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I’ve navigated the car-buying process four times in my life. Two of those were private sales and the last two were through dealerships. I didn’t have to negotiate on half of those car sales, thanks to buying from my grandmother for my first car — and most recently, a Honda dealership through Costco’s Auto program.
Recently, my husband and I decided to add a new vehicle to our family. Our two kids were outgrowing the space in our Toyota RAV4, especially when we took longer road trips with the dog and luggage.
Dealership Buys Can Be a Headache
Purchasing my pre-owned 2016 RAV4 in 2019 was my first dealership experience and it was frustrating. I called several dealerships that promised specific cars at certain prices, only to find out upon arrival that the cars were no longer available.
Eventually I found this car through a Toyota dealership and had to leave and make some negotiating phone calls to get them to knock another $1,500 off of that price. It was annoying, but I expected it was par for the course when buying a car. The dealership also tried to push a higher loan amount on me instead of allowing me to put down more money. It was a long, tiring day, and I left with mixed feelings about the process.
Could Private Sales Be the Solution?
This time, as I searched for a larger vehicle, I researched Toyota and Honda dealerships, CarMax, Carvana, and private sale prices.
I was leaning toward a 2021 Honda Pilot and wanted to avoid the traditional car dealership experience by visiting a business like CarMax. I realized cars moved quickly at that business when a car I thought I reserved to test drive was gone when I arrived two days later. I didn’t get a call or confirmation that it wasn’t available, of course.
My husband suggested looking into Costco’s Auto Program since we recently purchased a garage door through their third-party partners and had a good experience. And, let’s be honest, “I’m a Costco Fanatic.”
The Costco Auto Program To the Rescue
The Costco Auto Program allows members to browse new and used cars at participating dealerships called “approved dealers.” I logged into the site using my Costco membership number, searched for Honda Pilots, and found options in New York City and New Jersey. After filling out the necessary information, I was quickly contacted by associates from both locations. I decided to test drive a Honda Pilot in New Jersey, ensuring they had another option available just in case. I was hoping to sidestep paying New York City sales tax, but I still wound up having to pay New York State tax on the sale.
Why use Costco’s Auto Program? They do the price haggling for you. They’ve pre-arranged a price with certain dealerships for Costco members like myself.Most of the 2021 pre-owned Honda Pilot prices that I was seeing online were in the $31,000 and up ranges for cars with 40,000 miles. The New Jersey dealer price for this SUV was $27,935 — and I immediately would receive $1,000 off as part of the Costco program.
I drove to New Jersey with my mother-in-law, ready to buy if the car met my expectations. The experience was straightforward and much quicker than my previous dealership encounter. I told them I was there for a car reserved through Costco’s Auto Program, and they pulled up my file. They told me the price and prepped the car for me. The car matched the photos online and I enjoyed the test driving experience, so I decided to buy it.
Buying a Car Through Costco (and What the Process Looks Like)
I didn’t negotiate the price because it was already worked out through Costco. Perhaps I could have tried, but I thought the price was fair.
The dealership asked how much I wanted to put down and presented three financing options based on the loan terms. The process felt simple and stress-free, unlike my previous dealership experience.
They ran my credit report, called my insurance, and reviewed the car’s history with me on the CarFax report and went over all warranties. The salesperson even knocked another $150 more off the price due to a higher personal loan interest rate than expected, ensuring the final number was close to what I anticipated when they showed me numbers earlier in the day.
The entire process took about three hours. I drove my new used car back to New York while my mother-in-law took the Toyota RAV4 back for me. The total cost, including taxes and fees, was around $30,000.
How Much Did Buying a Car at Costco Save Me?
Using the Costco Auto Program saved me at least $4,000 compared to local dealerships — and CarMax prices — for the same vehicle. The experience was efficient and stress-free, making me appreciate Costco’s vetting process, and their partnerships, even more than before.
Knowing that Costco works with select dealerships to partner with gave me confidence in the car-buying process. Additionally the CostcoAuto website says: “As an added member benefit, Costco Auto Program reviews auto purchase agreements for price verification, compliance, and member-support purposes.”
They also offer 50% off parts, service and accessories at the dealership where your car was purchased (from $100 to $200 in savings) if you complete their Costco Member Satisfaction Survey within 30 days of purchase.
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