stores.

Renault-Datsun is partnering with K-Mart.

Makes sense to me. Seems like a good deal all around good for the people looking for GM trucks

Can I buy just one or do they only come in cases of 12?

Does michigan blobs impala qualify as a certified used car??? If it does maybe he can trade it in at Costco for a "high quality" Colorado!!

Reading the comments at the link, it seems that GM salesmen are not happy about it. They claim GM is increasing factory capacity to give Costco the sale and then make the dealers responsible for everything else.

im origionally from Vancouver but live in Calgary, wasnt sure on the Fords for sale in BC but when i walk into a Calgary Costco I always see Ford vehicles parked inside with advertising, never gone up to look and see whats it for i just assumed vehicle was for sale, you can see the all the tickets and stuff on the window that show the options. Im not in the market for a new vehicles currently so never bothered to walk up and see what the scoop was, next time I'm in costcos i will take a closer look!

ps i'm in for the Ban Bob petition !!!

@ Mark Williams - When you took this job did you realize it would involve running a daycare too?

Ok, for a serious comment... I can definitely see the GM dealers having problems with this. I work in the marine industry and i hate big box retailers (academy among others) who sell outboards at huge discounts with employees who have no knowledge about them, set them up incorrectly, and then send the customer to a real dealer with the problems.

"Need a large-item-assist with an 81 POS"

And I'm in for banning anyone who tries to ban me and deny me the right to free speech. what a bunch whiny losers. Now as far as Costgo goes and the selling of GM vehicles it doesn't bother dealerships one bit. You are talking about a possible 5,000 vehicle sales which is a drop in the bucket.

GM dealers already have an agreement with Costgo customers and they are eiligible for the GM Supplier discount plus a $500 dollars gas card on trucks and suvs. Most consumers are not going to go to Costgo to buy their vehicle anyway and will definitely be taking it to a dealer for warranty work or service. The Costgo discount is the same as GM Supplier discount or if your a active member of the Military. Credit union members can get the same discount on GM vehicles. This discount is just below the invoice price of the vehicle and takes the haggeling out of the equation.

The B.S. about GM dealers being "overstocked" and can't move them off the lots is complete B.S. as stated by some ignorant ones on this very site. So to set the record straight the fact that Costgo has some GM trucks to sell at GM supplier pricing doesn't bother any GM dealers. GM dealers already offer this pricing at the dealership and has much better selection and service.

That's right Bob you tell'em how it is all hail Bitchagain Bob

I live in Alberta and got the $ 1000. discount of my last Ford vehicle. You have to go to a Ford dealership though. John Deere has been selling there economy lawn tractors in Lowes and Home Depot stores. The sales people know nothing about the product and the customer has to take it to a John Deere dealership for parts and service. So to save a few dollars you are going to buy your next Chevy from a box boy at Costco. Good luck with that.

I thought they already did this.
Not the discount part but the local costco here has toyota tundras in front of the store. I figured they just got paid from the dealer.

These partnerships have been going on all over the nation. I've seen Fords parked at Big Box stores with a sales rep inside the store taking orders.

I've also seen Tundras parked at Big Box stores with sales reps right outside the store taking orders. In all these cases you take delivery at a local dealerships for the agreed-on price.

In addition, membership in certain affiliated organizations also entitles you to a heavy discount at certain affiliated dealerships.

I got a great deal in 1987 when I bought my 1988 Silverado through the NCOA and took delivery at a local dealership. I bought it for 87% of MSRP (window sticker) plus tax, title, registration and license plate. The dealer kept the hold-back.

During the 70s I even bought a vehicle through the BX and had it delivered overseas in Antwerp, Belgium.

Partnerships like this help sell more vehicles, without the hassles of the dealerships.

I heard Ford was going to offer one free rump Ranger with the purchase of a full size 1999 style 2012 Super Dooty or F-150 at Big Lots this weekend only. Act now while supplies last Ford girlie men.

Al, lol about having to buy them as a 12 pack!
What I wonder is, will we be seeing retailer employees dressed in white belts and shoes?

Do we get free samples?

Happy Birthday to the best brand of cars and trucks made today. Happy Birthday Chevrolet!

@Greg - Old GMC died at 98 years old on June 1, 2009.
New GMC was born shortly there after.
New GM's birthday is June 1 not November 3.

Happy 2nd B-Day Chevy!

@Frank - that would make Obama the daddy and Loius Chevrolet the mommy?

@Bob and his gourmet chef haha you're right man, who would ever want to ban you and your freedom of speech? seems like you're really making the most of it too...

I can't wait to see the happy customers when Costco won't do warranty work and the dealers treat them like second class citizens putting off their repairs to take care of the dealers own customers first. This will end badly for GM.

My union has a deal worked out with Ford for us to buy their vehicles at a nice discount if we buy new. They also have it set up so I get a nice 20% discount off of my Verizon wireless bill each month. And last but not least they run a promotion to become Costco members from time to time and not have to pay for it. Needless to say, companies do this to get more business. As for me I got two out of 3, drive Ford and use Verizon lol.

@Shawn - it is fairly common practice with trade unions and even professional bodies.

Deal will only be offered until January 3rd. I bet you could negotiate the same deal or better on your own.

Tbird,
I don't see how buyers will be treated badly after the sale. You still buy the truck at the GM dealership. It's not like you are buying at Costco. You are just getting a pin number.

http://www.costcoauto.com/gm/default.aspx

GM says they will see 5000 (estimated) more vehicles. Let's see how many they really sell. I bet it will be far less.

@Dave - I'm thinking about trading in my husband's truck for a new Silverado 2013.



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