Costco is becoming one of America's favorite places to buy a car thanks to one huge perk


costco cars


People fill up their tanks with gasoline at a Costco Gas Station in Carlsbad, California

Costco's power in the auto industry is growing.

The warehouse retailer sold 465,000 vehicles through partnerships with auto dealers in 2015, a 16.8% increase from the previous year.

That's not far behind the No. 1 auto retailer in the US, AutoNation, which sold 533,000 vehicles in 2014.


Costco has one major perk that traditional car dealerships lack: fixed prices. That means customers can skip the bargaining and upselling that is expected at traditional auto dealers.

The company sells cars through 3,000 dealerships that offer a "streamlined buying experience" to Costco members across the US.




Costco also announced that members bought or leased 58,000 vehicles this holiday season, a 34% increase from the previous year's GM Holiday Sales Event. More than half of the people who purchased vehicles said they switched to a General Motors brand such as Chevrolet, Buick, or Cadillac due to Costco's promotion.

"General Motors is pleased that Costco members continue to find our holiday offer with Costco Auto Program valuable," GM spokesman Dan Flores said in a statement. "We were able to work with Costco Auto Program to ensure that we offered a diverse vehicle selection and value that resonates with Costco members, and received great results that included conquests from other brands."

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