What Costco's auto program does and doesn't do
Costco's auto purchase program is a member benefit that connects you with dealerships in your area that have agreed to offer preset pricing on vehicles. Costco does not sell cars itself, finance them, or may provide you a deal — it acts as a middleman that has negotiated discounts with participating dealers and provides you with their contact information and pricing details.
The program covers new cars, used cars, and trucks. You search for the vehicle you want on Costco's website, see what price the program has negotiated with local dealers, and then contact those dealers directly to complete the purchase. The dealer handles the financing, trade-in, paperwork, and delivery the same way any other dealership would.
This is different from buying a car on your own: instead of walking onto a lot and negotiating from scratch, you arrive with a preset price that the dealer has already committed to. You still negotiate other details like trade-in value, add-ons, and financing terms, but the base vehicle price is set.
Key Takeaways
- Costco's auto program shows you negotiated prices from dealerships near you, but you contact and buy directly from the dealer, not from Costco.
- You must be a Costco member to use the program, and membership status is verified when you contact the dealer.
- The program covers new vehicles, used vehicles, and trucks from most major manufacturers, though inventory and participating dealers vary by location.
- The preset price covers the vehicle only — you still negotiate financing, trade-in value, warranties, and other add-ons with the dealer.
- You can use the program online to find prices and dealer contact information, then handle the entire purchase conversation by phone or in person.
How to find a vehicle and see the negotiated price
Start by going to Costco.com and logging into your member account. Look for the auto program link, usually labeled "Auto Buying Program" or similar. You will enter your zip code to see which dealers near you participate in the program.
Search for the specific vehicle you want — make, model, year, and trim level. The program will show you the negotiated price that Costco has arranged with each participating dealer in your area. This price is fixed; the dealer cannot raise it. You will also see the dealer's contact information, hours, and sometimes reviews from other Costco members who bought there.
Write down the price, the dealer's phone number, and your member number. You will need your member number when you call the dealer to confirm you are a Costco member and therefore may have access to to the program price.
What happens when you contact the dealer
Call or visit the dealership and tell them you are a Costco member using the auto program. Provide your membership number. The dealer will verify your membership status — they can do this when ready through Costco's system. Once verified, they will confirm the preset price you saw online.
From this point forward, the purchase works like any other car sale. You can negotiate the trade-in value of your current vehicle, discuss financing options, add warranties or protection packages, and arrange delivery. The dealer will not negotiate the base vehicle price — that is locked in — but everything else is open to discussion.
The dealer handles all paperwork, title transfer, registration, and financing. If you are financing through the dealer, they will present loan terms. You can also bring your own financing (a bank loan or credit union loan) and pay cash, which sometimes gives you more negotiating power on the final price.
Membership requirements and what it costs
You must hold an active Costco membership to use the auto program. This includes Gold Star (standard), Executive, or any other active membership tier. The membership itself costs money — Gold Star membership is typically around $60 per year, though prices vary by region and membership level — but the auto program discount is included at no extra charge once you are a member.
The program does not charge you a separate fee to use it. Costco makes money by negotiating volume discounts with dealerships; the dealers agree to lower prices in exchange for the volume of Costco members they receive. You pay only what you negotiate with the dealer.
Your membership must be active and in good standing when you contact the dealer. If your membership has lapsed, you will need to renew it before the dealer can verify your status and honor the program price.
Comparing the program price to other options
The Costco auto program price is usually competitive with what you could negotiate on your own, but it is not automatically the lowest price available. Some dealers offer better deals during sales events, manufacturer incentives, or clearance periods. The program price is a may provide starting point, not a promise that you cannot do better elsewhere.
Before you commit, check what the same vehicle costs at other dealerships in your area, especially if there is a current manufacturer rebate or dealer promotion running. You can also check online pricing tools like Edmunds or Kelley Blue Book to see what other buyers in your region are paying. If another dealer is offering a significantly lower price, you can sometimes use that as leverage with the Costco program dealer, though they are not required to match it.
The real advantage of the program is certainty and time savings: you know the price before you walk in, which eliminates the back-and-forth haggling over the base vehicle cost. For many people, that is worth more than chasing a slightly lower price elsewhere.
Used vehicles and certified pre-owned cars
Costco's auto program includes used and certified pre-owned vehicles, not just new cars. The program works the same way: you search for a used vehicle, see the negotiated price, and contact the dealer to complete the purchase.
Used vehicle pricing is less standardized than new car pricing, so the program's value is somewhat different. The dealer has already agreed to a price for that specific vehicle (by mileage, condition, and history), but you should still have the car inspected by an independent mechanic before you buy. The preset price does not include an inspection, warranty, or any may provide about the vehicle's condition — that is between you and the dealer.
Certified pre-owned vehicles come with the manufacturer's warranty and have passed the dealer's inspection, so they carry more assurance than a regular used car. The Costco program price for a CPO vehicle is still negotiable on financing and add-ons, just like a new car.
What the program does not cover
The Costco auto program does not arrange financing, insurance, or extended warranties. The dealer will offer financing options, but you are free to bring your own loan from a bank or credit union. You will need to arrange auto insurance separately through an insurance company — Costco does not provide this, though some Costco members use Costco's insurance referral service to compare quotes.
The program does not may provide approval or a specific interest rate. Your credit score, income, and debt-to-income ratio determine what financing terms you may have access to for, just as they would at any dealership. The dealer will run a credit check and present loan options based on your creditworthiness.
The program also does not cover vehicle maintenance, repairs, or roadside information after the purchase. Those are separate services you would purchase from the dealer, an independent shop, or a third-party provider.
Frequently Asked Questions
Do I have to buy from a Costco program dealer, or can I use the price at any dealership?
You can only use the program price at a dealership that has agreed to participate in Costco's auto program. Other dealerships will not honor the Costco price. The program shows you which dealers near you participate, so you know your options before you start.
Can I use the program if my membership is about to expire?
Your membership must be active and current when you contact the dealer. If it expires before you call, you will need to renew it. The dealer verifies your membership status at the time of purchase, not when you first look up the price online.
What if the dealer's inventory doesn't have the exact vehicle I want?
The dealer can often order the vehicle you want and explore the program price to it. Call the dealer and describe the exact configuration — color, trim, options — and ask if they can special-order it under the Costco program price. Most dealers will do this, though it may take a few weeks for the vehicle to arrive.
Can I negotiate the Costco program price down further?
The base vehicle price is fixed and not negotiable — that is the point of the program. However, you can negotiate everything else: trade-in value, financing terms, warranties, add-ons, and delivery fees. Some dealers may also offer additional discounts if you are a repeat customer or if you buy multiple vehicles.
Does the program work for leases, or only purchases?
Costco's auto program is for purchases only. It does not cover vehicle leases. If you are interested in leasing, you will need to negotiate directly with the dealership outside the program.