3 Reasons You Shouldn’t Buy a Car From Costco
Written by
Justice Petersen
Edited by
Chris Cluff
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Costco is a warehouse retailer that offers more than just bulk groceries that fit within your budget. Along with its in-store pharmacy services, cafeterias and a wide array of goods, Costco also has its Costco Auto Program.
Through the program, shoppers can purchase a car with Costco’s straightforward buying process. Costco works with car dealerships in the area, and the program’s most defining feature is that it provides a simplified buying experience and cars with discounted, haggle-free prices.
However, while there are many perks to the Costco Auto Program, there are also several reasons frugal shoppers may want to avoid buying a car through Costco. Here are the reasons purchasing a car through Costco’s program might not be the best financial decision.
Limited Options
One of the cons of buying a car through Costco is the limited availability and selection of cars. The Costco Auto Program allows only one dealer per brand per geographical area. Therefore, your options for what’s available at the designated dealership are limited. While you could reach out to a dealership that has your desired car to send it to a dealership in your area that is partnered with Costco, this means you would have to wait for the car you want.
No Negotiation
While many customers who don’t like to negotiate prices would appreciate the Costco Auto Program for its efficiency and haggle-free process, others who want to try and negotiate a price would not enjoy Costco’s program. Cars sold through Costco already have a set price, so they’re nonnegotiable. Because of this, there’s no way of knowing whether you could’ve bought the same car for a cheaper price at a different dealership after some negotiating.
Potential Maintenance Expenses
When you buy a car through Costco, you are still technically buying it from the dealership the car came from. Therefore, if you take your car to the dealership you bought it from to have any services done, that dealership may charge premium prices that are not set by Costco. Since these car dealerships pay Costco a monthly fee to be part of the program, some believe these service prices are how the dealerships make back their money.
How To Know If Costco’s Program Is for You
For those who prefer a simpler car-buying process or know exactly what car they’re looking for, the Costco Auto Program may be a good option. However, it’s worth doing research beforehand to ensure you get the best deal. For some, the Costco Auto Program might serve as a good starting point on their journey toward buying a new car.
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