Buying a car is an investment that requires thoughtful consideration, extensive research, and often, a lot of stress. But with services like AAA and Costco, the process is significantly simplified.
Both AAA and Costco offer car buying services that can save customers a great deal of time, money, and worry. However, each service has its own unique pros and cons.
A Brief Comparison Table
| Aspects | AAA Car Buying Service | Costco Auto Program |
|---|---|---|
| Service Integration | Yes (Includes insurance, financing, and roadside assistance) | No |
| Pricing Transparency | Not prearranged, but discounts available | Yes (prearranged pricing available before visiting the dealership) |
| Variety of Vehicles | Primarily new cars | New cars, select pre-owned cars, RVs, and powersports vehicles |
| Membership Requirements | Yes (Annual fee based on location and type of membership) | Yes (Flat annual fee) |
| Insurance and Financing | Yes | No |
| Average Savings | Reportedly averages $3,383 off MSRP for new cars | Customers saved an average of $1,000 over typical dealership pricing |
| Extra Services | Yes (travel services, AAA discounts, and more) | Limited (mainly focused on auto and home services) |
Understanding AAA’s Car Buying Service
AAA’s car buying service allows members to browse an extensive network of approved dealers and models to find a car that suits their needs.
The primary advantage of AAA’s service is the seamless integration of its other services into the car buying experience.
With AAA, not only can you buy a car, but you can also get it insured and even finance it, making the entire process streamlined and convenient.
One of the significant pros of using AAA is its reputation.
With over a century of providing automotive services, AAA has garnered a significant amount of trust among its users.
The company’s longstanding relationship with car dealers means that AAA members can often receive exclusive discounts, with savings reportedly averaging $3,383 off MSRP for new cars.
However, AAA’s car buying service isn’t without its cons. Although AAA offers many different services, their car buying service is only available to members, which requires an annual fee.
Plus, AAA’s service primarily deals with new cars, which can be limiting for those who are in the market for used vehicles.
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Evaluating Costco’s Car Buying Service
Next, let’s take a closer look at the Costco Auto Program. This car buying service is similar to AAA’s but comes with a few unique aspects that set it apart.
Much like AAA, Costco has a network of approved dealers and offers prearranged pricing on new and select pre-owned vehicles. But unlike AAA, Costco’s service extends to RVs and powersports vehicles.
One of the key benefits of the Costco Auto Program is its price transparency.
Costco members can see the prearranged price before visiting the dealership, reducing the stress of haggling.
According to Costco, customers who purchased a vehicle through the Costco Auto Program saved an average of $1,000 over typical dealership pricing.
A potential downside to using Costco’s car buying service is that it’s only available to Costco members, similar to AAA.
Another point to consider is that while the program includes a variety of vehicle types, it does not offer the breadth of services beyond car buying that AAA provides, such as insurance and financing.
Key Differences Between AAA And Costco Car Buying Services
While AAA and Costco share the common aim of simplifying the car buying process, there are key differences between their offerings. Here’s a deep dive into these differences.
- Service Integration with AAA
AAA offers a comprehensive suite of automotive services. When you buy a car through AAA, you’re not only gaining access to a curated network of dealers, but you can also insure your vehicle, finance it, and even receive roadside assistance, all under the same roof.
This seamless integration of services can make the entire car ownership process convenient and less stressful.
- Pricing Transparency with Costco
While AAA provides exclusive discounts, the Costco Auto Program excels in price transparency. Costco members can see the prearranged price on new and select pre-owned vehicles before visiting the dealership.
This level of transparency can significantly reduce the anxiety and stress associated with price negotiation at the dealership, making the car buying process much smoother.
- Vehicle Variety with Costco
While AAA’s car buying service primarily focuses on new cars, Costco provides a wider variety of vehicle types, including new and select pre-owned cars, RVs, and powersports vehicles.
This broader selection can cater to a wider range of needs and preferences, making Costco’s service more versatile for different buyers.
- Membership Requirements
Both AAA and Costco car buying services are exclusive to their respective members. Therefore, if you’re considering using either service, you’ll need to factor in the cost of membership.
AAA membership can vary based on your location and the type of membership you choose, while Costco membership has a flat annual fee.
- Insurance and Financing
AAA provides its members with the opportunity to insure and finance their vehicle purchase, which is a significant plus. This isn’t something that the Costco Auto Program offers, meaning members may have to seek insurance and financing through third-party providers.
By understanding these key differences, you can make an informed decision about which car buying service is right for your specific needs and circumstances.
Also Read: Differences Between Porsche Taycan 4 And 4S.
Frequently Asked Questions (FAQ)
Absolutely! The Costco Auto Program provides prearranged pricing, reducing the stress of negotiating a price at the dealership. Plus, Costco carefully vets all its participating dealerships, giving members the peace of mind that they’re getting a quality vehicle.
While it can vary based on the vehicle and location, Costco reports that customers saved an average of $1,000 over typical dealership pricing.
Yes, the prearranged pricing through the Costco Auto Program can potentially save you money. It eliminates the need for price haggling and offers competitive, prearranged prices for members.
Costco does not use TrueCar. Instead, Costco uses a network of hand-selected dealerships to provide prearranged pricing for its members.
Wrapping It Up
When it comes to car buying services, both AAA and Costco have their unique pros and cons. AAA’s service offers a one-stop shop for car buying, insurance, and financing, while Costco provides prearranged pricing and includes a broader range of vehicle types.
Your choice between the two will ultimately depend on what you value most in your car buying experience: the additional services and longstanding reputation of AAA, or the price transparency and extensive vehicle options offered by Costco.
Remember, the best car buying service is one that fits your needs and provides the most value for your investment.
Also Read: Differences Between Dealer Buyout And Customer Buyout.
