Costco Auto Program Review
Most people know Costco for its bulk deals and legendary hot dogs, but members can also save on their next vehicle purchase or lease with the Costco Auto Program.
The Costco Auto Program offers prearranged pricing at partner dealerships. Members also get extra perks, like discounts on service and parts at participating repair shops.
This guide explains how it works, what you can expect and how it compares to other car-buying services.
- The Costco Auto Program is a free car-buying service for Costco members.
- Members can get exclusive cash incentives and prearranged pricing (which means no haggling).
- You have to go to the dealership to see how much a car costs through the Costco Auto Program. Prices aren’t available online.
What is the Costco Auto Program?
The Costco Auto Program is a car-buying service that’s included with all Costco memberships. You aren’t actually buying a car at Costco. Instead, the Costco Auto Program links you with a partner dealer where you can lease a car or buy:
- New cars, trucks or SUVs
- Certified pre-owned cars, trucks or SUVs
- Electric vehicles
Although it offers exclusive members-only incentives, the main benefit of the Costco Auto Program is an easier car-buying experience. Your car price is prearranged between the dealer and Costco. You can’t negotiate — what you see on your Costco Member-Only Price Sheet is what you get.
Costco members can also get 15% off of parts, service and accessories (up to $500 per visit) at participating repair shops. This feature is available for all members, whether or not they bought a car with the program.
Costco Auto Program pros and cons
Pros
- Easy dealership experience
- Has a focus on customer service
- Members-only incentives
- Discounts on service, parts and accessories
- Will never pay more than manufacturer’s suggested retail price (MSRP)
Cons
- Must go into the dealership to get the car’s price
- Have to buy from a partner dealership
- Could get a lower price by haggling
- Dealer can add mandatory extras
- Only available to Costco members
Costco Auto Program pros
- The vehicle price is prearranged before you get to the dealership. You won’t have to play “how low will you go” with your dealer. The dealership and Costco work out the price of your car.
- Costco takes steps to ensure that car buyers will receive the same level of service as they would in store. It even sends secret shoppers to its partner dealers for quality control.
- Depending on the car you’re buying, you might qualify for a members-only incentive. For example, an incentive could be $1,500 off of a certain year, make and model for a limited time. You can stack members-only incentives on top of manufacturer incentives.
Costco Auto Program cons
- Car prices aren’t shown online, so you have to go to the dealership. Online car shopping may be the norm, but you can’t do that with Costco. You have to go to the dealership and ask for the Costco Member-Only Price Sheet.
- Prices are non-negotiable. There’s no haggling when you buy a car through the program. This could be a relief for some, but it’s possible that you could have negotiated yourself a better deal.
- Mandatory dealer add-ons might negate savings. Some dealers include mandatory add-ons (like tinting and pinstriping). These and other dealer fees might offset whatever you saved through a members-only incentive.
How to buy a car through the Costco Auto Program
If you want to buy a car through the Costco Auto Program, you can’t just walk into any dealership and tell them you’re a Costco member. The process requires a certain order of steps.
Pick out your car
Visit the Costco Auto Program website and select “New” or “Pre-Owned.” Then, enter your ZIP code, vehicle year, make and model. On the next page, filter your results to find the car you want to buy. You can also research and compare vehicles.
The process for pre-owned vehicles varies slightly, but the idea is the same. Rather than selecting the exact vehicle you’re looking for, you’ll search inventories at participating dealerships near you.
After picking out your car, you’ll provide your name, contact information and Costco membership number.
Make an appointment with a participating dealership
Shortly after providing your contact information, an authorized dealer will call you to schedule an appointment. You can call first, but make sure that you speak with your Authorized Dealer Contact (Costco will assign you one during the process).
Visit the dealer and review your price
When you get to the dealership, you’ll be paired with a dealer trained and certified in the Costco Auto Program. They’ll have your Costco Member-Only Price Sheet, which shows the prearranged price available through the Costco Auto Program.
You’re not obligated to purchase the car after seeing Costco’s prearranged price, but the only way to see how much the car costs is by taking these steps first.
Is it worth using the Costco Auto Program?
The Costco Auto Program is best for Costco members (or those willing to become members) who don’t want to haggle. If you want the absolute lowest price on a car, consider skipping the program so you can negotiate car prices.
If you’re shopping but not quite ready to buy, the Costco Auto Program probably won’t make sense. Prices aren’t available online. You have to go to a dealership for a Costco Member-Only Price Sheet. You also have to fill out a form that sends your contact information to an authorized dealer, so expect phone calls.
But even if you’re not buying a car, the Costco Auto Program is worth it for the 15% discount on parts, service and repairs at participating repair shops. Access to the program comes with Costco membership, so it won’t cost you anything extra.
“The Car-Buying Program is great if you don’t have the time or energy to hunt for a car deal and if haggling isn’t your thing. You’ll get a decent price. But if you’re up for putting in the effort, you can find way better deals on your own.” — u/ByteWanderer
“Recently negotiated $3.5k off a CR-V. The Costco quote was only $500 off. In other words, for popular cars, you still benefit from negotiating and competitive bidding.” — u/Poggendorff
“I thought this would be the best way to buy a car, but it’s not. … Costco only refers you to certain dealerships, so you can’t really shop the price in the program. Bottom line is I saved over $1,500 NOT buying it from the Costco program.” — Fran A.
“Great way to save on an expensive auto repair. It’s not often you can save $150 simply by printing out the certificate. Thankfully the dealership told me about this but I wish I had known sooner.” — Amy C.
“As someone who sold cars for four years, I can tell you with certainty — no, absolutely not. Go to the dealer. The Costco program and other similar programs are lead-generating tools for participating dealers.” — Erik S.
“I could have saved more somewhere else…possibly. But it would’ve been a drawn out process. I received the estimate via email, did some more online research and walked in, saying that I wanted an even lower price. It was faster and less of a headache, which in my opinion is worth it.” — Josh S.
How the Costco Auto Program compares
Costco isn’t the only retailer or company that offers a car-buying service. AAA and PenFed Credit Union also offer their own similar services. Here’s how they stack up.
| Costco Auto Program | AAA car-buying service | PenFed | |
|---|---|---|---|
| Membership requirement | Must be a Costco member | Must be a AAA member | Must be a PenFed Credit Union member |
| Financing options | None | Offers auto loans in some states | Offers auto loans in all states |
| Extra perks | Discounts on car parts, service and repairs | 24/7 roadside assistance, free ID theft monitoring | Discount on PenFed auto loan when using PenFed’s car-buying service |
| Best for | Customer service and an easy experience | Towing and other benefits, a potential discount on a AAA auto loan | Low auto loan rates |
Frequently asked questions
Yes, you have to use your own financing with Costco because Costco doesn’t offer auto loans. But the dealership that Costco partners you with can help you set up a loan if you need.
Before you do that, you should get a preapproved car loan. You can’t know that the dealer is giving you the best rate until you’ve gotten other rates to use for comparison. Also, dealers often add 1%-2% onto car loans they facilitate. This is called dealer reserve, and it helps the dealership earn more profit.
No, family members can’t use the Costco Auto Program. Only Costco members can use the Costco Auto Program. There is an exception, and that’s if your family member is a designated user of your account. Your family member would have their own card for this to be the case.
Yes, you can also trade in your car if you use the Costco Auto Program. Let your dealer know and it will let you know how your trade-in will affect your out-the-door price.
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