3 Ways Costco Can Save You Money on Car Ownership -- Besides Cheap Gas

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When it comes to Costco deals, you probably think mostly about the groceries and household items inside of the warehouse club. Or maybe you dream about Costco's famous food court, where you can buy a checking account–friendly hot dog and soda combo for $1.50 .

But if you're a car owner, or you want to become one, Costco has other money-saving opportunities for you as well.

If you know anything about Costco, you most likely already know that its gas is cheap and high quality. But the bargains go beyond the discounted fuel. Here are three other ways Costco can save you money on vehicle ownership.

1. Buying a car

While you won't find brand new cars inside of your warehouse club, Costco still offers members awesome deals on the purchase of a vehicle. Through its Costco Auto Program, the company partners with dealers and manufacturers to provide specials savings opportunities, including:

• Exclusive Costco member pricing

• Manufacturer incentives

• Limited-time vehicle specials

As of mid-May 2024, for example, Costco is currently offering:

• A $1,000 member-only incentive on the purchase of select 2024 or 2025 Volvo SUVs, hybrid-electric vehicles, and luxury electric vehicles

• $1,000 member-only incentives on select Cadillac or Chevrolet models

• $2,000 in member incentives on Polestar 2's luxury electric vehicle

There are other offers as well, including manufacturer incentive deals, and Costco periodically changes the promotions it runs so there will be opportunities to save on other vehicles in the future.

Reducing the price of a car or SUV by thousands of dollars is a really great perk of Costco membership. Plus, your shopping experience will be a lot more pleasant when you get a pre-arranged discounted member price rather than having to haggle at the car dealer.

2. Replacing tires

Costco offers tire replacement services, and when The Ascent compared costs, we found prices at Costco typically came in lower than Sam's Club for the same tires. Buying tires at Costco also comes with other benefits, including:

• Free installation

• Five years of road hazard protection

• Free tire balancing

• Flat tire repairs

Generally, you'll need to replace your tires at least once every six years, but the specifics of how often you need to act will depend on how much you drive. Still, being able to save money and get great service is an awesome opportunity for Costco members.

3. Auto insurance

Costco has partnered with CONNECT to offer members yet another opportunity to save. CONNECT, powered by American Family Insurance, offers home and auto insurance coverage at discounted prices to warehouse club members. And Costco reports that members who switched their auto coverage saved an average of $595.86 in premiums during the first year they made the change.

CONNECT received above-average customer service scores on J.D. Power's 2023 U.S. Auto Insurance survey, which means vehicle owners who sign up for this coverage may be able to pay a lot less for quality protection.

Costco members who own a vehicle should consider taking advantage of these three perks to get the most value from being a warehouse club shopper. If you aren't a Costco member but do own a vehicle, you may want to think about joining. The Gold Star membership costs just $60 a year, and these car-specific benefits alone may more than justify that price.

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We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Christy Bieber has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale. The Motley Fool has a disclosure policy.