Looking to Buy a Car? Here's Why You Should Check Costco Auto

Used car prices declined by about 7% in 2023, but the overall cost of car ownership can still be daunting. Even if you have great credit and can get a low-interest auto loan, saving money on your next car purchase is always a good move.

One of the best ways to save money on buying a car is the Costco Auto Program. If you're a Costco member, you can get special deals on new and pre-owned car purchases. For people who expect to be in the market for a new (or "new to you") car purchase in 2024, the Costco Auto Program could easily recoup the cost of your Costco membership.

Let's look at a few reasons why the Costco Auto Program is worth a look when you're ready to buy your next car.

1. Special car discounts for Costco members

Costco offers wonderful discounts on hot dogs, rotisserie chickens, and my all-time favorite dark chocolate and cherry trail mix. But it also offers discounts on cars! That's right: with the Costco Auto Program, you can qualify for special members-only pricing on a new or used vehicle.

Here's how the Costco Auto Program works:

1. Go to the Costco Auto Program website (costcoauto.com)
2. Search for the vehicle that you want to buy (you can choose make/model, type of fuel -- gasoline, EV, hybrid, etc.)
3. When you see the vehicle you want, you can choose the trim or "Build vehicle" to choose the exact specifications
4. Click "Locate a Dealer"

At this point, the Costco Auto Program asks you for your contact information, and you will be put in touch with one of its approved dealers. The car dealership will then contact you, and you can talk to an authorized dealer contact who can show you the Costco members-only price sheet with the price of the vehicle. You are under no obligation to buy the vehicle. But this is how you get the Costco Auto discount.

Does this all sound kind of secretive, like joining an underground car-buying society? It is! You don't get to see the actual sale price of the vehicle until you have a personal conversation with the authorized dealer contact. That's because car dealerships that participate in the Costco Auto Program don't want absolutely everyone knowing about it; they cannot offer these deals and discounts to everyone. So they keep the details close to the vest.

2. No haggle car-buying with Costco Auto Program

One of the biggest benefits of the Costco Auto Program is that it's a no-haggle buying process. Costco has already built relationships with these dealerships, you can choose the make/model of vehicle that you want, and there's a built-in discount ready to go when you arrive. If you dislike bargaining with car dealers, if you feel like every time you've purchased a car, your personal finances have gotten worse, if you just want to get the whole process over with as fast as possible and get on with your life…the Costco Auto Program might be right for you!

But if you are a savvy car shopper, if you're not afraid to haggle, if you love doing your research and shopping around for price quotes from several dealerships in a multi-state area…then you might be able to get a better discount on your own.

3. How much of a discount does the Costco Auto Program help you get?

The exact discounts you can get from the Costco Auto Program are not always clear. Remember the secretive process and the sacred parchment -- er, the Costco members-only price sheet? Costco does not advertise or promise specific savings; it depends on the vehicle and the dealership.

But a previously published piece from The Ascent found that Costco has claimed a typical savings of $1,000 per vehicle. And along with the Costco member discount, you can also get special manufacturer incentives. The Costco Auto Program website (as of Feb. 8, 2024) is offering a $1,000 members-only incentive on select new Cadillac models (2023 and 2024 model year).

My personal experience with the Costco Auto Program

Back in October 2021, I got into the worst of a long series of car crashes, and my family's second vehicle was totaled. We quickly realized that being a one-car family was not going to work for us, so we started shopping for a new car. Unfortunately, we were car-shopping during the global supply chain crisis and a nationwide car shortage. There were no cars anywhere. I picked a very bad time to total my car, because it was impossible to replace. (Let that be a lesson to the rest of you: in case you ever decide to total your vehicle, try not to do it during a global car shortage.)

So we tried the Costco Auto Program. The nearest participating dealership was in a neighboring state, a six-hour drive each way. We talked to the dealership by phone (this was during the pandemic; the in-person visit wasn't required), and the dealership was very courteous and professional, but had no cars available. I can't remember if I was told about a specific discount or not, but it was a moot point, because: no cars. We ended up getting on a waiting list for a new car with a local dealership, for MSRP with no haggling and no discounts, and were grateful to get that price.

Bottom line

I don't love buying cars. I feel like no matter what you do when you buy a car, you lose money. Cars are expensive, they require insurance and maintenance, and they lose value fast. But if I have to buy a car again anytime soon, I'm going to try the Costco Auto Program. Unless you're a master car haggler, the Costco Auto Program could be an easier, customer-friendly way to buy your next vehicle.