Leasing a car might be a good option if you don’t want to be tied down by long-term financing contracts or worry about depreciation. If you’re a Costco member, you may be wondering whether you can lease a car through Costco’s Auto Program. This post will shed light on how the program works, the benefits of leasing, and how to go about the car leasing process, among others.
Costco has a car lease program through its Costco Auto Program, available to members who live in the US and Puerto Rico. The retailer offers the program in partnership with more than 3000 car dealerships. According to Costco, the authorized dealers in the lease program provide the same “members only” price for car leasing as they do in the vehicle purchase program.
What Type of Cars Does Costco Lease?
Costco Auto Program offers a wide selection of vehicles, including:
- Sports cars
- Luxury vehicles
How Much Does It Cost to Lease a Car at Costco?
The cost of leasing a car through the Costco Auto program depends on the vehicle’s make, model, and trim level. The price also depends on the lease period you want. You can lease a car for any period between 24–48 months.
When leasing, you’ll pay a part of the vehicle’s original value depending on how long you use the car. For example, if you hire a car valued at $36,000 for two years, the vehicle’s price may have depreciated to $28,000. In this case, you’ll pay the difference of $8,000 plus any interest over the two years.
You’ll also need to pay an additional security deposit plus other fees. Credit requirements for car leasing are usually higher than when buying.
After selecting the car you want, the authorized dealer will show you the Costco member-only price sheet. The price sheet has a breakdown of the charges, including any discounts or additional fees. Should you have any issues with the prices given by the dealer, Costco’s Member Advocacy Group can help deal with any concerns.
How Does the Costco Auto Program Work?
The Costco Auto Program is for Costco members interested in purchasing or leasing a vehicle. Members can use the program to buy or lease a new car, truck, van, or SUV at any participating dealerships.
The Costco Auto program lets you buy or lease a new or used vehicle. Costco members also get a 15% discount on vehicle parts and up to $500 off on service at eligible centers in the US. You also get limited-time promotions and other manufacturers’ incentives.
There are no membership fees or additional costs associated with the Costco Auto Program beyond what you typically pay when buying or leasing a car. The program is run by Affinity Auto Programs Inc. – a company specializing in creating buying experiences for different brands.
When purchasing or leasing a car through the program, you’ll search through an online database of vehicles available to the participating dealers. You can choose any car depending on the model, make, trim, or color you like.
After choosing a car, Costco will connect you to a dealer where you can negotiate with the salesperson in charge. Costco and the dealers first negotiate prices before being offered to you.
Benefits of Leasing a Car at Costco
- No down payment: you won’t have to put down any money upfront when you sign up for a lease at Costco. Your monthly payments will cover all costs associated with leasing your chosen vehicle, including taxes and fees.
- Saves you money: with a lease, you pay less than you would if you bought the car. Instead of paying for depreciation and repairs, you pay for using the vehicle. You can also opt for a shorter lease term than the length of time it takes to pay off the car—which means lower monthly payments.
- The Costco Auto Program only chooses dealerships it trusts: the program only works with dealerships that have earned their trust by offering excellent customer service and low prices. Its mission is to provide members with superior service at fair prices and be satisfied with their purchases.
- No worries about resale value: if you decide that leasing isn’t right for you, there’s no problem with returning the vehicle at any time during its lease term. You can walk away without worrying about how much money you’ll lose on resale value.
- It saves you time: you don’t have to worry about going through all the paperwork required by other dealerships or even shopping around for lenders and insurance providers. Instead, all you need to do is fill out an online application. Costco will then connect you with a participating dealer, where you’ll negotiate the lease terms with a salesperson.
- Costco Auto Program provides after-sales service: the program will provide you with some perks of buying a new car, such as free maintenance and roadside assistance.
- Offers low monthly payments: Costco helps its members find the right car at an affordable price. Leasing terms range from 24 months to 48 months, with most leases lasting between 24 and 30 months. Interest rates vary depending on credit score and other factors.
How to Lease a Car Through Costco
To lease a car through the Costco Auto Program, you need to use the Costco website or call center to get a participating dealer. Here’s how to hire a car through Costco.
- Visit the Costco Auto Program web page and enter your zip code to continue.
- Click on New to choose the car you want. You can browse the list of available vehicles by make or by type. If you wish to search by make, you need to enter your preferred manufacture year, the make, and model and then click on Get started. You can also choose the vehicle type, such as sedans, SUVs, convertibles, and so on.
- Choose any additional custom features that you need on the vehicle, such as the trim, color, and so on. Click on Locate dealer.
- Provide your details such as your name, phone number, type of Costco membership (whether Gold star, Executive, or Business), membership number, and email address
- Click on Locate dealer.
- Once you locate a dealer, you’ll need to go there and talk with the authorized contact. If the dealer doesn’t have the vehicle you chose, they may get it from another dealership or order from the manufacturer.
- The authorized contact will give you a member’s-only price sheet that shows the price of the car you have chosen. After reviewing the price, you can decide to lease the vehicle under the terms given or haggle to get better terms. If you don’t like the terms offered, there’s no obligation to take the car. You can always look for another authorized Costco dealer that offers better prices.
Costco Lease Car Program Reviews
Is the Costco Auto Program a good deal?
The Costco Auto Program offers a wide range of vehicle options to fit your needs. With this program, you can choose the type of car that fits your lifestyle and budget best. You’ll also have access to great incentives when applying through the program.
For example, you get special member rates on your vehicle purchase or lease without hidden fees or surprises. You’ll also receive extra discounts on items like tires and other products related to car maintenance or repairs.
Does the Costco Auto Program really save money?
The Costco Auto Program offers two ways to save money on vehicles:
Dealer cost savings: Members get access to special pricing from participating dealerships, which are usually lower than what you’d find at other dealerships.
Savings on parts & services: When you buy parts or services for your car or truck at any authorized repair shop in the US, you’ll get up to 15% off on parts and $500 off on services.
As with any other business that you do business with, it’s essential to know what others are saying about it. Costco has a website where customers can leave reviews and comments about their experiences with the car lease program. The program reviews are overwhelmingly positive, but there are some negative ones.
Here are some excerpts from those reviews:
Is the Costco Auto Program price negotiable?
You cannot negotiate vehicle prices in the Costco Auto Program. The prices offered have already been negotiated between Costco and the dealers and are final.
Do Costco members get discounts on car rentals?
Costco members get discounts on car rentals through Costco travel. Under the program, executive members earn a 2% discount per annum, and there are no cancellation fees.
Which is better – Sam’s Club or Costco Auto Program?
Overall, the two retailers offer similar auto programs with the same perks, such as saving on parts and services. However, Sam’s club tends to have better savings when comparing its vehicle prices with the Manufacturer’s Suggested Retail Prices (MSRP).
Does Costco lease used cars?
Costco doesn’t lease pre-owned vehicles. However, the company does sell new and used cars, trucks, and SUVs through the Costco Auto Program.
You can lease cars through the Costco Auto Program for any period between 24–48 months. Costco offers car buying and leasing services through over 3000 certified dealers across the US.
The Costco Auto Program offers competitive “members-only” prices that Costco negotiates with the dealers beforehand. You also save 15% on parts and up to $500 on services. To qualify under the program, you must be a Costco member.