10 Things About Buying a Car from Costco's Auto Program That You Need to Know

The Costco Auto Program may be one of the retailer’s membership benefits that you didn’t know existed, even if you are a longtime member. But this membership perk promises the potential to get you a good deal on a car, truck, or SUV without the hassle of negotiating a price on your own.

Is the program right for you? Following are a few pros and cons of the Costco Auto Program that can help you decide whether to use this benefit.

The Costco Auto Program is not a fly-by-night newcomer to the world of car sales. It has been around for more than three decades. Today, a coast-to-coast network of 3,000 dealers is part of the program.

You can buy both new cars and pre-owned vehicles through the Costco Auto Program. For pre-owned vehicles, Costco makes sure that a car, truck, or SUV has been thoroughly inspected by a dealer to certify that the vehicle is in excellent working order and has a factory warranty to cover certain issues that may arise with the car or truck you purchase.

There also may be additional owner perks, such as a loaner vehicle if you need work done on your car or roadside assistance.

Want a car, truck, or SUV? It may not be difficult to find what you’re looking for from Costco. In addition, you can also use the Costco Auto Program to find other types of vehicles.

If you like taking road trips, check Costco’s selection of RVs. Are you a camping enthusiast who needs a pop-up camper or trailer for your next trip to the woods? Costco might be able to help.

The dealers participating in the Costco Auto Program are under the constant scrutiny of Costco members, who offer reviews of their interactions with these car sellers. Costco then shares the feedback with the dealers themselves. 

If you're unhappy with your experience, you can inform Costco's Member Advocacy Group, which will step in on your behalf to hopefully resolve the issue.

Manufacturers will have any number of incentives on different makes and models for various reasons throughout the year. With Costco’s auto program, they can help you navigate the different incentives to see which ones are available for the different vehicles you’re considering.

You also may want to check with Costco on any limited-time deals they may have with specific automakers. There may be additional incentives exclusively for Costco members that you can take advantage of, depending on the type of car, truck, or SUV you’re looking for.

For some car buyers, negotiating the price is one of the things they dread about the car-buying process. These shoppers probably will love the fact that the Costco Auto Program removes the buyer’s need to haggle over costs. Instead, Costco offers its members a set price with no need to negotiate.

If you're someone who enjoys using your negotiating skills, however, this might not seem like much of a perk.

Pro tip: If the cost of a new car is higher than you anticipated, you can shop around for the best auto insurance policy to reduce the overall cost of owning the car.

Yes, there are more than 3,000 dealerships that participate in the Costco Auto Program. But that still means that many other dealerships don’t participate in the program.

As a result, the Costco Auto Program might not be best for you if there’s a particular dealer or salesperson you prefer working with when purchasing a car.

Costco offers a discount for its members, but you will not know exactly what that discount is until you actually visit the dealership and ask about the Costco discount. That means you may have to contact several different dealers in order to compare their discounts through the auto program before you know what kind of advantage your Costco card can get you.

Costco can help you find the car you want, but Costco doesn’t offer financing. The price you lock in with a dealer through Costco’s program is an amount that you will have to find a way to finance.

There are several options for auto loans, including going through the dealer’s lender or looking for a better deal from your bank or local credit union. But you cannot get financing through Costco.

There are some Costco programs you can take advantage of without a Costco membership. For example, you can have optical screenings done at the pharmacy without a membership. And in some states, you may be allowed to buy alcohol from your local Costco without a member card.

But you will need a membership to use the Costco Auto Program. Of course, this might be a small price to pay for the bigger savings you can tap into when buying a car. Plus, remember that a Costco membership gets you access to discounted gas at the retailer. So, your car savings can extend beyond the initial purchase-price discount.

The Costco Auto Program may be a great way to save money on your next car, truck, or SUV. But be aware that there are some drawbacks to the program, which means it may not be the best plan for every Costco member’s car shopping needs.

Doing a little research about the program can help you discover whether using this aspect of your Costco membership is the best way to save some money and reduce the hassle factor the next time you buy a car. Remember to shop around for the best auto insurance policy to save money where you can.