3-Step Guidance To Shopping for a New or Used Car Through Costco
If you're a Costco member, you already know the warehouse giant is famous for bulk savings and everyday low prices. However, with car prices, maintenance and gas costs (as well as dealership fees) going through the roof, you may want to take a look at the Costco Auto Program if you're shopping for a new car
Costco members can access pre-arranged, no-haggle pricing on new and used vehicles, as well as leases, at participating dealerships across the U.S. as an alternative to slogging through dealer lots. By partnering with a nationwide network of participating dealerships, Costco helps members avoid lengthy negotiations and surprises at the lot, making the buying process faster and more transparent.
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Here's how the Costco Auto Program works, and how members can take advantage in 2026.
Is It Worth It?
So, will the Costco Auto Program really get you a good deal? The answer is potentiall, if you want to save money buying a car without the hassle of negotiating with a salesperson. However, Costco does not have a low-price guarantee.
If the need to get the lowest possible price outweighs the convenience of a hassle-free auto purchase, you might get a better deal outside of the Costco Auto Program. However, if you choose to purchase through the program and have concerns about the dealer's pricing, you can contact the program's member advocacy group to have the offer reviewed.
The Pros and Cons of the Costco Auto Program
Costco does not guarantee the lowest price when you shop through the Auto Program. It offers a hassle-free purchase for a prearranged price. Dealers pay a participation fee to be included in the program to get customers in exchange for providing a discount to Costco members.
However, savvy negotiators may get a better deal without going through the Costco Auto Program. Here are some pros and cons to the program itself:
Pros
Enables Costco members to save money on a car purchase without negotiating with dealership salespeople.
Provides discounts on new and used cars and leases.
Member-only incentives can lead to more savings.
Cons
Choices are limited to dealerships that are part of the Costco Auto Program.
Inventory may be limited.
You might be able to negotiate a better deal on your own.
3 Steps To Using the Costco Auto Program
The Costco Auto Program's preset pricing is fixed specifically to save customers from having to negotiate. If you are that comfortable negotiating, you might be able to negotiate a better deal on your own than the Costco Auto Program.
Whether you're shopping for a new car, a used vehicle or a lease, knowing how to buy a car with your Costco membership can help you keep more money in your pocket while reducing stress. Just follow these simple steps for finding a new or used vehicle:
Go to the Costco Auto Program website and click on "New Vehicles" or "Pre-Owned Vehicles." Here, you can browse available makes and models, read reviews, research safety features, compare specs and view photos. You can also see any manufacturer incentives currently available.
Once you find the right car for your budget, click the "Locate Approved Dealer" link to get connected with a dealership near you. You'll be put in touch with an authorized dealer, whom you can meet in person by making an appointment. These contacts have been trained by the Costco Auto Program to ensure a smooth buying process.
When you meet with the dealer and decide to move ahead with the car purchase, you'll receive a Costco member-only price sheet showing your exclusive price. You may also be able to view the vehicle's invoice and the manufacturer's suggested retail price for transparency — plus any available rebates — so you can see exactly how much you'll be saving.
You can trade in your current vehicle when buying a car through the Costco Auto Program and your trade value will be deducted from the purchase price. You can also include dealer add-ons and an extended warranty at the time of purchase. If you feel like the dealer isn't giving you the best price or you have questions about the amount they're asking for, you can contact the program's member advocacy group to have a professional review the dealer's price, which is a major perk of buying a car through Costco.
Gabrielle Olya and Andrea Norris contributed to the reporting for this article.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.