3 Perks of Buying a Smartphone at Costco

You've probably seen them -- most Costcos have 'em -- the AT&T reps. Maybe you, like me, were wandering through the electronics section when they stopped you to solicit a great smartphone offer for Costco members. It's hard to break away -- they're so nice! -- but deep down you're wondering what tricks they could be pulling to rope you in. 

You're right to feel suspicious, as these offers -- found at Costcos and Targets and Sam's Clubs across the country -- aren't always what they seem. But if you know how to navigate the fine print, buying a smartphone at Costco could be a good deal and a smart financial decision. Here's why. 

1. Exclusive deals for Costco members 

Through its partnerships with AT&T and T-Mobile, Costco often gives its members discounts for enrolling in a new plan. For instance, right now, you can get up to $350 off an eligible smartphone when you switch to AT&T and purchase the phone on a 36-month 0% APR plan. Meanwhile, T-Mobile and Costco will give a combined $400 off when you activate a Go5G plan. 

But you have to look at the hidden clauses to see what the deal entails. For example, the AT&T discount says $350 off but what it means is that you'll get a $100 Costco Shop Card and a $250 discount through AT&T. And that $250 doesn't come upfront but rather is spread out over 36 months. In other words, you'll get a $100 Shop Card (mailed within 60 days of your purchase) and $6.95 off your smartphone for every month during your 36-month installment plan. Your savings will eventually come out to $350, but it doesn't all come at once. 

A discount like this pretty much tethers you to AT&T for three years, that is, if you want the full $250 off. It could be a good deal for some people, but definitely not right for those who switch phones frequently. 

One additional perk is that AT&T will waive the activation fee for Costco members only. Other carriers, like Verizon, will charge $35 when you connect new phones or new lines of services. So that's an extra bit of cash for you to tuck into your savings account.

2. Savings on new phones and accessories 

Costco's prices on new smartphones are often slightly cheaper than the manufacturer's. Take, for instance, the iPhone 15. At Costco, you can buy an iPhone 15 Pro (256 GB, Black, with AppleCare+) for $1,269.99. Meanwhile, on Apple's website, the same phone is selling for just over $1,298.  

Costco also has some of the best deals on smartphone accessories, like chargers and cases. For example, through Costco's website, you can buy Sahara soft and hard shell cases for the new iPhone 15 for about $16. Purchased from Sahara, these would cost you $30. You can also find deals on chargers, charging stations, and wireless charging pads through Anker, another Costco partner. 

3. Generous return policy 

Costco's return policy lets you return smartphones for 90 days. That's super generous. For comparison, Verizon has a 30-day return policy, T-Mobile's is 14 days, and AT&T also gives you 14 days.  

All things considered, buying a smartphone from Costco could be a lucrative deal, so long as you read and understand the fine print. And hey, if it's not for you, don't be afraid to say no to those AT&T reps -- even if they are super kind.