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Here's how you can buy a discounted car through Costco

Mar 8, 2018, 01:56 IST

Costco

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  • Costco's Auto Program allows members to buy discounted cars from participating dealerships.
  • A wide variety of vehicle types and models are available.
  • Members can buy or lease new or pre-owned vehicles.


Costco sells just about everything, so it's no surprise that the retailer can also serve as a broker for discounted cars. Through the Costco Auto Program, members can search for a variety of vehicles, including cars, motorcycles, jet skis, and RVs.

Once you've chosen a vehicle and its trim, features, and exterior color, Costco sends you the contact information for a participating dealership and salesperson, at which point you can visit the dealership, find out the vehicle's discounted price, and decide if you'd like to buy or lease the vehicle. The range of available vehicles extends from budget options that start under $20,000 to luxury vehicles that top $100,000.

Costco members can also get a 15% discount on vehicle parts, service, and accessories at participating service centers.

Here's how you can use your Costco membership to get a discount on your next car:

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1. Go to the Costco Auto Program web page or contact the program's call center.

From the Costco Auto Program web page, you can browse available vehicles and use the company's research tools to compare vehicles, calculate monthly payments, and read reviews. You can also contact the company's customer service line to have an employee walk you through the process over the phone.

2. Choose the vehicle you'd like

If you want a car, you can choose from a variety of classes: sedans, sports cars, SUVs, trucks, crossovers. While you don't learn the discounted price until you visit the dealer (this is an old sales trick – potential customers are less likely to walk away without buying if a salesperson is able to talk with them about their hesitations face-to-face), the MSRP on the available vehicles ranges from under $20,000 to over $150,000. You can also buy or lease a motorcycle, RV, ATV, jet ski, snowmobile, or UTV.

If you don't want to buy a new vehicle outright, you can also lease a vehicle or select a pre-owned vehicle instead of a new one. A pre-owned vehicle has been used by another owner, but is inspected by the dealer for any broken or worn-down parts, which are fixed before the car is sold again.

3. Customize the trim, feature package, and exterior color

For many cars, you can select the trim, features, and exterior color you'd like. For other vehicles, you can only choose the model.

4. Provide your contact information and Costco membership number

After you've chosen the vehicle you'd like, you fill out a form with your name, contact information, and Costco membership number. Costco then sends you the contact information for a participating dealership and the designated salesperson you have to work with to get a Costco discount.

When giving Costco your information, you also have the option to allow Costco to review your purchase agreement if you end up buying the car to make sure you received the correct price.

5. Go to the participating dealership and talk to the designated salesperson

Once you go the dealership and talk to the designated salesperson, you'll be shown the discounted price for the vehicle you requested. The Costco Auto Program FAQ notes that the dealer may not have the car you requested on the lot, so you may have the option to have the dealer buy the car from another dealership or order one directly from the manufacturer.

6. Buy or lease the vehicle with the Costco discount

Once you've reviewed the discounted price, you're able to buy or lease the vehicle, but there's no obligation to do so if you don't like the price or change your mind. You also have the option of trading in your current vehicle.

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