The Costco Auto Program: A Good Deal or Just Hype?
As someone who enjoys negotiating with car salesmen because I can show off my knowledge, I also know there are those who despise it. That’s why there are car-buying programs like the Costco Auto Program that help make the process easier—or does it?
The Costco Auto Program provides members with prearranged pricing on many makes and models through a network of approved dealerships. The program allows car buyers to save on car pricing; whether you’re looking for a luxury SUV, plug-in hybrid, or EV – there’s a deal.
The Costco Auto Program is designed to be straightforward and user-friendly. All you need to do is select the eligible model, register for a Savings Certificate online then present your certificate at the Costco partner dealership to access the special pricing and incentives.
Here are several reasons why the Costco Auto Program might be the perfect fit for your car-buying needs, and a few things you should know if you decide to try it.
Related: Yes, You Can Buy A Car At Costco, And Here’s How to Get the Best Deal
Since the price is already set, there’s nothing to negotiate. Paperwork, a credit application and more move much more quickly once all the parameters are set, which is done by Costco.
While I haven’t used Costco’s Auto buying program, I have had this experience using a broker, and my deals were good. I’m talking at least 9% off MSRP.
Even though you may get a better price on your own, the no-haggle experience may be worth it; the improved experience, but potentially smaller discount, should be less stressful.
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Not All Dealers Are Costco Dealers, Or Can Offer the Costco Deal
Costco negotiates specific packages on every model offered and sells these models through specific dealership partners with whom Costco has a contract. Many dealers will say they can offer the Costco deal, but if they are not a contracted partner, they can’t. There is only one Costco dealer per brand in each city or region.
Buying through a Costco-authorized dealer entitles buyers to the exact negotiated price, incentives from the dealer, manufacturer and Costco, discounts on certain parts and services and a straightforward, no-haggle process.
What Drives Her… to Buy a Car. Or To Walk Away?
Buy New, Pre-owned or an RV!
Costco’s auto dealers also sell used cars, which means you can also buy a used car through this program, too. Similar rules apply: you must use the Costco authorized dealer to ensure that you’re working with a dealer that complies to Costco’s rules and the upselling of many services is not allowed. And, you can buy an RV through Costco and realize your roadtrip dreams.
Read More: Driver Assist and Safety Features, or ADAS, Broken Down by Brand
The Costco Auto Program Offers Discounts on Accessories
Costco Auto Program can offer discounts on accessories for the car you choose to buy or lease. If you want special floor mats, you can get them at a discounted price.
The Program Does Not Allow Dealer Add-ons
If it’s not on the discount list, the dealer is likely prohibited from trying to upsell you on it, which is in Costco’s contract with dealers; they are not supposed to offer certain dealer add-ons. These can include things like ceramic coating, wheel locks, tinted windows and more. While the lack of these offerings may deter some buyers, it may appeal to others.
The Costco Auto Program is Flexible
If the dealer with which you’re originally matched doesn’t have the exact car you want, call Costco Auto’s customer service line to get a new referral to a different dealer. Granted, this dealer may be further away. And this is when you have to ask yourself, “Is the deal worth the chase?”
The Costco Auto Program Has Limited Manufacturer Partnerships
They only work with select manufacturers, which is why when I was researching deals when I was in the market for a car, I went with a broker. At the time, Costco didn’t have any deals with Acura, and my heart was set on an MDX.
Dealer Participation Varies by Model/Trim on the Costco Auto Program
Even though a dealer might be in the program, it may not honor it for certain models/trims. For example, a Toyota dealer may participate, but you’ll not find a single one that will offer a Costco price for a RAV4 Hybrid right now, as they have a long waitlist.
Before Using the Costco Auto Program, Check Other Dealers
I think it’s worth checking various dealers’ websites because there is a very good chance that they may publish a price that is cheaper than Costco. It’s easier than ever now because dealers will often post their inventory on their websites. Or find a reputable broker.
Being Prepared To Buy Is Still Important
Prep your credit score, set aside your downpayment, research your trade-in, and get your financing in place in advance. It’s fair to find out if the dealer can beat your bank’s deal on a car loan, but if they can’t, your new car purchase won’t be disrupted.
Use the Costco Auto Program as a Starting Point
It’s a starting point but not necessarily your final destination. You can use the Costco price as a starting point for negotiations elsewhere.
I would recommend emailing other dealers only on in-stock vehicles shown through their website. Be sure to include the VIN of the specific vehicle you are interested in. Ask for an out-the-door price including all fees; you can include the Costco price (plus incentives) as the price to beat.
Currently, the program is having a special savings event ending on July 31, 2024. Eligible Costco members can combine available manufacturer incentives with: $1,000 on member-only incentive on select, new vehicles from Volvo, Chevrolet, Cadillac, or GMC, or $2,000 on member-only incentive on Polestar. Happy car shopping!
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