How to drive
FOR MANY, buying a new car conjures up locate a participating deal-unpleasant memories. Even if you are familiar ership near you.
with the market, it can be an intimidating and 2. Meet with the autho-frustrating experience. rized dealer contact at the
However, according to Costco members participating dealership.
Dan and Jackie Chaney of Phoenix, Arizona, 3. Select a car and pur-Costco’s Auto Buying Program takes the fear chase it.
and intimidation out of buying a new car. 4. Drive away happy!
Costco’s Auto Buying Program enables Even before the Chaneys
members to get some of the lowest possible called Costco’s Auto Buying
prices on vehicles at more than 2,000 partici- Program, they knew they
pating dealerships across the country. wanted a Honda Civic. They Costco members Dan and
Program employees comparison-shop more arrived at the decision Jackie Chaney saved time
than 1,000 vehicles each month to ensure that through their own research. and money through Costco’s
members are getting an excellent deal. However, many members Auto Buying Program.
According to John Lees, Costco’s Auto Buying use the program’s online
Program director, more than 95 percent of “Car Research” link to deter-the time Costco’s Auto Buying Program mine which car best suits them. This feature name of the local participating dealership and
prices beat competing program prices. provides reviews and road-test articles, set up an appointment with an authorized
Here’s how the Auto Buying Program, details on leasing versus buying, a loan and Costco contact person at the dealership.
which is part of a suite of personal and busi- finance calculator, and tools to help members “When we saw a white Civic on the lot,
ness services Costco offers, works. estimate trade-in values. we decided to go with it,” says Jackie. “Costco’s
1. Visit costco.com, click on “Services,” Because they had already chosen a make price made buying it easy. We showed up at
then click on “Auto Buying,” or call Costco’s and model, the Chaneys simply called Costco’s the dealership at noon, and drove off with our
Auto Program toll-free at 1-800-800-9288 to Auto Buying Program. They were given the new car by 2. It was so easy.”—Will Fifield
According to Rodney Honda, a Costco
member in Hillsboro, Oregon, who recently
purchased a Honda CR-V, the program is easy
to use. “I spent more time at the dealership
going over the new features on the car than I
did signing papers,” Honda says. “The best
part is that Costco’s program actually beat the
best rate my credit union offered.”
Here’s how the Financing Program works.
A uto f inancing
made e asy
1. Visit costco.com, click on “Services,”
then click “Auto Financing & Refinancing,” or
call the program toll-free at 1-888-317-6121.
Get a response within 15 minutes.
2. Once approved, members receive a
Blank Check® from Capital One Auto Finance
in as little time as 24 hours. The Blank Check
locks in the rate for 45 days, but members are
not obligated to use it.
GETTING A GOOD DEAL on auto financing rates though Capital One Auto Finance. For 3. Shop like a cash buyer. —WF
can be confusing and stressful, especially if example, on February 2, 2006, when this arti-you handle financing on a car lot while try- cle was written, Costco Auto Financing
ing to buy a car. There’s a lot to think about: Program loan rates were as low as 5. 14 percent
the purchase price of the car, maybe a trade- for a 36-month, new-car loan. According to
in, dealer incentives such as cash rebates and an independent market research company,
other enticements from manufacturers. If you the national bank average for an auto loan
prearrange auto financing, you have much with identical terms quoted the same day
more flexibility and fewer things to negoti- was 7. 18 percent. So, if you borrowed $20,000
ate when buying a new car. under these terms, the loan through Costco’s
Costco’s Auto Financing and Refinancing Program would save you more than $700
Program offers members discounted loan over the life of the loan.
Costco’s Auto Buying and Auto Financing
& Refinancing programs are personal
Services of the Month. Members who
fund an auto loan through Costco’s Auto
Financing Program during
March receive a $20 Costco
Cash card (Executive
Members receive $40).