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

Core Insights - Costco's Auto Program offers a fixed price and no haggling, significantly reducing the car buying process from an average of six hours to one hour [2] - The program allows members to save substantial amounts on vehicle purchases, exemplified by a member saving over $11,000 on a 2025 RAV4 hybrid [2] - There is a growing trend among car buyers to seek nontraditional purchasing methods to avoid high prices and unexpected costs [3] Company Operations - Costco does not sell cars directly but acts as a broker between its members and local car dealerships, providing value to both parties by reducing uncertainty [4] - Membership costs $65 annually for a Gold Star Membership and $130 for an Executive Membership, indicating a commitment to shopping at Costco [5] - Costco leverages its knowledge of member shopping profiles to negotiate better deals with local car dealers, which helps in driving sales volume while allowing dealers to accept slimmer profit margins [6] Industry Dynamics - Car dealerships are willing to accept lower profit margins due to the sales volume generated by Costco's program, which also reduces their marketing costs [7] - Dealerships typically spend between $400 to $800 per vehicle on advertising, making Costco's membership referral system an attractive lead source [7]