The latest auto program from Costco and General Motors looks like a good deal but most car buyers with bad credit probably will not be able to take advantage of it
Buying a Car at Costco?
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The email I received in my inbox the other day from retail giant Costco sounded like a good deal, even for car buyers with bad credit. The message had this to say:
Beginning Oct. 1 through Jan. 2, 2015, the GM Holiday Sales Event gives Costco members GM Supplier Pricing combined with all publicly-available rebates on 17 eligible vehicles from Chevrolet, Cadillac, Buick and GMC making this a treat you can't resist! Plus, complete a member satisfaction survey after purchase to receive:
$600 Costco Cash Card for Executive Members
$400 Costco Cash Card for Gold Star and Business Members
GM Holiday Sales Event
So for credit-challenged car buyers that are Costco members (you can't just join for this offer – you have to have been a Costco member as of September 30, 2014) this should be a good deal.
And with 17 GM vehicles eligible for the program, there must be at least one that would fit the budgets of most buyers with problem credit – especially considering these vehicles are available with supplier pricing minus any publicly-available rebates, right?
Unfortunately, this isn't the case. According to program specifics, the Chevrolet vehicles that qualify are the Equinox, Silverado, Suburban, Tahoe, Traverse and Volt. Cadillac models include the ATS, CTS, ELR and XTS. Buick vehicles include the Enclave and Encore, while GMC models include the Acadia, Sierra, Terrain, Yukon and Yukon XL.
The Cadillac vehicles are obviously too expensive, while GMC models are typically more expensive than their Chevrolet counterparts. That leaves just Chevrolet and Buick.
The least expensive Buick is the $25,085 Encore, while the most affordable Chevrolet models are the Equinox ($25,235) and regular cab Silverado ($26,670). Even at invoice (which is 1.5% below the supplier price) plus fairly hefty consumer rebates, all three vehicles would be too expensive for the average problem credit buyer.
In other words, Costco/GM Holiday Program might be a good deal for buyers looking for a small crossover, midsize luxury SUV or large pickup or SUV, but it doesn't include the most affordable vehicles that Chevrolet has to offer – those most likely to fit the pocketbooks of buyers with credit issues.
The Bottom Line
The Costco GM Holiday Sales Event represents a good deal for car buyers – but, unfortunately, it leaves out those vehicles that most people with bad credit can afford.
One thing that doesn't leave out credit-challenged buyers: Auto Credit Express matches car buyers with credit issues to those dealers that can offer them their best chances for car loan approvals.
So if you're ready to reestablish your car credit, you can begin the process now by filling out our online auto loan application.
