Costco – Automotive Retailer?

Everyone knows the wholesale giant Costco as a great place to buy the latest electronics such as flat screen televisions, computers, and printers. They also have deeply discounted jewelry, home goods such as furniture, decorative pieces, baby items, and even clothing. They have the largest bulk food items for discount prices as well as books and toys, but what many don’t realize is that Costco is one of the largest automotive retailers in the market.

Sure, we know we can get discount tires and vehicle accessories at Costco, but most don’t even think about going there when they purchase a new car, truck, or SUV. In fact, Costco is the second largest automotive retailer in nation in the automotive market today. They sold approximately 400,000 cars last year, which is a number that has doubled from 2008.

Many consumers do not like the hassle of haggling over new car pricing when they go to a dealership to purchase a vehicle. This is where Costco comes in. They are known for their no gimmick, buy in bulk business model. They sell quality goods at a low price and they have applied this model to vehicles. Since they have bulk buying power, they can offer set prices on cars, trucks, and SUV’s.

As a Raleigh car dealership pointed out, having a no haggle or bulk price doesn’t mean that it’s going to be the best price or experience for consumers. In fact, it usually isn’t.

Costco doesn’t sell vehicles direct to customers, instead, they partner with an auto buying service as their broker. The buyer, Affinity Auto Group, negotiates the lowest price for their customers. The bonus? Costco doesn’t make a penny on your car purchase. They instead see this service as a perk for their members. Costco offers many perks to its members and being able to add this service makes Costco more valuable.

Dealerships are adapting to this business model too, seeing Costco as a valuable partner in the industry. It makes sense for Costco to want its members to own vehicles, since they are becoming one of the largest gasoline retailers as well. So when you are ready for a new vehicle and are a Costco member, it may pay for you to look into their car buying service to save you money on the bottom line.