I used the program in my effort to buy a new car recently. Based on the totality of my experience with the program, the dealerships, etc., I can say unequivocally that the program makes zero effort or commitment to handpick (as they claim) the dealerships it refers you to, makes zero effort or commitment to ensure that your experience is streamlined (as they claim), and makes zero effort or commitment to advocate for you when the dealership will try to take advantage of you at some point in the process of buying the car. If you were thinking that any of these three things was true about the Costco program, you need to look elsewhere.
The Costco auto program essentially acts as an advertising agency that strives to bring middle- and upper-class people to the dealerships it recommends. The program gets a cut of the money or a fee if you end up buying the car. Of course, this in and on itself is not something to complain about as long as they were putting the effort and commitment needed to ensure that your buying experience is as advertised in their website and brochures.
My experience: I first contacted the program in early 2018 when I wanted to purchase a three row SUV. I was interested in the Subaru Ascent that had come out a few months prior. The Costco program sent me to a specific Subaru dealership in my area after they informed me that they had not negotiated yet any price with the dealership for this car. I managed to negotiate a $3000 discount on the particular dealership and managed the same with another Subaru dealership, again in my area. Eventually, I decided to go with the Costco recommended dealership since they were closer to my house. I have bought a car before and the buying process I experienced with the Costco dealership was nothing special. Long story short, they brought the car I ordered three months later and when I went to pick it up, I found out that they had already damaged the front bumper! They wanted to fix the car and still sell it to me as brand new! So, I asked for my deposit back and left. When I talked with the representative at the Costco program, he essentially told me c'est la vie and there is nothing he can do for me (but he will keep a note of my complain).
Frustrated with this experience I put the car buying attempts in my rear-view mirror for a while. When the Kia Telluride was introduced, I decided to go for it. Again, through the Costco program, I was sent to a specific dealership after they informed me that they had not negotiated yet any price with the dealership for this car. I closed an appointment with a Costco-specific car salesman at the dealership for a couple of days later. When I arrived at the dealership with my family, we encountered the most rude, condescending, and as it turned out, clueless car sales consultant I have ever seen. When I complained to the manager of the dealership, they tried to apologize, etc. But the damaged was done for me. I left the dealership and never looked back to Kia. In the emails I exchanged with the Costco program representative, he essentially told me c'est la vie (I assume they kept a note of my complain).
Not learning from my previous experience with the Costco program, I decided to give it a third try. This time I had my eyes on a Dodge Durango. The Costco program said that they had negotiated a specific price for the car I was looking for (but they refused to give me the price outright; I had to go to the dealership to find out). So, I did. I arrived at the dealership which had only three Durangos that were not the trim I was looking for. I said, no problem, I can order one with them and wait for it to come. I asked to see the Costco Member-Only Price Sheet and the sales consultant refused to show it to me unless I committed to buy the car from his dealership. I said, how can I decide and make the commitment without knowing your pricing on the specific model and trim! This circular discussion continued for a while, with the sales consultant also trying to sell me Durangos he could find on other dealerships in the area that had an MSRP way higher than the car I was interested in. I left the dealership without been able to see the Costco Member-Only Price Sheet. I am in the process of complaining to Costco for a third time. But as they say: fool me once, shame on you; fool me twice shame on me; fool me three times, let's face it you are a jerk and I am stupid!
I did end up buying the Durango I was looking for at another dealership (a couple of weeks later) that they had their pricing details online and the whole process was surprisingly with few things to complain about.
Overall, the Costco program does not deserve to be held in high esteem. They use you in order to make money for themselves without putting any effort or commitment to ensure that your experience at the dealerships they send you is as they advertise! read more