Costco deal on a Clarity in Southern California- about $18,000 after rebates

What $9500 federal rebate? There's only one AFAIK, and it tops out at $7500.

 

CA rebate is only $1k

You also missed taxes


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Sorry but it didn't sound like that to me. You wrote "9500 federal rebate"... "plus two California rebates...". Maybe $7500 federal rebate plus $2000 California rebate(s) would be a more accurate description? Also, I don't see "options", fees and taxes factored in and I guarantee you they will crank up the price significantly.

You were really lucky to be on the right place at the right time or rather I was at the wrong place at the wrong time, and was a victim of a shameless ripoff.

My case: SoCal, January 2019, 2018 Clarity Touring by Costco Auto: ($37060 MSRP + $2185 dealer installed options + $1690 HondaCare + $1499 extended warranty + $3451.55 sales tax + $895 "US GAP" + $508.75 fees+ $85 "document processing charge"+$30 registration charge )= $47404 - ($ 3000 Costco discount, $0 dealer discount + $7500 Federal rebate + $1500 only one California rebate)= $35404.
Costco Auto "forced" me to do business with this dealer, making me to get an appointment with them as "preferred Costco member". The "options" were mandatory, like the gps tracking device I said I didn't want. I was stupid enough to stick with the Costco "deal" instead of walking out and shopping around on my own. I will not be using Costco Auto to buy a car ever again!

 

I know...

 

They charged you for both HondaCare AND an extended warranty? You got taken for a ride! OMG!! Costco will give you the closest dealer they have an agreement with unless you push and they will give you another one further away.

 

Damn. thats a good price.
ALso keep in mind that you must be paying over 7500 in fed taxes to claim all 7500. I only was able to claim 7300 the year I bought my Clarity because that's all I had to pay for Uncle Trump. Too bad you can't spread that over a couple years like you can with energy efficient home improvements.

 

Remember, if you have IRA savings, you can generate additional taxes by converting IRAs to Roth IRAs. Then you've taken care of the taxes you would have to pay when withdrawing from the regular IRAs and you never have to worry about Required Minimum Distributions from Roth IRAs. That's how we mostly retired people took the full $7,500 tax credit for our Clarity and will do the same for the not-to-be-named compact, sporty BEV we bought in August.

 

@insightman, that's a good idea!

 

You can be creative with the ZIP code to steer toward or away from a given dealer. And while I think they're allowed to ask you to come in to view the price sheet, I know they can give you pricing over the phone and by email, and that was before COVID, now they seem even more willing to do so which is nice. Even when dealing with a supposedly predetermined price, I don't like to set foot in a dealership without a written OTD price on a specific car broken down so I can cross-check the taxes/fees/hidden "extras" myself in the comfort of my living room.

In any case that price in the original post is great, thanks for posting it. The price I just got quoted for through the Costco Auto process here (NorCal/central valley) was ~$2000 higher; still an okay price but I haven't shopped it around yet.

 

Yep... They convinced me that buying through the Costco Auto program would get me a very good deal "without the hassle"... They funneled me to that dealer and I ended ripped off. I kept quiet in shame through all the "Price paid" thread testimonials but I just couldn't help it when I saw Costco deals mentioned again. Maybe I was naive, unlucky, fool or just fell for the villain-on-duty that day... The only thing reconciling me with myself is that at the time the car looked a bit hard to find and I really love it.

 

Based on 2 purchases begun with Costco referrals to their affiliated dealers, the Costco price is not a bad deal but usually not as good as you can get by test driving at the Costco affiliated dealer, learning the Costco price, and then if they won’t go lower, go elsewhere knowing you could always come back if you can’t find a better deal. Usually, you can get an additional reduction of at least $500 to $1,000 or even more if a dealer is hungry for a sale. In my experience in California, this is not hard to do. Just stay away from the salespeople who roam the lots. Instead, use the dealer’s “internet” or “fleet” specialist (nowadays you can usually email them). In my most recent case, after leaving the Costco affiliated dealer, all my Clarity purchase negotiations were done entirely through emails–I only went to the dealer I bought from to sign papers and pick up the car. And never, ever let them add any extras that you don’t want. Just say you’ll go elsewhere if that’s the way they are going to play the game, and be willing to walk if it comes to that (it is a game and at least in California there are plenty of dealers to play with!).

A somewhat unrelated comment. I bought my Clarity in 2019, so maybe it is different now, though I doubt it: Honda and Honda's dealers seem to care less about selling the Clarity model. It’s as if for Honda the Clarity is some sort of purposely low volume experimental test and we who become intrigued by the car are basically guinea pigs. The same goes for Honda service departments (I know more about the Clarity than they do and I know very little!). Based on this experience with Honda, I’d rather go back to Toyota. Still, for 12,000 miles my Clarity has been fine. But I usually keep a new car for 10 years, so 12,000 miles is nothing!

 

Don't beat yourself up. If this is your worst case of getting ripped off in life you're in great shape. We all make mistakes.

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I purchased a 2020 Clarity Touring at Autonation Honda Costa Mesa on 10/20/20. OTD price was $30,500 contact Hazem Achouri, he is a great guy and is easy to work with. Another salesman that will give you the same deal is Alex Vasquez at Norm Reeves Honda Superstore in Huntington Beach. I was able to use a $4500.00 grant from the Clean Vehicle Assistance Program along with the $7500.00 Federal ITC, $1000.00 CVRP, and $1000.00 SCE rebates. I will also be eligible for a $2000.00 charger rebate from the CAP program and a 30% ITC for purchase of the residential charger. Overall this has been a very good buying experience.