Kevin Brasler
Kevin Brasler, executive editor of the nonprofit Consumers’ Checkbook. Washington, DC. Checkbook.org
A Costco membership practically guarantees lower-than-the-regular-retail-store prices on its in-store merchandise. But the company also offers a slew of other perks to its members. Some are highly attractive, while others fall short of the best deal around. Here’s how to sort through those Costco membership deals—from consumer advocate Kevin Brasler.
The basic membership is $65 per year and includes all the perks listed below. The Executive membership costs $130 and includes all the same perks as well as a 2% rebate on most eligible purchases. To recoup the additional $65 for the Executive membership, you would have to spend $3,250 a year at Costco.
Perk | Take It | Consider It | Leave It |
Extended Warranties | X |
|
|
Customer Support | X |
|
|
Tires and Servicing | X |
|
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Entertainment Discounts | X |
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New-Car Deals |
| X |
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Travel Deals |
| X |
|
Home Improvement |
|
| X |
Auto Insurance |
|
| X |
Costco extends the manufacturer’s warranty on electronics and appliances by up to two years. Purchasing extended warranties is seldom worthwhile, but if you can get it for free, take it.
Costco is a great place to purchase tech products because members have access to real people on the phone to help with setup problems and other issues…and that is rare these days.
While Costco’s tires are less expensive, inventory is limited. If you do find the tires you want, though, Costco offers free tire rotation and balancing as well as flat repairs for the life of the tires.
Search the Costco member portal or ask at the information desk for deals on amusement parks, movies and other forms of entertainment.
Another member perk is Costco’s new-car–buying program. Costco works with local dealerships to offer member-exclusive no-haggle discounted pricing on most new vehicles—but you can’t obtain this pricing online. Instead, Costco’s website tells you which dealership to contact, and you have to visit the dealership to obtain a certificate that provides the Costco price for your area. You can just buy the vehicle at that dealership…or you can try to use that pricing as leverage at other dealerships. Costco seems to work hard to ensure its program provides prices that are better than average.
Costco has a members-only travel agency of sorts, with discounts on package vacations, airfares and hotels. But the selection is limited, so your chances of finding a deal on the specific itinerary you have in mind aren’t great. Even when you do get a deal, the discounts are seldom earth-shattering, so you might do better by shopping around.
Sometimes you’ll be approached in Costco by someone asking if you need work done on your home. This is not really a Costco offering but rather a third-party contractor that has paid Costco for permission to market in its stores. If you’re contemplating a home-improvement project, call up several contractors for quotes rather than assuming you’re getting the best deal from Costco.
This also is a third-party insurance company that has a deal with Costco. You usually can find better rates by collecting prices from multiple insurance carriers.
