One man used his Costco membership to save over $11K on a new car. How shoppers are finding alternatives to high prices

Vincent Rives was successful the marketplace for a caller car, but the process felt overwhelming. Car dealerships are notorious for hard-sell techniques and upselling the lawsuit connected everything from tires to level mats.

He was buying for groceries astatine Costco erstwhile a flyer for the Costco Auto Program caught his eye. Could the large savings and lawsuit acquisition you expect from Costco beryllium transferred to buying a car? (1).

• Thanks to Jeff Bezos, you tin present go a landlord for arsenic small arsenic $100 — and no, you don't person to woody with tenants oregon hole freezers. Here's how

• Dave Ramsey warns astir 50% of Americans are making 1 large Social Security mistake — here’s what it is and 3 elemental steps to hole it ASAP

• Robert Kiyosaki says this 1 plus volition surge 400% successful a twelvemonth — and helium begs investors not to miss its ‘explosion’

Costco promised a fixed terms and nary haggling, which could crook a stomach-churning six hr ordeal into an casual 1 hr experience.

It wasn’t conscionable the process that was easier either. Rives ended up going with the 2025 RAV4 hybrid that was listed astatine $48,540, but due to the fact that helium bought done the Costco Auto Program, it lone outgo him $36,720 — a savings of implicit $11,000.

His attack frames a larger inclination successful the automotive world: arsenic prices and monthly payments stay adjacent historical highs, buyers are progressively consenting to research nontraditional paths to debar haggling and unexpected costs. Here’s however buying a car astatine Costco works, and what consumers are doing to find the champion deals.

You can’t locomotion into your section Costco looking for cars connected the apical shelf. Though the retailer is celebrated for purchases successful bulk, it doesn’t really merchantability cars. Instead, the programme is simply a mode for Costco to connection worth to some its members and car dealerships by cutting retired uncertainty for some parties.

This is however it works. Costco members are superior astir buying and redeeming money. When you wage your $65 annually for a Gold Star Membership ($130 per twelvemonth for an Executive Membership), you amusement you’re committed to making Costco your go-to destination for large deals (2).

Costco members are famously loyal, and the institution knows your buying profile. That’s invaluable accusation for a retailer who has to walk ample sums to pull the attraction of idiosyncratic similar you. Armed with this information, Costco goes to section car dealers and offers to beryllium a broker betwixt a high-intent lawsuit (you) connected the information that the woody shaves disconnected immoderate of their nett borderline connected the conveyance (3).

Dealers judge slimmer margins due to the fact that programs similar Costco’s tin present income measurement portion cutting what it costs to find a buyer. With dealerships often spending astir $400 to $800 per conveyance sold connected advertising, a rank referral pipeline tin relation similar a built-in pb root that offsets those selling costs (4).