Learn How the Costco Auto Program Works

What Is the Costco Auto Program?

The Costco Auto Program is a car-buying service that Costco members can use when shopping for a new or used vehicle. Unlike a traditional dealership where you negotiate prices directly with salespeople, the Costco Auto Program connects members with participating dealerships that have already agreed to specific pricing structures. This program exists to give Costco members another way to approach car purchases without haggling.

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Costco partnered with various automotive retailers and dealer networks to create this program, which has been operating for several decades. The service is available to current Costco members at warehouses across the United States. The program covers most vehicle types, including sedans, SUVs, trucks, and hybrids. It also extends to pre-owned vehicles through partner dealerships.

How does it differ from regular car buying? In a typical dealership experience, prices vary based on negotiation skills and timing. With the Costco Auto Program, prices are set in advance by participating dealers. Members receive a list of pre-negotiated prices for specific vehicle models and years. This approach removes some of the traditional back-and-forth that happens on car lots.

The program does not involve purchasing cars directly through Costco. Instead, Costco acts as a connector between its members and dealerships that have agreed to offer special pricing. Members use the Costco Auto Program website or visit their local warehouse to find information about participating dealers near them. From there, they contact the dealership directly to move forward with their purchase.

Practical takeaway: The Costco Auto Program is a membership perk that provides access to pre-negotiated vehicle pricing through partner dealerships. It simplifies one aspect of car shopping by removing price negotiations, though you still visit dealerships to complete the purchase process.

How to Access the Costco Auto Program

To use the Costco Auto Program, you must be a current Costco member. This includes Gold Star members, Executive members, and members in any Costco warehouse location. Your membership must be active and in good standing. If your membership has expired, you would need to renew it before accessing the program. The program is included with your membership at no additional cost.

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You can access program information in two main ways. First, you can visit the Costco Auto Program website directly. This website is separate from the main Costco.com site but is specifically designed for the auto program. Second, you can visit your local Costco warehouse, where staff members can provide information about the program and help you locate nearby participating dealerships.

When you visit the website, you will need to enter your membership number to see personalized information. This step confirms that you are a member and allows the system to show you dealerships in your geographic area. The website is designed to work on both desktop computers and mobile devices, so you can browse information at home or on the go.

The website lists participating dealerships sorted by proximity to your location. You can view the dealerships' names, addresses, phone numbers, and website links. Many dealership listings include hours of operation and specific contact people assigned to handle Costco member inquiries. Some dealerships have dedicated staff members who work specifically with Costco members, which can streamline your experience.

Once you find a dealership that interests you, the program suggests contacting them directly by phone or email to inquire about current inventory and pricing. You mention that you are a Costco member using the Auto Program. The dealership will then provide you with pricing information and available vehicles that match the pre-negotiated rates.

Practical takeaway: Start by confirming your Costco membership is current, then visit the Costco Auto Program website or your local warehouse to find participating dealerships near you. Contact your chosen dealership directly and mention you are using the Costco Auto Program to access their pre-set pricing.

Understanding Pre-Negotiated Pricing and How Savings Work

Pre-negotiated pricing is the core feature of the Costco Auto Program. This means that Costco and participating dealerships have already agreed on prices for specific vehicle models before you ever contact the dealer. These prices are typically below manufacturer suggested retail price (MSRP), though the exact discount varies by vehicle, model year, and dealership location.

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How much can members save? Savings typically range from several hundred to several thousand dollars off the MSRP, depending on the vehicle. For example, a member might find pre-negotiated prices that are $500 to $2,000 below MSRP on popular sedan models, while larger vehicles like SUVs might have larger absolute dollar discounts. The percentage discount is usually similar across different vehicle types, though it varies by dealership and current market conditions.

The pricing structure is transparent. Dealerships provide members with a written quote that shows the MSRP, the pre-negotiated price, and the savings amount. This quote is typically valid for a specific time period, such as 7 to 10 days, giving you time to review the offer without pressure. Some dealerships may honor the quote for longer periods, though this varies.

It is important to understand what is included in the pre-negotiated price. The base price typically covers the vehicle itself with selected standard features. Additional options, such as upgraded interior packages, technology packages, or extended warranties, may not be included in the pre-negotiated price and could increase your total cost. Destination charges and taxes are also typically separate from the advertised pre-negotiated price.

The savings you receive through this program come from the agreement between Costco and the dealership network. Dealerships participate in the program because it brings them customers. Members benefit because they avoid the time spent negotiating prices. This arrangement creates a situation where both parties gain something, which is why the prices are typically lower than what you might negotiate on your own.

Practical takeaway: Pre-negotiated pricing through Costco Auto can save members several hundred to several thousand dollars off MSRP. Review written quotes carefully to understand what is included in the price and what costs are separate, such as options, taxes, and destination charges.

Step-by-Step Process for Using the Program

Once you have found a participating dealership, the buying process follows specific steps. First, contact the dealership and mention you are using the Costco Auto Program. Have your Costco membership number ready, as the dealership will likely ask for it to verify your status. Some dealerships have dedicated Costco coordinators or departments, so you may be transferred to the right person who handles program inquiries.

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Next, discuss your vehicle preferences with the dealership representative. Tell them what type of vehicle you are interested in, what features matter to you, and any budget constraints you have. The representative will then search their inventory for vehicles that match your criteria and provide you with pricing information based on the pre-negotiated rates. They will provide you with a formal quote that outlines the vehicle, the price, and what is included.

Review the quote thoroughly. Compare the pre-negotiated price to the MSRP to confirm the savings. Check what options and packages are included in the base price. Ask about any additional costs such as dealer preparation fees, documentation fees, or delivery charges. Some of these fees are standard, while others may be negotiable. The dealership should explain all costs clearly.

If you want to move forward, you typically schedule an appointment to visit the dealership in person. This visit includes test driving the vehicle and finalizing paperwork. Even though the price is pre-negotiated, the dealership may still discuss financing options, trade-in values if you are trading a vehicle, and extended warranty or service packages. These items are separate from the base vehicle price and remain open for discussion.

Before signing any documents, review everything carefully. The dealership will provide paperwork showing the vehicle details, the agreed-upon price, and any add-ons you have chosen. Financing terms, trade-in values, and warranty information should all be clearly stated. Once you are satisfied with everything, you complete the purchase and take ownership of your vehicle.

Practical takeaway: Contact a dealership, mention your Costco membership, receive a quote with pre-negotiated pricing, review the details carefully, schedule an in-person visit to test drive and finalize paperwork, then complete the purchase. The entire process typically takes a few days to a couple of weeks depending on your schedule.

What the Program Does and Does Not Include

Understanding the scope of the Costco

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