What the Costco Auto Program Does
The Costco Auto Program is a service that connects Costco members with dealerships that have agreed to offer preset prices on new and used vehicles. You don't buy the car through Costco itself — instead, Costco gives you a list of nearby dealerships and the price they've agreed to offer members, and you go to the dealership to complete the purchase. The program covers new cars, used cars, and sometimes lease options, depending on the dealership.
The main draw is that the negotiation is already done. Instead of walking onto a lot and haggling over price, you know what the dealership has committed to charge Costco members before you arrive. This doesn't mean the price is the lowest possible price in your area, but it does mean you're starting from a known point rather than a blank slate.
Key Takeaways
- Costco members can look up participating dealerships and their preset prices through the Costco website or by calling the program directly.
- The program works with both new and used vehicles, though the number of used cars available varies by dealership and location.
- You still negotiate financing, trade-in value, and add-ons at the dealership — the preset price covers only the vehicle itself.
- The program is free to use as a Costco member, and you can compare prices across multiple dealerships before visiting any of them.
- Costco does not finance the purchase or handle the paperwork — the dealership manages the entire transaction.
How to Find Participating Dealerships and Prices
Start by going to the Costco website and looking for the Auto Program section, or call the Costco Auto Program phone line directly. You'll enter your zip code and the type of vehicle you're interested in — make, model, year range, and whether you want new or used. The system then shows you dealerships within a reasonable distance and the price each one has committed to for that vehicle.
You can see multiple dealerships and compare their prices side by side before contacting anyone. Some dealerships may have the exact model you want in stock; others may need to order it. The website or phone line will tell you what's available and what the timeline looks like. There's no obligation to visit a dealership just because you looked up a price.
What the Preset Price Covers and What It Doesn't
The preset price is the cost of the vehicle itself — the base price before any add-ons, financing, or dealer fees. It does not include destination charges (the cost to ship the car from the factory to the dealership), documentation fees, registration, taxes, or dealer add-ons like paint protection or extended warranties. These items are negotiated separately at the dealership, just as they would be in any car purchase.
Financing terms, interest rates, and trade-in value are also handled at the dealership and are not part of the Costco preset price. If you're trading in a vehicle, the dealership will appraise it and offer you a trade-in value, which you can negotiate. The Costco program straightforward removes the negotiation over the car's base price, not over the entire transaction.
The Dealership Visit and Paperwork
When you arrive at the dealership, bring the information from the Costco program — either a printout or the reference number from the website. Show it to the sales team so they know you're a Costco member using the program. The dealership will honor the preset price for that vehicle, assuming it's still in stock or on order.
From that point forward, the dealership handles everything as it normally would: test drive, financing paperwork, trade-in appraisal, add-ons, and registration. You'll work with the dealership's finance office on your loan or lease terms. The Costco program ends once you've confirmed the vehicle and price; Costco is not involved in the financing, paperwork, or delivery.
New Cars Versus Used Cars Through the Program
The Costco Auto Program includes both new and used vehicles, but the used car selection is smaller and varies widely by dealership. New cars are more common in the program because manufacturers and dealerships have established relationships with Costco and can offer preset pricing more easily. Used cars depend on what the dealership has on its lot at any given time.
For used cars, the preset price still applies if the dealership has that specific vehicle, but you have fewer options to choose from compared to new cars. Some dealerships may have only a handful of used vehicles listed through the program. If you're shopping for a used car, you may find better selection by visiting dealerships directly, though you won't have the benefit of a preset price.
Comparing Costco Prices to Other Shopping Methods
The Costco program is one way to remove negotiation from the car-buying process, but it's not the only way. You can also get quotes from multiple dealerships on your own, use online car-buying services that negotiate on your behalf, or shop through manufacturer websites that show dealer inventory and pricing. The advantage of Costco is that the information is centralized and you can compare multiple dealerships at once without making separate phone calls.
However, the Costco preset price may not be lower than what you could negotiate yourself, especially if you're a skilled negotiator or if you're buying a popular model with high demand. Some dealerships offer their own promotions or incentives that might beat the Costco price. It's worth checking a few other sources before you commit to a dealership, even if you're using the Costco program.
Membership Requirements and Program Costs
You must be a current Costco member to use the Auto Program. There is no additional fee to use the program — it's included as a member benefit. If your membership is about to expire, renew it before you start shopping, because you'll need an active membership to access the program and to show the dealership when you arrive.
The dealership will not charge you anything extra for using the Costco program. The preset price is the same whether you're a Costco member or not; the dealership has straightforward agreed to offer that price to all Costco members. Your only costs are the vehicle price, taxes, registration, and any financing or add-ons you choose.
Frequently Asked Questions
Can I use the Costco Auto Program if my membership is about to expire?
No, you need an active membership to access the program online and to show the dealership. If your membership expires before you complete the purchase, renew it first. Some dealerships may give you a grace period, but it's safer to have an active membership throughout the process.
What if the dealership doesn't have the exact car I want in stock?
Most dealerships can order the vehicle for you, and the Costco preset price still applies to the ordered car. The timeline depends on the manufacturer and current production schedules, which can range from a few weeks to several months. The dealership will give you an estimated delivery date when you place the order.
Can I negotiate the price down further after I show the dealership the Costco preset price?
The dealership has committed to the Costco preset price, so there's little room to negotiate the base vehicle price lower. However, you can still negotiate other parts of the deal: trade-in value, financing terms, add-ons, and dealer fees. Focus your negotiation on those areas rather than the vehicle price itself.
Does Costco help with financing or trade-in appraisals?
No, Costco is not involved in financing, trade-in appraisals, or any paperwork. The dealership handles all of that. You can bring your own financing (a loan from your bank or credit union) or use the dealership's financing options. The dealership will appraise your trade-in vehicle if you have one.
What if I find a lower price at a different dealership?
You can compare prices across all participating dealerships before visiting any of them. If you find a lower price elsewhere, you can choose that dealership instead. The Costco program straightforward gives you access to preset prices; you're free to shop around and make your own choice about where to buy.