Buying a new car can often feel like navigating a maze filled with confusing jargon, hidden fees, and endless negotiations. Many car buyers dread the traditional dealership experience, and are looking for a better way. I’ve personally purchased four vehicles in my life, two from private sellers and two from dealerships. While half of those experiences were straightforward, thanks to family sales and a recent purchase through Costco’s Auto Program, the others were less than ideal. This led me to explore if there’s a truly better way, specifically wondering: How Good Is The Costco Car Buying Program?
Recently, my family needed a larger vehicle. Our Toyota RAV4, while reliable, was becoming cramped for road trips with two kids, a dog, and luggage. The thought of repeating my previous dealership experience was daunting.
The Frustrating Reality of Dealership Car Buying
My past dealership purchase, a pre-owned 2016 RAV4, highlighted the typical pain points. Despite confirming specific cars and prices over the phone with several dealerships, I faced bait-and-switch tactics upon arrival, with promised vehicles suddenly “unavailable.”
Eventually, I found my RAV4 at a Toyota dealership, but even then, it required stressful negotiations and phone calls to shave off an extra $1,500. The dealership also pressured me to accept a higher loan amount instead of allowing a larger down payment. The entire day was exhausting, leaving me with a sour taste in my mouth about dealership car buying. It seemed like this stressful process was just “par for the course.”
Exploring Alternatives: Could Private Sales or CarMax Be Better?
Seeking a larger vehicle this time around, I considered various options, including Toyota and Honda dealerships, CarMax, Carvana, and private sales. A 2021 Honda Pilot caught my eye, and I initially leaned towards avoiding traditional dealerships by exploring businesses like CarMax. However, my CarMax experience proved equally frustrating. A car I believed I had reserved for a test drive vanished within two days of my scheduled visit, without any prior notification.
It was my husband who suggested the Costco Auto Program. We had recently used Costco’s third-party partners for a garage door installation and had a positive experience. And, truthfully, I am a self-confessed Costco enthusiast, always looking for ways to maximize my membership.
Costco Auto Program: A Streamlined Car Buying Experience
The Costco Auto Program offers members a unique platform to browse both new and used cars at “approved dealers.” Logging into the website with my Costco membership number, I searched for Honda Pilots and found listings in New York City and New Jersey. After submitting my details, I was promptly contacted by associates from dealerships in both locations. I opted to test drive a Honda Pilot in New Jersey, ensuring they had another option available as backup. While my initial hope to avoid New York City sales tax didn’t pan out (I still paid New York State tax), the overall experience was significantly better.
The key advantage of the Costco Auto Program is that they handle the price negotiation for you. Costco pre-arranges pricing with participating dealerships specifically for its members. For the 2021 pre-owned Honda Pilots I had been researching online, prices generally started at $31,000 and climbed upwards for models with around 40,000 miles. The New Jersey dealer, through the Costco program, quoted a price of $27,935 for a comparable SUV. Furthermore, the Costco program included an immediate $1,000 discount. This already answered part of my question: the Costco program seemed to offer immediate savings, but how good is the Costco car buying program overall?
Prepared to purchase if the car met my expectations, I drove to New Jersey with my mother-in-law. The dealership experience was remarkably straightforward and significantly faster than my previous encounters. Upon arrival, I simply stated I was there for a car reserved through the Costco Auto Program. They quickly accessed my file, confirmed the pre-arranged price, and prepared the vehicle for a test drive. The car matched the online description and photos, and the test drive solidified my decision to buy.
The Costco Car Buying Process: Simple and Stress-Free
Because the price was already negotiated by Costco, there was no haggling involved. While I could have attempted to negotiate further, the pre-arranged price felt fair and transparent. The dealership inquired about my down payment preference and presented three financing options based on different loan terms. The entire process felt remarkably simple and stress-free – a stark contrast to my previous dealership ordeal.
They efficiently processed my credit report, contacted my insurance provider, and thoroughly reviewed the car’s history using the CarFax report, clearly explaining all warranty details. The salesperson even proactively reduced the price by an additional $150 due to a slightly higher personal loan interest rate than initially anticipated, ensuring the final figure remained close to the earlier estimates.
The entire car buying process, from arrival to driving off the lot, took approximately three hours. I drove my newly acquired used car back to New York, while my mother-in-law kindly returned my Toyota RAV4 for me. The total cost, including taxes and fees, was approximately $30,000.
Quantifiable Savings and Peace of Mind: Just How Good Is It?
So, how good is the Costco car buying program in terms of savings? Using the Costco Auto Program saved me at least $4,000 compared to prices at local dealerships and CarMax for the same vehicle. Beyond the monetary savings, the efficiency and stress-free nature of the experience were invaluable. It significantly increased my appreciation for Costco’s rigorous vetting process and strategic partnerships.
Knowing that Costco partners with select dealerships provided considerable confidence throughout the car buying journey. Furthermore, the Costco Auto Program website highlights an additional member benefit: “Costco Auto Program reviews auto purchase agreements for price verification, compliance, and member-support purposes.” This added layer of oversight offers peace of mind.
Finally, Costco sweetens the deal by offering 50% off parts, service, and accessories at the purchasing dealership (with savings capped between $100 and $200) upon completion of their Costco Member Satisfaction Survey within 30 days of purchase.
In conclusion, based on my personal experience, the Costco Auto Program is indeed very good. It offers significant savings, a streamlined, transparent process, and peace of mind, making it a highly recommendable option for Costco members in the market for a new or used vehicle. If you’re a Costco member and dread the typical car buying hassle, exploring the Costco Auto Program is definitely worthwhile.
