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
