Costco Connection - April 2007

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MEMBER SERVICES Update

SERVICE UPDATES

Tests for two new services

COSTCO MEMBERS in Northern California can take advantage of the new Small Business 401(k) Plan being tested there. Provided by ShareBuilder, Costco’s online investing service

PRACTICAL TIPS

On the road

NEXT TO YOUR home, your car represents one of your biggest investments. Costco services are available for buying, financing or insuring your vehicle. Here are some tips to help you.

Increase your auto-buying IQ

Arm yourself with these tips when you go to buy and finance a new vehicle.

Zero percent vs. rebate. Special financing from car manufacturers is generally offered for a shorter term, which can make the payment prohibitively high or mean no rebate. Members often do better by arranging for their own financing and taking the rebate.

provider, the program offers sole proprietors or small businesses of up to 100 employees a solution for enrolling in a cost-effective retirement-plan program. With three plans to choose from, depending on the size of the company, features include automatic contributions from paychecks, quarterly rebalancing of investments, loans and hardship withdrawals. Employers will appreciate easy online plan management and simplified business-tax filings.

STOCKDISK

A good offense. Buyers who walk into a dealership armed with low prearranged independent financing are ready to negotiate from a position of power. No discussion of financing will detract from focusing on the bottom line.

• Avoid redundant coverage. You don’t need roadside assistance on your auto policy if another source (such as cell-phone service) provides that service.

Scrutinize the extras. Car dealers make a lot of profit selling extras such as extended war-ranties and protection packages. Expect to be offered these final-minute add-ons. If you’ve done a little research, you’ll know if the price is fair.

• Avoid purchasing high-performance or high-value vehicles.

• Purchase vehicles with advanced safety and security features.

Costco is also testing a roadside assistance program limited to Illinois residents only. Cross Country Automotive Services Inc. designed a Roadside Assistance program to meet the needs of members. Available 24/7 from 20,000 service professionals, services include towing, tire repair, lockout assistance, jump-starts and refueling.

• Get your credit scores. These affect premiums. Do you know yours?

For more information on these programs, visit costco.com and click on “Services.”

Costco can help with your car purchase in two important ways. The Costco Auto Program can deliver a low prearranged price on the car you want from more than 2,000 participating dealers and provides several resources on their Web site, including a calculator that weighs the value of rebate versus special rates.

• Adjust coverage for older vehicles that are paid off. Collision and comprehensive premiums may exceed the value of the vehicle.

• Ask about discounts for group membership, being accident free, etc.

Watch out for hidden fees

• Avoid lapses in coverage. Many carriers charge higher rates following gaps.

You can also arrange independent financing through Costco’s Auto Financing program in advance. Having the Capital One Blank Check^®in hand when buying a car is a major convenience.

• Drive safely. Avoid accidents and speeding tickets.

• Take a defensive-driving course. This earns a discount from some carriers.

For more information on both programs, visit costco.com, click on “Services,” then on “Auto & Home.” (See articles about both programs in the March Online Edition of The Connection.)

• Reduce theft loss by not leaving valuables in your vehicle.

APRIL 1 IS THE usual time for Visa and MasterCard to increase the fee that makes up the largest component of credit-card-processing rates—the interchange fee, which is the charge for clearing processor transactions from the merchant to the card-issuing bank.

• Maintain your vehicle to reduce the risk of accidents.

Lowering your auto insurance bill

One of your biggest bills each year is probably your auto insurance. Ameriprise Auto & Home Insurance suggests several ways to lower that expense.

If Ameriprise Auto & Home Insurance isn’t already your carrier, you might find value in switching now. For more information, call toll-free 1-888-404-5365, or visit costco.com and click on “Services.”

• Increase policy deductibles. This can lower premiums as much as 25 percent.

“Some credit-card processors take advantage of that rate increase to obscure other hidden increases,” says Jay Smith, Costco service director. “But Costco and our provider NOVA pass along only the required interchange increase.”