Costco’s Auto Program partners with car dealerships to help their members access the best quality service and discounts when buying a new car. But is the scheme too good to be true?
In a TikTok video with over 353,000 views, content creator and self-professed “car guy” Jon Monroe (@makingmonroe_) breaks down whether or not using the Costco Auto Program to purchase his Toyota 4Runner was worth the hype.
What are the Costco Auto Program benefits?
Monroe starts of by sharing the benefits of the program.
The first benefit: “Being linked with an assigned [approved] associate at the car dealer,” he says.
Monroe explains that the program provides a list of approved associates at each selected car dealership.
“They require a certification program [with Costco] and they’re familiar with the plan. They’re familiar with the membership incentives. They link you up with a senior seller most likely, and the dealership is familiar with the program,” he adds.
Not only are Costco members set up with high-quality sellers, but Monroe says there are discounts to be had, too.
“There’s also typically a discount baked in that the manufacturer provides a rebate to the dealership from Costco. So you’re typically going to get anywhere from $1,000 to $2,000 right off your invoice just because you went through Costco,” he shares.
A third benefit Monroe mentions is that the program connects Costco members to dealers near them.
He says, “Costco will sign you to dealerships near your Costco location, so that also made it easy for me to find the Toyota dealership that was near my Costco location and approved with the Costco Auto Program. Not all dealerships are approved with the Program across every manufacturer…I went through a [ Toyota] manufacturer that was.”
Monroe also notes that the discount is directly listed on his invoice. He shares a screenshot and writes that his savings were “about $1300” thanks to Costco.
The use of an assigned senior seller also allowed Monroe to negotiate directly with the finance department. This allowed him to bypass working with a junior seller who would have to go through their manager to get to the finance department, effectively lengthening the process.
Is it worth it?
With all of those benefits named, Monroe still issues a warning to practice caution.
“Now with that said, it’s still a car dealership. They’re still not incentivized to work on your behalf, so you do have to negotiate a little bit and pay attention to the agreements that you’re signing to make sure they don’t add excessive fees to the invoice,” he advises.
All in all though, the Monroe says it’s worth it.
“Still worth using, just keep in mind when you’re using it that it’s not 100% foolproof, you still have to pay attention to some things,” he concludes.
@makingmonroe_ Better than the Rotisserie Chicken🐔 #4runner #toyota #costco #costcofinds #carsoftiktok #fyp ♬ original sound – Making Monroe
Users weigh in
In the comments, users shared their reactions to Monroe’s Costco Auto Program savings as well as their own experiences with the program.
“Alright alright, I’ll renew my Costco membership,” one user expressed.
“Used Costco Auto Program to buy my Audi. Great experience,” said a second.
“I did this for my Rav4 Woodland 2024. It saved me about $4,000,” a third user chimed in.
“$1k doc fee?! Holy hell. And I thought the few hundred they try to charge here in KC was high,” a fourth user responded, referring to the $999 documentation fee on Monroe’s shared invoice.
Documentation fees are fees dealerships charge to process paperwork and complete sales, and in some states the fees are capped. In Georgia, there is no legal maximum for how much a dealership can charge for a doc fee.
How does the Costco Auto Program work?
The Costco Auto Program works by streamlining select dealerships who meet their requirements and connecting them to Costo members in their area. The program allows customers to easily search different car models, makes, and their specific specs, features, and safety information through their online Vehicle Research portal.
Costco members then choose a vehicle and the location of a participating dealer in their area by submitting a request. Soon after, an “Authorized Dealer Contact” will contact them to schedule an appointment at the dealership. Members also receive the Authorized Dealer Contact’s information to reach out when they want to.
When the customer meets with the Authorized Dealer Contact, they are given access to a Costco Member-Only Price Sheet. This document shows an “exclusive prearranged price” for their selected vehicle.
While results may vary based on the manufacturer, the make, and the state you live in, many Costco customers testify to the saving power of using the auto program to purchase vehicles.
“Bought my Expedition 10 years ago through this program. Will never buy a car any other way,” one such user declared in the comments of Monroe’s video.
The Daily Dot reached out to Monroe and Costco via email for more information.
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