Costco offers a car buying service through a third-party broker, not discounts on vehicles themselves
Costco does not negotiate prices with dealerships or offer percentage discounts on car purchases. Instead, Costco members can use Costco Travel's Auto Buying Program, which connects them to a network of dealerships that have agreed to sell at pre-negotiated prices. The program is run by a company called Affinity, which handles the referrals and dealer relationships. You still buy from the dealership — Costco is the middleman that arranges the introduction and the price floor.
The service is included with your Costco membership at no extra cost. You access it through the Costco Travel website or by calling the Auto Buying Program phone line. A Costco representative will ask what vehicle you want, then connect you with a participating dealer in your area. The dealer quotes you a price based on the pre-negotiated agreement, and you proceed with the purchase as you would at any dealership.
The actual savings depend on the vehicle, the dealer, and the market. Costco does not publish average discounts, and the amount you save compared to walking in off the street varies. Some members report savings of a few hundred dollars; others report little difference. The program's main value is that you skip the negotiation step — the price is already set — rather than that you receive a specific percentage off.
Key Takeaways
- Costco's Auto Buying Program connects you to dealerships with pre-set prices, but you purchase the vehicle directly from the dealership, not from Costco.
- The service is free to Costco members and available through Costco Travel's website or phone line.
- Savings vary by vehicle and dealer; Costco does not may provide a specific discount amount.
- You still handle financing, trade-ins, and paperwork with the dealership as you normally would.
- The program covers new and used vehicles at participating dealers in your region.
How to access the Costco Auto Buying Program
Start by logging into your Costco Travel account on Costco.com. If you do not have a Costco Travel account, you can create one using your membership number. Look for the Auto Buying section, usually listed under travel services. You will enter the make, model, and year of the vehicle you are interested in, along with your zip code.
Costco will then match you with a participating dealer near you. A Costco representative may call or email you with dealer contact information and the pre-negotiated price for that vehicle. You then contact the dealer directly to schedule a time to see the car and complete the purchase. Some dealers will also reach out to you first, depending on their process.
Alternatively, you can call the Costco Auto Buying Program phone line directly. A representative will walk you through the same process over the phone and provide you with dealer information. This route can be faster if you prefer to speak with someone rather than navigate the website.
What vehicles and dealers are included
The program covers both new and used vehicles from most major manufacturers — Ford, Toyota, Honda, Chevrolet, BMW, and others. Coverage varies by region, so not every make and model may be available through a participating dealer near you. Used vehicles are typically recent model years, usually within the last five to seven years, though this varies by dealer inventory.
Participating dealers are independent franchises and used-car retailers that have signed agreements with Affinity. Costco does not own or operate these dealerships. The network includes thousands of dealers across the United States, but availability depends on your location. Rural areas may have fewer participating dealers than urban or suburban regions.
You can see which dealers participate in your area before you commit to using the program. The Costco Travel website lists dealers by zip code, so you can check whether the dealerships you prefer are part of the network.
How the pre-negotiated price works
The price Costco arranges is a fixed amount for a specific vehicle at a specific dealer. It is not a discount off the manufacturer's suggested retail price (MSRP) — it is the actual price the dealer has agreed to sell that vehicle for. The price typically includes the base vehicle and standard features but may not include add-ons like extended warranties, paint protection, or dealer-installed accessories.
Once you have the pre-negotiated price, you can still negotiate with the dealer on other terms: trade-in value, financing rate, warranties, or add-ons. The Costco price is the starting point for the vehicle itself, not a ceiling on the entire deal. Some dealers are more flexible on these other items than others.
The price does not change based on demand, market conditions, or how long you wait. However, if the specific vehicle sells before you contact the dealer, you will need to choose a different car or wait for another one to arrive at that dealership.
Financing, trade-ins, and paperwork
Costco arranges the price, but you handle financing directly with the dealer or your own bank or credit union. The dealer will offer you financing options, or you can bring a pre-approved loan from your lender. The interest rate and terms are between you and your lender, not part of the Costco arrangement.
Trade-in value is also negotiated with the dealer. Costco does not set or influence the trade-in offer. You can shop the trade-in value separately if you want — some dealers offer more than others for the same vehicle — but the Costco program does not prevent you from doing so.
All paperwork, title transfer, registration, and delivery happen at the dealership. Costco's role ends once you are connected to the dealer. You are responsible for reviewing all documents, understanding the terms, and ensuring everything is correct before you sign.
Comparing Costco's program to other buying services
Several other membership and discount programs offer similar car-buying services. AAA members can use AAA's Preferred Dealer Program, which works similarly to Costco's — you get connected to dealers with pre-set prices. USAA members have their own buying service. Some credit unions also offer car-buying programs for members.
The main difference between these programs is the dealer network and the price floor. Costco's network is large, but it may not include every dealer in your area. AAA's network is different, and USAA's is limited to USAA members. If you belong to multiple programs, you can check prices through each one and see which offers the better deal for the specific vehicle you want.
Online services like TrueCar and Edmunds also show dealer prices in your area, though they do not negotiate on your behalf the way Costco does. You can use these as a comparison point to see whether the Costco price is competitive.
Limitations and what the program does not cover
Costco's program does not cover luxury brands like Ferrari or Lamborghini, and coverage for high-end brands like Porsche or Maserati is limited. It also does not cover commercial vehicles or fleet purchases. If you are buying a car for a business, you will need to work directly with dealers.
The program does not may provide that you will find the exact vehicle you want in your area. If a dealer does not have the model and color you prefer, you may need to wait for one to arrive, special-order it, or choose a different dealer. Costco cannot force a dealer to stock a particular vehicle.
Costco's price does not include destination charges, dealer documentation fees, or taxes and registration. These are added on top of the pre-negotiated price, just as they would be at any dealership. Ask the dealer upfront what additional fees will be charged so you understand the total cost.
Frequently Asked Questions
Do I need a Costco membership to use the Auto Buying Program?
Yes, you must be a current Costco member to access the Auto Buying Program. The program is included with your membership, but you cannot use it without an active membership card. If your membership has expired, you will need to renew it before you can proceed.
Can I use the program to buy a car for someone else?
You can use the program to find a vehicle for someone else, but the person buying the car will typically need to be present at the dealership to sign paperwork and complete the purchase. Some dealers may allow you to arrange the price on behalf of someone else, but policies vary. Contact the dealer directly to ask about their process.
What if I find a better price at a different dealership?
You are not locked into the Costco price. If you find a lower price elsewhere, you can buy from that dealer instead. The Costco program is meant to save you time and negotiation effort, but it does not prevent you from shopping around. Some people use Costco's price as a baseline to compare against other dealers.
Does the Costco price include warranties or service packages?
The pre-negotiated price covers the vehicle itself. Extended warranties, service packages, paint protection, and other add-ons are typically sold separately by the dealer. You can decline these or negotiate their price as you would at any dealership. Ask the dealer to itemize what is and is not included in the Costco price before you commit.
How long does the buying process take after I contact the dealer?
That depends on the dealer and your readiness to purchase. Once you contact the dealer, scheduling a test drive and viewing the vehicle usually takes a few days. The actual purchase process — paperwork, financing, and delivery — typically takes one to three days, though it can be faster or slower depending on the dealer's workload and whether you need time to arrange financing.