The Costco Auto Program is designed to help participating dealerships acquire customers at scale.

While Costco members benefit from simplified access and pre-set pricing, the program’s structure is built around dealer participation. Dealerships choose whether to participate, agree to program terms, and pay to be part of the platform.

This model is different from a brokerage or representation model, where the buyer is the primary client and the service provider works across multiple dealerships to structure and negotiate the transaction on the buyer’s behalf.

The Costco Auto Program connects Costco members with participating franchised dealerships that offer prearranged pricing on eligible vehicles. Costco and its affiliates do not sell vehicles or negotiate individual transactions.

All vehicles arranged for sale through the program are:

• Subject to availability

• Sold by participating franchised dealers

• Priced according to terms prearranged with those dealers

According to Costco Auto Program disclosures, participating dealers pay a participation or marketing fee to be included in the program, which is operated by Affinity Development Group.

Final pricing, incentives, financing, trade-ins, and transaction terms are determined by the participating dealership. Actual savings may vary based on the vehicle purchased, dealer, and location. Costco, Costco Wholesale, Affinity Development Group, and their affiliates make no implied guarantees or warranties regarding individual transactions.

From a dealer’s perspective, the Costco Auto Program operates as a program through which participating dealers receive customer referrals, rather than a negotiated sales partnership.

Dealers voluntarily enroll in the program and agree to offer Costco members pre-arranged pricing on eligible vehicles. According to Costco Auto Program disclosures, participating dealers pay a participation or marketing fee to be included in the program, which is administered by Affinity Development Group, the program’s operating partner.

Once a customer is referred to a participating dealership:

• The dealer controls vehicle availability

• The dealer applies pricing according to the program’s guidelines

• The dealer manages incentives, financing, and trade-ins

• The dealer determines the final transaction terms

Costco and its affiliates do not sell vehicles, negotiate individual transactions, or intervene in deal outcomes. Their role is limited to facilitating introductions between Costco members and participating franchised dealers under the program’s established terms.

For a more detailed explanation of how the Costco Auto Program works in practice, see our full analysis: see our full analysis: Is the Costco Auto Program Good?

It may be less effective when:

• Inventory is limited or highly specific

• Lease structure materially affects the deal

• Trade-in value is an important variable

• Buyers want to compare multiple dealerships

In these cases, pre-set pricing can restrict flexibility.

No. Trade-ins, lease terms, incentives, money factors, and fees are negotiated directly between the buyer and the dealership.

The Costco Auto Program does not structure lease terms, evaluate trade-in values, or negotiate transaction details beyond the pre-set vehicle pricing. Buyers are responsible for assessing whether the trade-in value, lease structure, and final numbers align with their goals.

For buyers who are comfortable managing these elements independently, this may be acceptable. For others, these components can meaningfully affect the overall cost and experience.

CarOracle and the Costco Auto Program serve very different roles in the car-buying process.

The Costco Auto Program is a referral and pricing platform. It connects Costco members to a participating dealership that has agreed to offer pre-set pricing on specific vehicles. From there, the transaction — including negotiation, trade-ins, lease structure, financing, and add-ons — is handled directly between the buyer and the dealership.

CarOracle is a California-licensed auto broker and concierge service. Rather than referring buyers to a single dealership, CarOracle represents the buyer and manages the process across multiple dealerships. This includes vehicle sourcing, pricing verification, negotiation, trade-in strategy, lease structuring, and transaction coordination.

The key difference is representation. Costco provides access to participating dealers. CarOracle acts as an advocate for the buyer throughout the entire transaction.

No. The Costco Auto Program provides pre-set pricing established by the participating dealership, but it does not negotiate on a specific buyer’s behalf.

Elements such as trade-in value, lease structure, money factor, incentives, fees, and add-on products are handled directly between the buyer and the dealership. Costco does not participate in or oversee those components of the transaction.

For buyers whose deal is straightforward and fits within the pre-set pricing framework, this may be sufficient. When variables like inventory availability, lease structure, incentives, or trade-ins materially affect the outcome, buyers are responsible for navigating those elements on their own.

Yes. CarOracle works statewide with a network of dealerships, allowing offers to be compared and leveraged. This approach provides flexibility when inventory, timing, or pricing varies by location.

CarOracle charges a transparent service fee, while the Costco Auto Program does not. However, overall cost outcomes may differ based on pricing, incentives, trade-in value, and deal structure. Comparing total transaction results is often more meaningful than comparing service fees alone.

Yes. In many cases, outcomes are influenced by:

• Lease structure and residual strategy

• Incentive and rebate application

• Trade-in negotiation

• Identification and evaluation of fees or terms that may affect total cost

These factors can materially impact total cost of ownership.

CarOracle provides active buyer representation from vehicle selection through delivery. The Costco Auto Program does not represent buyers during negotiations or intervene in transaction-specific issues; those matters are handled directly between the buyer and the dealership.