JALLEN4 wrote:
Costco and the other organizations offering a "car buying" program are simply leveraging their size and cutting themselves into a share of the auto sale. The dealer signs up for the program attempting to add incremental sales they might otherwise lose. Generally, there are some basic pricing guidelines the dealer will agree to and Costco {or others} receives a commission on the sale. The commission is an expense to the dealer and will be recovered in the selling price.
Costco does not receive a commission on the sale.