Even if you’re a Costco member, you might not know much about the Costco Auto program. We think of Costco as a place to buy things in bulk, like toilet paper and double-sized jars of peanut butter, as well as exclusives on premium products like Dyson vacuums, LG widescreen TVs and Jura espresso makers.
Just as the company negotiates rock bottom prices on those things, Costco also strikes best-deal pricing on cars. Imagine not having to negotiate the price. Not having to deal with a pushy salesman. Getting a transparent deal. That’s how the Costco Auto Program works, and it’s also what we heard from people who have used the program. Here’s how it works, and what you need to know.
This story is 100% human researched and written based on actual first-person knowledge, extensive experience and expertise on the subject of cars and trucks. No AI was used.
Discounted Pricing, and Often a Gift Card, with a Costco Membership
A little research on Costco membership shows here are quite a few more perks, including low prices on gas, vacation packages, fine jewelry, insurance, home services and car maintenance such as oil changes and new tires.
The Costco Auto Program does the same thing: they pre-negotiate prices on almost every new car and have created a process designed to make the purchase easy for you. That means no haggling, no gotchas, no ugly surprises.
But the program goes further: Costco often has special pricing on specific models, typically fully loaded at a base or mid-level price, and includes any dealer or manufacturer incentives, such as cash back or special financing. Often, members taking advantage of these specials will get a Costco cash card, too.
Read: Don’t make this mistake — I almost didn’t buy my car at Costco!
Your Costco Membership Includes Deals on New and Used Cars
To buy through the Costco Auto Program you need a Costco membership. The rest is really simple. To qualify for a Costco Auto Program deal, go to the site, find the car you’re interested in and register; you’ll get an authorization number and the name of a specific dealer to work with. You must also be an active Costco member and take delivery of your new vehicle within a certain time frame.
You’ll find all the details at the Costco Auto Program website, as well as a wide variety of makes and models, both new and used, including trim level, features, safety information and manufacturer incentives such as cash back or special financing.
Read More: The Most Affordable 3 Row SUVs, and Which Trim We Recommend
You Actually Buy the Car From a Car Dealer
The Costco Auto Program sells through branded car dealers. And this is actually really good news: These dealers sell fully warrantied cars that they can also service when you need, including warranty service or recalls.
Costco contracts with one dealership in each city or region for each automotive brand—even Rivian and Tesla. These dealers are Costco-authorized and agree to Costco’s terms: no haggle pricing, transparent transactions.
And, other than a few specific products or add-ons, they are not allowed to upsell non-authorized products, so they can’t talk you into VIN etching, though they can offer things like maintenance or an extended warranty. Any additional equipment or products have to be offered at a discount, too.
Not Every Dealer is a Costco Autos Dealer, and Not All Can Offer The Same Deal
This is a slippery one: A lot of car dealers will say yes, they are the Costco Autos dealer, and that they can offer the same deal as the Costco deal.
This is simply not true. Costco contracts with a single dealer in each city or region and only that dealer can offer the authorized, pre-negotiated Costco price. Once you register on the Costco site you’ll be given the name of the authorized dealer and only that dealer can sell you a Costco-negotiated deal.
How the Costco Auto Program Works
Once you find the car you want, submit a request and you’ll be contacted for a dealership for an appointment. You can also obtain direct contact information if you want to contact them on your own.
At the dealership, you’ll meet with the Costco authorized salesperson, take a test drive and view the special Costco Member-Only price sheet to see the pre-arranged price. If you don’t love the car or the price, you are under no obligation to purchase the car, as with any other new or used car negotiation.
What About Trade Ins and Lease-Buyouts?
Here’s where you’ll need to do your homework: Trade-ins should be considered a separate transaction. Costco doesn’t manage or monitor trade-ins, though car dealers are usually open to them. Know the trade-in value of your car, ask questions of the dealer separately from the purchase transaction and be prepared to know if their trade-in offer is a fair one.
If the dealer gives you a fair trade-in value, it can make your final transaction easier because they’ll do all the paperwork. However, if they can’t match the value of your car, consider selling it independently or through a reputable car buyer like CarMax.
If you have a leased car with a buyout price lower than the used-car price, the dealer may buy out your lease and credit you the difference. Know your options before you begin the process.
Costco Auto Program Deals for All the Wheels: Used Cars, RVs and Motorcycles!
Pre-owned cars (from only certain car makers) are also eligible, and the purchase process is similar. Just be sure to show your current Costco membership card when you arrive at the dealership. The dealer’s Costco sales rep will let you know if you need to bring anything else.
Aside from cars, the program also offers options for motorcycles, power sports vehicles, and RVs. You can pretty much find deals for all types of wheels using the Costco program.
We Asked Costco Car Buyers: Would You Do it Again?
If you’re unsure about buying a car through Costco, ask around. Chances are, someone you know has already used the program and has good things to say about it,
“Love, loved, loved it – we purchased two [cars] through the Costco Auto Buying Program and would do it again,” said my friend Gayle Feldman Turner. “The ease of it all! They made buying a car a breeze. We knew what we wanted, called and talked to them, they located one, no haggling over price – no fuss or muss or, ‘Let me talk to my manager and see what we can do,'” she said.
Buy a Car in… 20 Minutes???
“The dealership where they had us pick up both cars had the paperwork and car ready and waiting when we got there,” Gayle told me. “It took maybe 20 minutes from the time we got there till we were driving it home. It was seriously one of the greatest experiences of our lives, so much so that we bought the second car through them as well. They took all the fear of what you normally dread when you buy a car out of the equation and spoiled us forever at just how easy buying a car should be! We’ve suggested it to friends and family, and they all have similar stories!”
Costco Auto Program Means More Savings, More Gas Money
An easy, no haggle experience is probably worth the price of membership. But like all things Costco, the deal gets better: each purchase includes any manufacturer rebates and incentives that can be stacked with your member-only price. Information on these is available on the website as well.
For some cars Costco often has a cash card incentive for making the purchase. Check the Costco Autos Program site for offers, which can be seasonal and apply only to specific cars or models. And after making a purchase you may be asked to complete a Costco Autos Program survey and get a $100 Costco card. How sweet is that?
Millions of Sales Without Haggling? Imagine that!
The Costco Auto Program, which began in 1989, consistently ranks as one of the top member-based auto-buying programs, resulting in more than 2 million vehicle sales at participating dealerships in the last five years. It’s a relief to know that it can be easy to shop for a car and save money on one of the biggest purchases we make. The best part? Haggling is a thing of the past!
