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May 25, 2021
Can you actually get the best deal buying a car through Costco's Auto Program?
Well, the answer is "sometimes", but it still pays to shop around.
Let's dive into my review of the Costco Auto Program, and if it’s worth it for car buyers.
Table of Contents
Before you bother reading any Costco Auto Program reviews let me tell you it is possible to beat Costco prices. Do not settle for their member pricing. More on that later, but first...
The Costco Auto Program is available for Costco Members. It provides them with prearranged special membership pricing on vehicles in dealerships across the country. The goal of the program is to provide a “smooth, seamless buying experience for Costco members.”
Essentially, the program connects members to participating dealerships that offer deals on car prices. Through their call center, Costco can help you with your purchase directly. However, you can use the online platform directly to compare reviews and examine monthly pricing.
Each participating dealer pays a monthly fee to be part of the program. Costco does not make a percentage of each sale. Instead, they make money from the program through the membership fees the dealers pay. Dealers participate for access to Costco’s large membership base.
The program includes:
Costo allows you to buy cars via financing, but they do not provide the financing. The deals from the Costco Auto Program apply to the price of the car, whether it is bought outright or through financing. However, you will need to get financing from a third party or the dealership. You should still shop around for the best financing options and rates before buying a car through the Auto Program.
No, you cannot negotiate with the authorized Costco dealers on vehicle price. One of the biggest benefits and drawbacks of the program is that it is haggle-free. This is helpful for inexperienced car buyers or those who do not want to deal with negotiation. However, some buyers can get better deals negotiating than they can from the program.
Here are the steps to buying a car through the CAP:
Car buying should always begin with research. Before going to buy your car, you should know:
Costco does not provide financing. If you need financing for your car purchase, get it from an online lender. Research financing options ahead of time and get preapproval before heading to the dealership.
Head to the Costco Auto Program website to start searching for inventory. You will have to ultimately buy the car from the dealership, but it helps to first look for qualifying vehicles that you are interested in.
Many of the vehicles on the site are customizable. You can choose the features, trim, and color you want. Other times, you can only select the model.
Once you have selected your preferred vehicle, fill out the form. You’ll need to enter your membership number and contact information. Then Costco will send you the contact information.
You can then call the dealership or go in person to find out the discounted price and decide if you will make the purchase. Make sure to ask for the designated salesperson.
You will receive the Costco Member-Only Price Sheet at the dealership. The Costco Auto Program Price Sheet will break down the prearranged vehicle price, savings through rebates, and any optional equipment.
After you’ve reviewed the discount, you can choose to buy or lease the vehicle. However, you are not obligated to do so. You can decline the offer at any time. You may also trade-in your vehicle.
When purchasing the Costco Auto Program, you are buying through a dealer, not Costco. This means that the dealership provides information on warranties, returns, deliveries, and more.
The program does include trade-ins. Car buyers can trade in their vehicles for credit toward the new purchase.
Additionally, as part of the program (whether you buy a vehicle or not), Costco members receive a 15% discount on services, parts, and accessories.
Gold Star and Business Costco members receive a $100 coupon for oil changes, extended warranty plans, parts, and accessories from the dealership where the vehicle is purchased. The same incentive applies to executive members, but for a value of $200.
On occasion, Costco will offer incentives for a limited time on a particular manufacturer.
The average discount for those who buy cars through the Costco Auto Program is $1,000. However, discounts vary greatly and can be significantly less or more depending on the dealership and vehicle.
There are many advantages to using the Costco Auto Program, including:
Despite the many perks of Costco’s Auto Program, there are some drawbacks to consider as well.
According to the Costco Auto Program, buyers can save on average up to $1,000 on the vehicle price. This is just an average, and savings can vary greatly depending on the dealership and model.
However, it is possible to beat the Costo Auto Program prices.
It comes down to your negotiation skills at the dealership to get a better price. Costco Auto Program has a network of dealerships they work with, but there's no negotiation on your part. Since Costco Auto Program only works with participating dealerships and salespeople, there could be a wider net to cast if you do it yourself. We recommend reaching out to 6-8 dealerships to get a truly competitive price.
You may also be able to negotiate dealer add-ons that can save you more money than going with the pre-determined Costco Auto Program price.
In addition, some dealerships may not let you take advantage of manufacturer or dealer incentives when shopping through Costco, so be sure to keep yourself updated with the best car deals.
In the end, it is possible to beat the Costco Auto Program price, but it really depends on your research and negotiation skills.
Overall, the CAP is a good option for existing members, but it is not the only option. There are many different car buying alternatives, including:
BJ's offers plenty of exclusive member benefits, but they no longer have an auto buying program. Members can still get savings and free maintenance on tires.
Here is a quick video on how the Costco Auto Program works:
If you already have a Costco membership, it is worth checking out the Auto Program pricing for cars you are interested in. However, it’s not worth buying a Costco membership just for the Auto Program because you may be able to get better deals by negotiating on your own. Always compare pricing for the membership program with dealership incentives and offers.
Car buyers can shop for factory-certified used vehicles and select pre-owned vehicles through Costco.
The Costco Auto Program includes new cars.
The major perk of the Costco Auto Program is haggle-free shopping. Costco is looking to provide a haggle-free experience and preferred pricing to its members. If you already have a membership, it is worth considering the Auto Program.
When buying through the Costco Auto Program, you are purchasing the vehicle from a participating dealership. Costco does not deliver vehicles, but some of the authorized dealerships may. Discuss delivery options with the dealership at hand, but be prepared to pay extra for delivery.
Yes, you can trade in your vehicle for a new or used vehicle through the CAP. The trade-in amount can be used as credit toward your new purchase.
As of right now, you cannot sell your vehicle via the Costco Auto Program.
Yes, you can lease a car with an Authorized Dealer Contact with the Costco Auto Program. The "Agreed Upon Value of the Vehicle" is the special discounted price for car leases. You will also be able to trade in your vehicle at participating dealerships.
The average discount for those who buy cars through the Costco Auto Program is $1,000. However, discounts vary greatly and can be significantly less or more depending on the dealership and vehicle.
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