A man bought a Toyota RAV4 through the Costco Auto Program after seeing it in a small pamphlet. The process, according to Vince Rives (@vincerives) was “easier” and cheaper than going through a dealership. 

Rives posted about the purchase on TikTok on Dec. 22, and since then, his clip has generated over 1.7 million views. In it, he described the entire process and how he’ll “never” buy a car without Costco after getting his car. 

The reason he’ll keep using the Costco Auto Program is that he was able to buy his Toyota RAV4 for $10,000 less than it normally lists for. 

How Does the Costco Auto Program Work?

The Costco Auto Program provides a pre-arranged price for a number of regular and EV vehicles. Costco members can go on the Costco Auto website to locate car dealers. They set the make, model and features they’d like for their vehicle and get matched with participating dealerships that have that car.

Then, Costco works to connect that individual to a local dealership that will honor that price. Typically, these predetermined prices are at or below the manufacturer’s set retail price MSRP. The Costco member doesn’t need to haggle or debate on the price of the car, they simply receive a price sheet that clarifies their total.

From there, the dealer and Costco member work together to confirm the purchase. 

What Are The Pros and Cons of Using Costco Auto Program?

One of the reasons Rives said that using Costco’s Auto Program was significantly better than purchasing a car at a dealership is because car buyers aren’t constantly haggling over an “imaginary price.” 

Car dealerships often prefer in-person or direct haggling, as it can take advantage of the buyer’s lack of knowledge and lead to bigger sales on select vehicles. Bigger sales directly translate to better commission rates for car salesmen. 

Often, car salesmen will have pre-established low rates or “deals” they can offer when haggling. But, they will not offer a buyer those deals immediately.

Costco effectively cuts straight to some of these offers and ensures dealerships are offering low, effective pricing without dealership upselling.

“The Toyota dealer I worked for hated Costco deals [because] they didn’t get good commissions. So… keep using it I guess,” said one viewer.

This program can also help lower stress and anxiety when dealing with car salesman.

“I don’t think you realize how helpful this is to an anxious woman who hates going into a dealership,” one shared.

That’s also a con, however, as many people have gone to dealerships and asked them to honor the Costco Auto Program only to get rejected. This technically conflicts with Costco’s Auto Program terms and conditions, but commenters have run into the issue before. 

One mentioned how Audi dealerships in their area frequently rejected Costco’s pricing despite being part of the program. 

“All Audi dealerships on their website I talked to didn’t want to honor Costco’s price,” one TikTok commenter added. 

Another viewer said that barely any dealerships near them offered any significant deals, only getting $500 off.

“I literally just called last week. Unfortunately there’s only one participating dealer and the discount was a measly $500,” another shared. 

Did Rives Really Save $10,000?

According to some commenters, Rives may be inflating the price difference between a Toyota RAV4 without the Costco program and one purchased while using it. 

As one viewer described, “It’s not that great, [the] $48,000 you threw out is not accurate at all for the market and is incredibly inflated. The savings are nowhere near that dramatic. You’ll get about 1,000-ish off that [vehicle].”

Others said that it’s not even possible for the RAV4 to cost that much. “You’re sitting in a RAV4 Hybrid XLE.They don’t even make them at that high of a price,” One person supplied. “No dealers are marking them up over stickers anymore. I call [expletive] on the sticker being $48,000. Not possible.”

Rives, however, provided proof replying back to a comment that the vehicle was originally $48,540.00. He posted a screenshot of the vehicle’s additional costs and the market adjustment. 

Other commenters also claimed that they received similar price decreases. One viewer supplied that they bought a Tacoma in 2021 for $39,000, a full 39-percent decrease from its original cost. 

”No negotiations necessary. The people at the same Toyota dealer were so mad,” one commenter shared. 

Despite the fact that Rives didn’t post any receipts that directly showed he paid 36,000 for the vehicle, the figure is not out of the ordinary considering other user’s experience with the program. 

Should You Use The Costco Auto Program?

For many viewers, Costco’s Auto Program was a lifesaver that saved them time, energy, and money, effectively undermining some of the biggest stressors with new car purchases. That makes it one method for searching for a new vehicle that may just be worth adding to any search. 

We’ve reached out to Rives via TikTok direct message and Costco via email for comment. We’ll let you know if either party responds. 

@vincerives Costco auto program is a gamechanger @Costco Wholesale #rav4 #cars ♬ original sound – vincerives