Buying a Car Through Costco, Explained

This is a guide on buying a car through Costco Auto, as well as how to buy car insurance with Costco. Read this article to learn how to take advantage of Costco savings for a new or used car.
Written by Nicholas Wilson
Reviewed by Carrie Adkins
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Costco is primarily a wholesale grocery store, but it also offers a lot of other services. Two of these services are the ability to purchase cars and
car insurance
.
The process is not much different than
buying a car
with any other seller, but you should pay attention to the following steps all the same.
Here's a guide on how to buy a car through Costco Auto and get
Costco insurance
.
And if you want to look for car insurance options outside of Costco to make sure you get the best coverage deals, try car insurance broker
Jerry
. A licensed broker, Jerry will search for quotes from more than 50 carriers to make sure you're getting the best deal.
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How to buy a car through Costco

Step 1: Visit Costco’s website. Specifically, you should head to the
Auto Program
section.
Step 2: Click on "Locate a Dealer". By doing so, you will be directed to an external site.
Step 3: Enter your ZIP code. You should see a place to enter your ZIP code in the center of the page.
Step 4: Choose the type of car you are looking for. There are a few ways you can search for a car.
You can search by a specific year, make, and model, you can search by price, or you can search by body type, depending on what point of your car search you are in. So if all you know is that you want a car, you can narrow down your options a bit through the different search possibilities.
Step 5: Locate a dealer. Once you have a car selected, the website will prompt you to locate a dealer in your area.
At this point, you’ll be asked for your Costco membership information along with some identifying details, such as your name and email address.
Step 6: Go to the dealer. Once you have located a nearby dealer, you can visit the dealership to talk about your car.
Remember, you are not obligated to buy, and you may even be able to negotiate a bit to get a lower price than you originally expected. There is no reason to treat this car-buying experience any differently than you normally would, so make sure to get your money’s worth.
MORE: What credit score is needed to buy a car?

Buying car insurance at Costco

Step 1: Visit Costco’s website. Go to the homepage and enter "insurance" in the search bar, or navigate the page until you find another link to shop for auto insurance.
The link should send you to an external webpage for American Family Insurance, which is the company affiliated with Costco.
Step 2: Get a quote. Getting a quote is always a smart idea before buying a policy, even if you have heard nothing but great things about a company and its prices.
To get a quote, you’ll first need to enter your zip code in the above web page, making sure you’ve selected "auto" insurance.
You’ll then be asked to go through a handful of pages to enter all your identifying information. Provide information about who you are and where you live, followed by the details of your car, and then followed by extra information about the drivers listed on the policy. You’ll be prompted to finalize these details at the end.
Once all the above information is provided, you should receive a quote for the plan you want.
Step 3: Shop around. You could be really pleased with the quote you get, but don’t be afraid to shop around, either.
You could find a
better price
elsewhere, and you may even be able to use that information to negotiate. It’s no fun to make a purchase, only to find you could have saved a lot of money with just a little extra effort.
Jerry is a personal insurance broker that lives in your pocket. But don’t worry about buying tiny office furniture, Jerry is an app. Once you download Jerry, just answer a handful of questions that will take you roughly 45 seconds to complete and you’ll immediately get car insurance quotes for coverage similar to your current plan. Jerry customers save an average of $879 a year.
MORE: How to estimate car insurance before buying a car

FAQs

Can you buy used cars through Costco?

Yes, Costco's Auto Program offers both used and new car options.

Am I really buying a car through Costco?

Not exactly. You're buying a car at a separate dealership. However, you're still getting great prices through the Costco Auto Program, and any dealership that Costco partners with will have a trained member on staff who understands how the Auto Program works.
Buying a car and car insurance at Costco is not a difficult process, and if you have a Costco membership, you could even save some money. If you follow the prompts on the website and the above steps, you’ll be well on your way to a new car and the insurance to go with it.
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