Costco Auto

What Costco Auto does

Costco Auto Program is a private affinity-marketing platform operated by Affinity Auto Programs, Inc., a subsidiary of Affinity Development Group, Inc. that is independent from Costco Wholesale Corporation despite operating under the Costco brand license. Founded in 1991 and headquartered in San Diego, California, the program connects Costco's U.S. membership base (excluding Puerto Rico) with a nationwide network of franchised Approved Dealers who offer prearranged member pricing on new and pre-owned vehicles, eliminating traditional haggling. The web-based platform at costcoauto.com provides ZIP-code-based dealer lookup, vehicle search, Limited-Time Specials registration, manufacturer incentive stacking, and member support via phone (1-800-755-2519).

The product portfolio spans new vehicles, pre-owned vehicles, a Parts & Service discount program (15% off up to $500 per visit at participating service centers), RV discounts via a partnership with Camping World (nearly 200 locations), an Electric Vehicle Marketplace with member-only EV incentives, an auto insurance referral service, and research tools (comparison, finance calculator, safety ratings). Limited-Time Specials are continuously active with manufacturers including Volkswagen, Chrysler, Chevrolet, and Volvo, offering tiered incentives ($1,000–$2,000) that vary by Costco membership level (Executive vs. Gold Star/Business).

Revenue is generated primarily through dealer participation fees paid by franchised dealers joining the program to access Costco's member customer base (a transaction-fee model), with likely secondary revenue from manufacturer co-marketing on Limited-Time Specials. The go-to-market is hybrid: self-service web portal for vehicle search and registration, inside-sales phone support, and dealer/service-center channel partners for fulfillment. Customer segments are two-sided — Costco members as end buyers and franchised dealers/service centers as channel partners — with pricing tiers mapped to Costco membership status.

Name

Costco Auto

Legal name

Affinity Auto Programs, Inc.

Website

https://costcoauto.com

Company type

Private

Founded year

1991

Operating status

Operating

Headcount range

11–50 employees

Short description

Costco Auto Program is a private affinity-marketing platform that connects Costco members with a nationwide network of franchised dealers offering prearranged pricing on new and pre-owned vehicles, plus Parts & Service discounts, RV savings via Camping World, EV incentives, and insurance referrals across the United States.

Ownership category

akta.pro rank

Headquarters

HQ city

San Diego, California

HQ country

United States

HQ region

North America

Offices1 record

Markets served

GTM type

B2C

Offering type

Services

Cost components

Marketing or Sales, Operations, Personnel, Technology or R&D

Revenue model

1. Dealer Participation Fees: Costco Auto Program generates revenue through participation fees paid by franchised dealers who join the Costco Auto Program network. Dealers pay these fees to gain access to Costco's member customer base and the right to offer prearranged pricing.

Pricing tiers

Go-to-market motion1 record

Distribution channels5 records

Marketing channels6 records

Core offering

Costco Auto Program connects Costco members with a nationwide network of franchised Approved Dealers offering prearranged, haggle-free pricing on new and pre-owned vehicles. The program also delivers member-only discounts on parts and service, RV savings through Camping World, an EV marketplace, limited-time manufacturer incentives, and research tools to help members identify the right vehicle.

Product overview

Costco Auto Program is a single, unified membership-based auto buying platform that connects Costco members with prearranged pricing on vehicles. The core offering is the Costco Auto Program itself, through which members can purchase or lease new and pre-owned vehicles. The portfolio includes Parts & Service (15% discount at participating service centers), RV Discounts via Camping World partnership, Limited-Time Specials (member-only incentives on select models), an Electric Vehicle Marketplace with EV incentives, Auto Insurance referrals, and Vehicle Research Tools for comparison and financing calculations. The platform operates as a lead-generation and pricing-prearrangement service, not a direct seller of vehicles.

Differentiator

Problem solved

Functional benefit

Products and services

• Costco Auto Program A Costco-member-only auto buying program that connects individual members with a network of franchised Approved Dealers and delivers prearranged pricing on vehicles.
• New Vehicles

Quantifiable outcome

• 15% off parts, service, and accessories up to $500 per visit
• +2 more outcomes

Named customers8 records

Segments3 records

Ideal customer profiles1 record

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature2 records

Partnerships

Ten partnerships are on record, tiered core and minor.

• VolkswagencoreGTM or Marketing PartnerVolkswagen participates in the Costco Auto Program Limited-Time Specials, offering member-only incentives on select new models including Atlas, Atlas Cross Sport, and Tiguan. Executive members receive $1,250 incentive; Gold Star and Business members receive $1,000 incentive.
• ChryslercoreGTM or Marketing PartnerChrysler participates in Costco Auto Program Limited-Time Specials with member-only incentives on Pacifica and Voyager models. May 1 - August 3, 2026 promotion.
• Chevrolet (General Motors)coreGTM or Marketing PartnerChevrolet Bolt EV offered through Costco Auto Program with member-only incentives. $1,250 for Executive members and $1,000 for Gold Star and Business members on new 2027 Chevrolet Bolt.
• VolvocoreGTM or Marketing PartnerVolvo participates in the Costco Auto Program with member-only incentives on select models including EX90, EX40, and EX30. Executive members receive up to $2,000 incentive; Gold Star and Business members receive up to $1,500.
• PolestarminorGTM or Marketing PartnerPolestar offers Volvo Polestar Engineered Optimization Software discounts to Costco members who purchase, lease, or own eligible Volvo models. $300 discount on dealer-installed software.
• BMWminorGTM or Marketing PartnerBMW previously participated in Costco Auto Program savings events with member incentives on select new 2018-2019 models, excluding M-series performance vehicles.
• JaguarminorGTM or Marketing PartnerJaguar previously participated in Costco Auto Program Limited-Time Specials on F-TYPE models.
• Camping WorldcoreGTM or Marketing PartnerCamping World is the nation's largest RV retailer with thousands of new RVs and nearly 200 locations. Costco members receive exclusive member pricing on new RVs through the Costco Auto Program. Executive members may receive Costco Shop Cards upon completing post-purchase surveys.
• Participating Franchised DealerscoreChannel Partner/ Reseller/ DistributorNetwork of franchised vehicle dealers who have joined Costco Auto Program and agree to offer prearranged pricing to Costco members. A participation fee is paid by dealers. Dealers are selected based on strict criteria including high customer service standards.
• Participating Service CenterscoreChannel Partner/ Reseller/ DistributorNationwide network of automotive service centers offering 15% off parts, service, and accessories to Costco members. Each repair shop is selected based on strict criteria including a history of excellent customer service.

Scale indicators3 records

Recent moves5 records

Expansion highlights5 records

Broad incumbents

• Carvana: Carvana is an online used car retailer offering fixed pricing, home delivery, and a no-haggle experience. Comparable to Costco Auto Program in disrupting traditional dealer negotiation, though Carvana is a direct seller rather than a referral platform.
• Kelley Blue Book (Cox Automotive): Kelley Blue Book is a long-established vehicle valuation and research brand owned by Cox Automotive, with an Instant Cash Offer dealer network. Comparable in providing pricing transparency and dealer matchmaking, though it is a broader research and valuation brand rather than an affinity buying program.
• CarMax: CarMax is the largest US retailer of used vehicles, with a fixed-price, no-haggle model. Comparable to Costco Auto Program in addressing consumer aversion to traditional dealer negotiation, though CarMax sells directly while Costco Auto Program refers members to independent dealers.
• AutoTrader (Cox Automotive): AutoTrader is a major online automotive marketplace owned by Cox Automotive, listing new and used vehicles from franchised and independent dealers. Comparable as a consumer-facing vehicle discovery and dealer referral platform, though it operates at much larger scale and across all consumer segments.

Direct peers

• Sam's Club Auto / AAA Auto Buying: Sam's Club Auto and AAA Auto Buying are affinity/membership auto buying programs that connect members with dealers for prearranged pricing. They are the most structurally similar competitors to Costco Auto Program — same membership-affinity model with prearranged dealer pricing.
• Edmunds: Edmunds is an online car research and shopping platform offering vehicle comparisons, pricing data, and dealer connections. Like Costco Auto Program, it provides pricing guidance and dealer referrals to consumers, though it monetizes differently (advertising + leads).
• Cars.com: Cars.com is an online automotive marketplace connecting car shoppers with sellers through dealer listings and pricing tools. It competes with Costco Auto Program in helping consumers identify and connect with dealers, though it does not bundle prearranged pricing as centrally.
• CarGurus: CarGurus is an online auto marketplace that helps consumers find dealers and compare vehicle pricing, with a subscription-based dealer tier. Comparable to Costco Auto Program in the consumer-to-dealer matchmaking function and dealer monetization model.
• TrueCar: TrueCar is an online automotive marketplace that connects consumers with certified dealers for prearranged/transparent pricing on new and used vehicles. It is the closest direct competitor to Costco Auto Program's model — both serve as intermediaries between consumers and dealers with pre-negotiated pricing, with TrueCar monetizing via dealer subscriptions.

Others

• Affinity Auto Group / Affinity Development Group: Affinity Development Group, Inc. is the parent holding company of Affinity Auto Programs, Inc. — the operator of Costco Auto Program. While not an external peer, it is the corporate parent and may operate other affinity marketing programs analogous to Costco Auto Program.

Market position

Strengths1 record

Weaknesses4 records

Competitive moat5 records

Key risks1 record

Key highlights1 record

Customer concentration

• Xx.com/CostcoAuto
• YouTubeyoutube.com/c/Costcoauto
• Facebookfacebook.com/costcoauto
• Instagraminstagram.com/costcoautoprogram
• LinkedInlinkedin.com/company/costco-auto

Revenue estimate

Valuation estimate

Number of profiles

Profiles1 record

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Costco Auto