Do you really save money buying a car through Costco?

Asked By: Delphine Sladovsky | Last Updated: 26th January, 2020
Category: automotive auto buying and selling
4.5/5 (30 Views . 25 Votes)
You can also save money if you complete a Costco Auto Program member satisfaction survey. It's good for a 50% off coupon that can be used toward auto parts, service and accessories at the dealership where the vehicle was purchased. For Gold Star and Business members, the coupon lets you save up to $100.

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Then, how much is the Costco discount on cars?

Although the average discount through the Costco Auto Program is $1,000, this number can vary quite a bit, so you may end up visiting a dealer only to get a disappointing offer. There's no guarantee the dealer is going to have your car on hand when you arrive.

One may also ask, what is the advantage of buying a car through Costco? Our mission is simple: Offer Costco members a great vehicle-buying experience; easily translating into multiple member benefits: A low, prearranged price that provides value. An easy, hassle-free experience with hand-selected dealerships nationwide.

One may also ask, is Costco a good place to buy cars?

It's a similar process if you're shopping for a used car. You can even buy motorcycles and RVs. So Costco is the best car dealer around and it's in the picture for best vehicle dealer, too. Next: Hassle-free buying is just the beginning.

How much can dealers go below MSRP?

Sometimes the dealer will post an "Invoice" price for the vehicle underneath the MSRP and use this as a selling point. "Look at the invoice price," says Frank, of Bayside Toyota. "We're only making a few hundred dollars selling you this car at this price, and plus, you're getting almost one thousand dollars off MSRP."

36 Related Question Answers Found

What happens to new cars that never get sold?

This Is What Happens to All of the Cars That Never Get Sold. That means they buy new cars from the manufacturer and sell them at a higher price to make a profit. Therefore, once the dealership buys those cars, they belong to them. They can't just send the unsold ones back to the manufacturer at the end of the year.

What is the cheapest way to buy a car?

What is the Cheapest Way to Buy a Car?
  • Buy A Cheap Car With Cash. Probably the cheapest way to buy a car is always to pay cash.
  • Get Pre-approved If You Aren't Paying All In Cash.
  • Research Your New Vehicle and Stay Flexible.
  • Find Out The True Ownership Cost.
  • Rent Before Buying.
  • Buy A Car At The Right Time.
  • Scope Out Old Car Inventory.
  • Consider Membership Warehouses.

How do I get the best deal on a new car?

How To Get The Best Deal On A New Car Without Being Taken For A Ride
  1. Assess Your Needs And Budget.
  2. Consider Your Long-Term Costs.
  3. Establish A “Target” Price.
  4. Take An Interest In Financing.
  5. Determine Your Car's Trade-In Value.
  6. Investigate Incentives.
  7. Get Behind The Wheel.
  8. Start A Bidding War.

What time of year is best to buy a car?

The months of October, November and December are the best time of year to buy a car. Car dealerships have sales quotas, which typically break down into yearly, quarterly and monthly sales goals. And all three goals begin to come together late in the year.

How do I find dealer invoice price?


Other good resources include sites such as Edmunds.com, or our own CarsDirect search page. Simply enter details such as the make, model and year, and cost and pricing information will be displayed. You will see the MSRP (the manufacturer's suggested retail price) and the car invoice price.

How do you haggle with a car dealer?

8 Tips for Haggling at a Dealership, According to Insiders
  1. ALWAYS SELL OUTRIGHT.
  2. GET QUOTES BASED ON PROFIT MARGIN.
  3. USE MILEAGE AS LEVERAGE.
  4. EMAIL DEALERSHIPS FOR NEW CAR PRICES.
  5. ALWAYS DEAL WITH MANAGERS.
  6. LEAVING THE LOT DOESN'T ALWAYS WORK.
  7. GET PRE-APPROVED.
  8. ASK FOR REBATES.

How much my car is worth?

The result is a clear picture of what your car is worth, or how much you should pay. You may pay less for a car with an accident, or more for a car without one. Only CARFAX gives you the VIN-specific price for every used car based on its history.

What should you not say to a car salesman?

10 Things You Should Never Say to a Car Salesman
  • “I really love this car”
  • “I don't know that much about cars”
  • “My trade-in is outside”
  • “I don't want to get taken to the cleaners”
  • “My credit isn't that good”
  • “I'm paying cash”
  • “I need to buy a car today”
  • “I need a monthly payment under $350”

What is Costco pricing on cars?

The dealerships pay Costco a fee of between $300 and $500 for each car that is purchased through the program. This is where some people feel the Auto Buying program is a bit misleading.

What is Costco discount on cars?


A Costco representative told Business Insider in 2018 that Costco members saved an average of over $1,000 off the average price of a vehicle when using the program, and members can also get a 15% discount on parts, service, and accessories at participating service centers.

Is it better to put a large down payment on a car?

Putting money down on a vehicle has plenty of advantages. The larger the down payment, the lower your monthly payment will be—and you'll probably get a better interest rate, to boot. A larger down payment also helps you build equity faster and protects you and the lender against depreciation and potential loss.

Can I buy a used car through Costco?

There's an added benefit to buying from the Costco program. If you purchase a factory-certified pre-owned vehicle from one of its participating dealers you can receive a special benefit as a Costco member. You can read all about it at the Costco certified pre-owned website.

Is Carmax really no haggle?

Carmax, for example, has no-haggle pricing, but they make their money on trade-ins and warranty sales. Many no-haggle dealerships make their money on extra fees, financing, warranties, and other costs not directly associated with the vehicle itself.

Can you negotiate a no haggle price?

Yes, not having to haggle for a car is a benefit, and some shoppers are willing to pay extra just so they don't have to negotiate. You may be able to negotiate a lower interest rate or a free oil change if you're not totally happy with the nonnegotiable price.

How much discount can you get on a new car?


An offer of 3-5% over a dealer's true new car cost is a very acceptable offer when puchasing a new car. Although, it's not a huge profit, a dealer will sell a new vehicle for a 3-5% margin any day of the week.

Does the Costco Auto Program Work?

The company claims Costco saves members a lot of hassle and an average of $1,000 off a typical transaction price. It works like this: The Costco auto program does not control the underlying invoice price, and its participating dealers can and do manipulate that price in any number of ways.

What is the best car buying service?

Free Services with Membership
  1. USAA. With the USAA car buying service, members get pre-negotiated prices on new or used cars at dealerships nationwide.
  2. Costco. Costco members have access to discounts on new and used vehicles through the Costco Auto Program.
  3. GEICO.
  4. Consumer Reports.
  5. Other Zag Partners.