What Costco's car discount program actually is
Costco does not negotiate car prices for you or give you a discount code to hand a dealer. Instead, Costco has partnered with a third-party service called Costco Travel to connect members with pre-negotiated pricing at participating dealerships in your area. You contact the dealership directly using a referral, and the dealer has already agreed to sell at a set price — usually lower than their advertised price, but not a Costco-exclusive deal.
The service is free to use if you are a Costco member. You do not pay Costco anything extra, and Costco does not take a cut of the sale. The dealership pays Costco Travel a referral fee, which is why they accept lower margins on these sales.
This is different from manufacturer rebates, dealer incentives, or financing offers, which may or may not stack on top of the negotiated price depending on the dealership and the current market. You still negotiate financing, trade-in value, and add-ons the way you would at any dealership.
Key Takeaways
- Costco's car program connects you to dealerships that have agreed to set prices, but you contact and buy from the dealership directly, not through Costco.
- The service is free for Costco members and works through Costco Travel, which you can reach online or by phone.
- Negotiated prices are typically lower than advertised but vary by dealership, vehicle, and current market conditions.
- You still handle financing, trade-in negotiations, and add-ons separately with the dealership.
- The program is available for new cars, used cars, and trucks at participating dealerships, though not all dealers in your area may participate.
How to find a dealership through Costco Travel
Log into your Costco account online and go to Costco Travel. Look for the "Auto Buying Service" or "Car Buying" section — the exact name varies slightly depending on when Costco updates the site. You will enter your zip code and the type of vehicle you want (make, model, year range, new or used).
The site will show you participating dealerships near you, the pre-negotiated price for the vehicle you are looking for, and contact information for the dealership's sales department. Some dealerships list inventory; others ask you to call or visit to discuss what they have in stock at that price point.
You can also call Costco Travel directly at the number listed on your membership card or in your Costco account. A representative can walk you through the same search and answer questions about the program before you contact a dealership.
What the pre-negotiated price includes and excludes
The price shown is the negotiated selling price for the vehicle itself. It typically does not include destination charges (the fee to ship the car from the factory or auction to the dealership), documentation fees, registration, taxes, or dealer add-ons like paint protection or extended warranties.
Destination charges are set by the manufacturer and are the same everywhere, so you cannot negotiate those away. Documentation and registration fees vary by state and dealership. Taxes are calculated on the final sale price and depend on your location.
When you call the dealership, ask them to quote you the total out-the-door price — that is, the pre-negotiated vehicle price plus all fees, taxes, and any add-ons you want. This gives you a real number to compare against other dealerships or to decide whether to move forward.
Financing and trade-in negotiations happen separately
The Costco program sets the vehicle price, but it does not lock in your financing rate or trade-in value. You can bring your own financing (a loan from your bank or credit union) or finance through the dealership. If you finance through the dealership, you negotiate the interest rate and terms the way you normally would.
Trade-in value is also negotiated at the dealership. The pre-negotiated vehicle price and the trade-in offer are separate line items on your paperwork. A lower vehicle price does not mean the dealership will offer less for your trade-in, but it also does not may provide a higher offer.
Before you visit the dealership, get a trade-in estimate from Kelley Blue Book, NADA Guides, or your bank so you know what your current vehicle is worth. This gives you a baseline to push back if the dealership's offer seems low.
What to expect when you contact the dealership
Call or visit the dealership and mention that you are a Costco member using the Costco Travel car buying service. Have the vehicle details and pre-negotiated price from the Costco website ready. The sales team will confirm they participate in the program and that the price is still available for that vehicle.
If they have the exact vehicle in stock, you can schedule a time to see it and test drive. If they do not have that specific model or trim, they will tell you what they do have and whether it falls within the pre-negotiated price range. Some dealerships are more flexible than others about adjusting the price for different trims or options.
The sales process from this point forward is standard: you review the vehicle, negotiate any remaining details (financing rate, add-ons, trade-in), and sign paperwork. The Costco program does not change how the dealership handles the sale itself.
Comparing Costco prices to other routes
The Costco pre-negotiated price is usually competitive with what you would get by shopping multiple dealerships and negotiating hard on your own. It is not always the lowest price available — some dealerships run aggressive sales events or have inventory they need to move quickly — but it removes the guesswork of not knowing what a fair price is.
The real advantage is time. Instead of calling five dealerships and negotiating with each one, you see the price upfront and contact only the dealerships you want to work with. If you are comfortable negotiating and have time to shop around, you might find a better deal elsewhere. If you want a straightforward process and a known price, the Costco program delivers that.
You can also combine the Costco program with manufacturer rebates or dealer incentives if they are running at the time of your purchase. Ask the dealership which incentives explore to the vehicle and the pre-negotiated price.
Membership requirements and program limits
You must be a current Costco member to use the car buying service. The membership level (Gold Star, Executive, or Business) does not matter — all members have access. If your membership has expired, you will need to renew it before you can view pricing or contact a dealership through the program.
The program is available in most states, but not all dealerships participate everywhere. Rural areas and some smaller markets may have limited or no participating dealerships. The Costco website will show you what is available in your zip code, so you can check before you commit to using the service.
Costco also offers a similar service for used cars, though the inventory and pricing structure work differently because used cars vary more widely. The process is the same: search on the Costco Travel site, contact the dealership, and negotiate from there.
Frequently Asked Questions
Can I use the Costco car program if I do not have a trade-in?
Yes. The pre-negotiated price applies whether you are trading in a vehicle or paying cash or financing without a trade-in. The dealership will still try to sell you add-ons and financing products, but the vehicle price itself does not change based on whether you have a trade-in.
What if the dealership says the pre-negotiated price is no longer available?
Prices can change if the vehicle sells, if market conditions shift, or if the dealership's agreement with Costco Travel changes. Ask the sales team what price they can offer for that vehicle now. If it is significantly higher, you can contact another participating dealership or ask Costco Travel to help you find another option in your area.
Does using Costco's car program affect my credit score?
The Costco program itself does not affect your credit. If you finance through the dealership, the dealership will run a credit check, which creates a hard inquiry and may lower your score slightly. This is the same as any car purchase and is separate from the Costco program.
Can I return the car if I change my mind after buying it?
No. The Costco program does not change the dealership's return policy. Most dealerships have a short window (usually three to seven days) to return or exchange a vehicle if there is a mechanical problem, but not for buyer's remorse. Read the dealership's return policy before you sign paperwork.
Is the Costco car program worth it if I am a good negotiator?
If you enjoy negotiating and have time to shop multiple dealerships, you might find a lower price on your own. The Costco program is most useful if you want to avoid the negotiation process, want a transparent price upfront, or are not confident in your negotiating skills. It is also useful if you live in an area where dealerships are far apart or hard to reach.