Costco members are quite likely to have taken advantage of the bulk buying deals on everything—whether it’s groceries or electronics. But did you know that there’s also a car buying program? And it’s actually a good one?
The Costco Auto Program is a good way to take the stress out of purchasing a new or used vehicle. It works just like how you’d expect any auto program to work. It offers a pre-arranged pricing and hassle-free experience at participating dealerships.
So, if you dread the haggling process or want a more streamlined way to buy a car, then Costco’s Auto Program might just be the perfect solution for you! Today, we’re going to take a look at this program, how it can be a smart move for many, and most importantly, whether it’s the right option for you or not.
How Does Costco’s Auto Program Work?
The Auto Program by Costco is pretty straightforward. Let’s break it down into steps:
- First, you browse and select a vehicle. There’s a website that comes with a Costco membership. You can search for both new and used vehicles here. Whether you’re after an economy car or a luxury model, there are several options across categories.
- Next, you need to get in touch with a participating dealership. Costco already has a well-established network of pre-approved dealerships that offer special, no-haggle pricing to Costco members. Vetted by Costco, these dealerships are ideal for anyone looking for quality service and competitive prices.
- Review the pricing. The standout feature here is the pre-arranged pricing—eliminating the need for any negotiating. The program’s price is already a discounted price for Costco members. The dealership has to honor it, taking the guesswork out of the equation for buyers.
- Next, you want to contact the dealership. They have “Authorized Dealer Contact” for this purpose, a specially trained person to handle Costco member transactions.
- You can now review a member-only price sheet with pre-arranged pricing options for the vehicle you’re interested in. It’s pretty transparent and the terms are very clear.
- And that’s it! You can now test drive the car and purchase it. The after-sales support is excellent and you can claim 50% off parts, services, and accessories at the dealerships too.
Pro tip: Though there’s no haggling for prices, you can indeed negotiate other aspects such as the value of a trade-in car.
Benefits of Buying a Car Through Costco
The Costco auto program comes with a few salient features that help set it apart. For example, Sam’s Club also offers an excellent program and it’s perfectly fine to be a little confused between that and Costco’s auto program. A good comparison guide will help you determine which one is the better program for your specific needs.
But when it comes to Costco car buying, you will find that there are several distinguishing factors that make it better for certain types of people.
Let’s break down all the benefits you can expect from the Costco auto program.
- Pre-Arranged, No-Haggle Price: The pre-arranged pricing model takes haggling out of the equation. No more negotiating with salespeople, which is not a walk in the park for everybody. Costco has made it clear to partner dealerships that the members should get exclusive, pre-determined prices.
- Trusted Partner Dealerships: Costco isn’t handing out the license to carry out the Costco Auto Program business without first vetting them. These are all reputable sellers. For the customer, it reduces the risk that typically comes with dealing with unreliable car dealers.
- Exclusive Member Discounts: The Costco car buying program offers you discounts on parts, services, and accessories. After a post-purchase satisfaction survey, you can get up to 50% off on these.
- Wide Selection of Vehicles: The Costco Auto Program has a good range of makes and models from all leading car companies in both conditions, new and used. Sleek sports cards, practical family SUVs, luxury models, you name it—there’s something for everyone.
- Stress-Free Experience: Costco has streamlined the car buying experience a lot through this program. No back-and-forth negotiations, no confusing pricing schemes. It’s all straightforward and stress-free.
The best-case scenario? Customers have saved thousands of dollars using the Costco Auto Program. Worst-case scenario? You’ll get the same prices as a car dealership where you know somebody.
Is the Costco Auto Program Right for You?
The Costco car buying experience is ideal for many hopeful car owners. If you prefer a hassle-free experience or if you’re already a Costco member, it doesn’t hurt to try the process once. Also, anyone looking for competitive pricing without the legwork can seriously consider this program.
There are only reputable dealers here because Costco makes sure that all partner dealerships are vetted to be trustworthy and reputed sellers in their areas. Overall, it helps you save time and the stress of vetting dealerships yourself. That is something a new car buyer doesn’t know how to do effectively anyway.
So, if you’re looking for a new or pre-owned vehicle, the Costco Auto Program can be a lifesaver for you. In some cases, you might be getting huge benefits if you consider the post-sales support and further discounts on the car parts and services.
Now, keep in mind that if you’re not okay with being limited to just a handful of dealerships, then the Costco car buying experience isn’t right for you. If you want to shop around, check a dozen or so dealerships, get a variety of quotations, and so on, this is not going to be a good idea. There are scores of car dealerships in any given area. Costco isn’t partnering with all of them. The majority, in fact, are not going to be a part of the Costco Auto Program.
Also, keep in mind that although Costco makes it super-easy to get a car on pre-arranged pricing, it doesn’t directly handle the financing part. You’ll need to arrange a loan or lease through the dealership (or a third party) separately. It might feel like a slight inconvenience but remember—the Costco-approved partner dealerships are reputed businesses highly likely to have standard financing options.
