General Motors and Costco know that if a 60-day sales drive is good, a 90-day is better. On Jan. 2, GM ended a 90-day sales promotion with the Costco Auto Program that produced 15,200 new vehicle sales, which was three times more sales than when the duo ran a 60-day promotion one year earlier. Buick, Chevrolet and GMC vehicles were involved in both promotions.
Forty percent of Costco members were first-timers
Survey data collected during the most recent Costco Auto Program promotion with GM revealed that 40 percent of Costco members who bought a vehicle were first-time owners of either a Buick, Chevrolet or GMC.
While Costco has conducted other 60-day sales drives with other automakers, none have proven to be as successful as the one with GM. Costco Auto President Gina Paolino noted that the 90-day program may be the new model going forward. That extra month allows for additional advertising time to boost marketing momentum, as the sales numbers suggest.
“There are reasons to do 60-day promos and we’ve done a lot of 60-day promos, but I think we are looking toward more 90-day,” Paolino said. “Our first 90-day promo was with Subaru. We were projecting sales of 6,100 and we sold over 10,000. Having the extra 30 days really helps out.”
Last GM-Costco deal began Oct. 2
The recently expired 90-day promotion between Costco Auto and General Motors began on Oct. 2. Costco members could buy certain Buick, Chevrolet and GMC vehicles through select franchised dealers, at a no-haggle “preferred price” that was approximately when a dealer would offer employees of suppliers. These low prices could then be combined with GM rebates and incentives as eligible. Costco members who completed a survey about their purchase received a $500 Costco Cash Card for their trouble.
Many new vehicles eligible
Vehicles that made their first appearance in the Costco Auto Program included 2012 and 2013 Buick Enclave, LaCross and Verano; Chevrolet Camaro (ZL1 model excluded), Cruze, Equinox, Malibu, Silverado and Traverse; and GMC Acadia, Sierra and Terrain, according to Automotive News.
Sales leads from the Costco Auto Program translated at roughly an 80 percent clip, which was particularly enjoyable for affiliate dealerships.
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