Costco Auto: Everything You Need To Know (2024)

Costco Auto: Everything You Need To Know (1)

Are you a member of the Costco wholesale club? Did you know it has a program called Costco Auto that allows its members to get great deals on cars? This program has been helping customers purchase vehicles since 1989. Although Costco itself doesn't sell cars, it does connect people to more than 3000 dealerships across the country. This network has allowed the company to become one of the top three sellers of automobiles in the United States. As a member, you'll have access to both new and used vehicles from many dealerships.

What Is Costco Auto All About?

If you choose to use Costco Auto to buy your next vehicle, you'll be connected to participating dealerships offering discounts on new cars, trucks, SUVs, and vans. Costco vets all dealerships and the salespeople they're associated with to ensure members feel confident about their vehicle purchases. The wholesaler doesn't want anyone to feel tricked or to blame them for getting a bad deal. All dealerships must allow their employees to be trained to properly interact with referred Costco customers.

Once trained, these employees are considered Authorized Dealer Contacts. They will be expected to treat all referred customers with respect and to honor Costco's price agreement. These employees, says Business Insider, are required to have worked at their respective dealerships for at least six months and will be evaluated regularly based on their customer satisfaction scores. Occasionally, Costco employees are disguised as hidden shoppers to ensure that dealers are representing Costco appropriately. If not, they can be released from the program.

Buying a Car Through Costco Auto

To find the perfect vehicle, start by searching the inventory on the Costco Auto Program website. Even though you ultimately buy the car through a dealership, you want to go through Costco to get extra savings that are only available to its members. Additional features you can take advantage of through the program include a 'Build A Vehicle' function and research tools that let you:

  • Compare vehicles
  • Read reviews and see road test results
  • View safety information
  • Use a finance calculator
  • See available rebates and incentives
  • Compare leasing to buying

One of the best parts of buying through Costco Auto is you don't need to haggle over price. The prices are already negotiated for you. You can't view the final price on Costco's website; however, once you've made your decision, you can see the Costco member-only price sheet for the vehicle you want. It will break down the:

  • Prearranged price
  • Savings
  • Rebates
  • Costs incurred

If you go through all the steps of buying a car through Costco Auto and find you're not happy with the deal, you can always walk away. If you don't want to buy a car online, you can call the Costco call center and talk to a representative who will walk you through the process over the phone. Then, you'll receive the dealer's contact information so you can set up an appointment.

Make sure you fill out the member satisfaction survey. This will save you 50 percent on things such as parts, accessories, and services at the dealership you buy the car from.

Benefits of Using Costco Auto

One of the biggest benefits of buying through Costco Auto, reveals Autolist, is the variety of options available to you. You're able to buy:

  • Cars
  • SUVs
  • Trucks
  • Vans
  • RVs
  • ATVs
  • UTVs
  • Jet skis

These vehicles are from major brands such as Honda and Ford. Additionally, you can get used vehicles that have gone through inspections and repairs. This includes both factory-certified and select pre-owned vehicles, which usually come with an extended warranty and other benefits for the buyer. You might also be eligible for discounts on accessories for your vehicle as well as on services such as oil changes.

Other savings opportunities, such as incentives and specials, are another bonus of using this program. Retailers and automakers sometimes team up to bring you limited-time specials, and Costco does this whenever possible to help its customers get the best deals. According to Clark, these deals are available for about 60 days and can save you thousands of dollars.

Another way this program helps you save is through incentives from manufacturers. These savings will be tied to the specific vehicle you want to purchase. An example of this type of incentive is a deal where the BMW 3 Series was offered with a $1000 discount to anyone who had graduated in the past year or was going to graduate soon. Other incentive examples include those for special lease terms along with other discounts.

Other Questions and Concerns about Costco Auto

If you're considering taking advantage of the Costco Auto program, there are some things to think about:

  • Is it worth the savings to become a Costco member?
  • Do you dislike haggling over the price of a vehicle?
  • Are you confident that the discounts offered through the program are good enough for you to skip doing your own research?

Typically, a Costco membership costs around $60. This is a small price when compared to the cost of a brand-new or even a pre-owned vehicle. If you feel like you're too busy or inexperienced to haggle over the price of your vehicle, the Costco Auto program is perfect for you. Dealerships pay a monthly fee to Costco to have access to their large customer base, so Costco isn't loyal to any particular dealership. The company's loyalty lies in finding you a great deal.

A Member Advocacy Group is available to answer your questions and to help you get the best deal by periodically offering coupons or other sales events. Investopedia tells us you can go to this group if you feel as though you've been treated unfairly by the dealership or salespeople.

To help you decide whether the Costco Auto Program is right for you, try reading some reviews about other members' experiences. You can also consult with the Member Advocacy Group to ask them questions or share your concerns.

Sources:

https://www.businessinsider.com/costco-car-buying-program-vs-buying-at-a-dealership-2018-3

https://www.autolist.com/guides/costco-auto-program

https://clark.com/cars/costco-auto-program-review/

https://www.investopedia.com/articles/investing/030916/what-costcos-auto-program-cost.asp

https://www.costcoauto.com/enterzipcode.aspx?gotourl=%2f

https://www.caranddriver.com/features/a16577828/extended-car-warranties-peace-of-mind-or-something-else-feature/

https://www.caranddriver.com/bmw/3-series

Costco Auto: Everything You Need To Know (2024)

FAQs

How much money do you save with the Costco Auto Program? ›

The Costco Auto Program offers preset membership pricing for new and used automobiles, plus RVs, at a number of dealerships around the country. On average, the retailer claims, customers can save about $1,000 off a vehicle purchase, though that will ultimately depend on the customer's car choice and the dealer.

Is there an advantage buying a car through Costco? ›

Costco Auto Program provides you with prearranged pricing to help you save on your next vehicle 365 days a year. However, additional savings opportunities are stackable with your Costco member prearranged price: Manufacturer incentives provide qualified buyers with additional savings directly from the manufacturer.

What is the Costco Auto Program? ›

Costco offers its members discounts on new and pre-owned car purchases through an affiliate network of carmakers and dealerships. 1. The idea is to offer car buyers a haggle-free experience while also getting preferred pricing.

Is it worth it to use a car buying service? ›

Hire a reputable car-buying service

For individuals who want to avoid the hassles of shopping for their next vehicle, professional car-buying services can not only save them time, but, potentially, thousands of dollars.

Is Costco auto insurance really cheaper? ›

Costco car insurance is cheaper on average, coming in at $534 for a six-month policy versus the national average of $880. Remember that this is subject to a variety of factors so your rates may well be different.

How much do you have to spend at Costco to make it worth it? ›

But if your annual spend regularly tops $3,250, you're better off with the Executive Membership. Every additional dollar you spend after $3,250 will bring your annual fee further and further below $65 and end up saving you money in the long run.

Why are Costco cars so cheap? ›

Ultimately, the Costco Auto Program is a way for dealerships to generate sales leads. Dealers pay Costco when they make a sale from the program. That's not to say that you won't get a good deal, but this isn't entirely a member perk -- it's also designed to be an additional revenue stream for Costco.

Can someone else use your Costco cars? ›

Sharing your membership card is specifically against the rules of said membership. Costco is well within its rights to revoke that membership if you break the rules.

Is the AARP car buying program worth it? ›

The average savings off MSRP for new car buyers who used the AARP Auto Buying Program was $1,878 in 2021. Get instant access to members-only products and hundreds of discounts, a free second membership, and a subscription to AARP the Magazine. Find out how much you could save in a year with a membership.

Does Costco install car batteries? ›

Bottom Line. The next time you are at Costco, do not forget that they do not offer car battery installation service. Buy the car battery from Costco at a discounted rate, and they will help direct you to locations where battery installations are done at competitive prices.

How does Costco auto renewal work? ›

Costco members may charge their membership fees automatically on any Visa® credit/debit card or Mastercard debit card. The card you set up for Auto Renewal will be charged on the first day of your renewal month.

How does Costco car lease work? ›

You pay a portion of the vehicle's original value – the part “used” during the leasing period. For example: if a vehicle costs $30,000 but is valued at $16,500 after 36 months, $13,500 (plus interest) is the portion paid. Additional fees and a refundable security deposit may be required.

What is the best online car buying service? ›

Cars.com, Carvana, Edmunds, CarMax and TrueCar are our top recommendations for used car websites. Whether you want to find your ideal pre-owned vehicle or find the right buyer for a car you're selling, these sites are easy to use and offer excellent customer support.

Why should you turn the radio off when you are test driving a car? ›

Be quiet and listen.

At one point during the test drive, turn off the radio and close all the windows so that you can hear what is going on, especially at highway speeds. Is the engine loud during cruising or only when accelerating?

Why is it important to know the dealer invoice price before making an offer on a new car? ›

Understanding the terms used by car dealerships — like invoice price, MSRP and fair market value — can come in handy when it's time to negotiate the price of your new car. A car's invoice price (what the dealer lists as what it paid the manufacturer for the car) can be a starting point in price negotiations.

How much do you save on gas with a Costco card? ›

While the exact amount of savings you'll get depends on factors like where you live and which club you visit, you can reasonably expect to save around $0.15 to $0.20 per gallon. Let's say you save $0.17 per gallon when you fill up.

How much do you save on average with Costco? ›

So how much money can you save by buying bulk groceries from Costco? By my calculations, you'd save over $1,000 in a single year by shopping from a wholesale retailer.

How much do you save with Costco Executive Membership? ›

Executive Members earn an annual 2% Reward on qualifying purchases at Costco, Costco.com, and Costco Travel.

References

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