GIFT GUIDE/REVIEW: Stress Free Car Buying with Costco Auto Program

A bag of paper towels. A freezer full of frozen food. A large container of strawberries. A carton of sodas. A pack of soup cans. A bed. A brand new computer. What do all of these things have in common? All these items and more can be purchased from Costco. Isn’t Costco the best store?

Founded in 1983 in Seattle, Costco now has over 700 locations in the United States, and over 200 locations worldwide. Costco membership gives members access to the “best possible prices on quality brand-name merchandise.” But did you know that Costco has other services for members? Costco offers in-store pharmacy, optical, hearing, and photo services; a travel agency; mortgage and insurance services; and the Costco Auto Program.

Did you know that you can purchase a car from Costco? As I was leaving Costco one day, a brochure with cars on the cover caught my eye. I flipped through the brochure to find that Costco did indeed sell cars…and SUVs…and minivans…and trucks. Finding the brochure was fortuitous as the car I purchased new after college wasn’t cutting it as the family car. I made my first purchase through the Costco Auto Program in 1996. Since then I have purchased three more vehicles through the Costco Auto Program.

Looking for a New Car?

While you can’t purchase a car at your local Costco, you can purchase a vehicle at a Costco Authorized Dealer. According to Costco Services Manager, Dan Martinez there are more than 3,000 Costco Authorized Dealers in the United States where you can purchase new or pre-owned vehicles at low, prearranged pricing.

At Costco Authorized Dealers, you will have access to:

  • Low, prearranged pricing reserved for Costco members.
  • Specially trained and certified Costco Authorized Dealer Contacts who will assist Costco members at participating dealerships nationwide.
  • Dedicated Member Advocates who provide support before, during, and after vehicle purchases.

During special promo times, the number of Costco Authorized Dealers rises to 5,000, states Costco’s Martinez. Costco is currently running a GM Holiday Sales Event. Through January 4, 2016, Costco members will receive GM Supplier Pricing on a wide selection of new 2015 and 2016 Chevrolet, Buick, GMC, and Cadillac models.

My experience at Costco Authorized Dealers has been amazing! I have purchased two vehicles from a local Toyota Costco Authorized Dealer and two from a local Ford Costco Authorized Ford. From the moment I walked through the doors of the dealership, I was made to feel welcome. The process for buying a car through the Costco Auto Program was extremely easy. After mentioning I was a Costco member, I was immediately given the “low, prearranged pricing reserved for members.” There was no haggling. No negotiation. No hard sell. No nothing. The car buying process was straightforward and not stressful at all.

Buying Through the Costco Auto Program

Here’s how the Costco Auto Program works:

Costco’s dedication to “bringing members the best possible prices on quality, brand-name merchandise” is a key element of the Costco Auto Program, too. Costco’s Martinez states that every Costco Authorized Dealer “must offer value and provide a superb experience for Costco members.” According to Martinez, “Costco Authorized Dealers are assessed regularly through customer feedback, spot checks, and shadow/secret shops” to ensure a beneficial experience for Costco members. Costco wants to provide a “common experience” at dealers by making sure “customers match to dealers” and that customers interact only with trained Costco Authorized Dealer Contacts who will “cut to the bottom and get past all the sales pitches.”

According to a recent Bloomberg Business article, Costco “moved almost 400,000 vehicles of all major brands in the U.S.” last year. “Costco is tapping America’s growing wariness with car dealers.” I love that when I purchased my Toyota Sienna minivan in 2006 the experience was hassle free. I walked on the lot, stated I was a Costco member, was offered the prearranged pricing reserved for Costco members, test drove a Toyota Sienna, and drove off the lot with my new Toyota Sienna in under 3 hours. The experience was so good that when I was looking to purchase a vehicle for the new teen driver in my family, I didn’t hesitate to go back to the same Toyota Costco Authorized Dealer.

Though the selection of Costco Authorized Dealers varies depending on where you live, Costco is very aware of Costco members’ vehicle preferences. Costco’s Martinez says that “members are asking for a mix of cars” when they select a Costco Authorized Dealer. In order to respond to members requests and to provide members with that they want, Costco has a large number GM, Toyota, and Honda Costco Authorized Dealers. If you “drive down any road in your town, you will see the popular dealerships selling cars that Costco members are buying,” according to Costco’s Martinez. Though hybrid dealers account for only a small percentage of Costco Authorized Dealers, dealers selling hybrid vehicles, like the Chevy Volt, are a growing part of the Costco Auto Program.

Costco’s Auto Program is a key benefit of a Costco membership for me. Through Costco Authorized Dealers, Costco members, like me, receive prearranged pricing on all makes and models of new and select pre-owned vehicles. Take it from me that access to the Costco Auto Program’s national network of hand-selected dealerships allows for a stress-free member experience.

Disclosure: I was not compensated to write this post.

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