Looking for a better way to buy a car without the traditional dealership headaches? Membership-based car buying services from AAA and Costco promise to make the process easier with pre-negotiated pricing and a more streamlined experience. But which one actually delivers better value? Let’s break down how these programs work, what they cost, and which one might be right for you.
How Membership Car Buying Services Work
Both AAA and Costco have created alternatives to the traditional car buying experience by leveraging their large membership bases to negotiate better deals with participating dealerships.
When you use these services, you’re essentially skipping the haggling process. The dealer agrees to offer members specific pricing that’s typically below MSRP. This creates a more transparent transaction where the price is established upfront.
The fundamental appeal is simple: the membership organization has already done the negotiating for you, potentially saving both money and stress.
AAA Car Buying Service: The Basics
AAA’s car buying service builds on their century-old reputation for roadside assistance by extending into the car purchasing process.
Here’s how it works:
- You must be a AAA member (membership costs $64.99-$74.99 for Classic, $99.99 for Plus, or $124.99 for Premier annually)
- Browse available vehicles through AAA’s online platform or mobile app
- Receive up-front, pre-negotiated pricing from certified dealers
- Visit the dealership with your AAA certificate to complete the purchase
The service covers both new and certified pre-owned vehicles that have undergone AAA’s 167-point inspection protocol.
Costco Auto Program: How It Works
Costco’s approach to car buying follows their wholesale-inspired model that members are already familiar with from their warehouse shopping experience.
The Costco Auto Program works like this:
- You need a Costco membership ($65 for Gold Star, $130 for Executive annually)
- Search for vehicles through Costco’s auto buying portal
- Connect with participating dealerships that offer Costco member pricing
- Show your Costco membership card when you visit the dealer
- Purchase your vehicle at the pre-arranged Costco member price
Costco has direct partnerships with over 15 manufacturers, allowing members to stack pre-negotiated pricing with factory rebates and seasonal promotions.
Price Comparison: Which Service Offers Better Savings?
When it comes to actual dollars saved, here’s how the two programs compare based on recent transaction data:
| Savings Metric | AAA Car Buying Service | Costco Auto Program |
|---|---|---|
| New Car Discount | 6.8% below MSRP | 8.2% below MSRP |
| Used/CPO Savings | 9.1% vs. market average | 7.9% vs. market average |
| Incentive Stacking Success | 29% of transactions | 42% of transactions |
Costco generally offers better savings on new vehicles, with members saving an average of 8.2% below MSRP compared to AAA’s 6.8%. This difference can be significant on higher-priced vehicles.
However, AAA has the edge when it comes to certified pre-owned vehicles, where their inspection protocols help drive better values relative to market prices.
One significant Costco advantage: their members are more successful at combining multiple incentives (like college graduate, military, or loyalty rebates) with their pre-negotiated pricing.
Membership Costs and Additional Benefits
Both programs require paid memberships that offer benefits beyond car buying:
AAA Membership Value
The basic AAA Classic membership starts around $65-75 annually, with Plus ($99.99) and Premier ($124.99) tiers offering enhanced benefits.
AAA membership includes:
- The famous roadside assistance program
- Travel discounts and services
- Insurance options
- Discounts on vehicle history reports (up to 40% off)
- Access to AAA-approved repair shops
For regular highway drivers, the roadside assistance feature alone can justify the membership cost, with the car buying service being a valuable bonus.
Costco Membership Value
Costco offers two membership tiers:
- Gold Star: $65 annually
- Executive: $130 annually (includes 2% cash back rewards up to $1,000 annually)
Besides car buying, Costco membership provides:
- Access to Costco warehouse shopping
- Discounted gas prices at Costco fuel stations
- Travel services and discounts
- Various insurance offerings
- Free tire rotation and inflation at Costco tire centers
The Executive membership can essentially pay for itself if you spend more than $3,250 annually at Costco (including on vehicles), thanks to the 2% rewards program.
User Experience Comparison
The actual experience of using these services reveals important differences that might influence your decision:
| Experience Factor | AAA Car Buying | Costco Auto Program |
|---|---|---|
| Dealer Network Size | Smaller | Larger |
| Pricing Transparency | Very good | Excellent |
| Paperwork Efficiency | Good | Excellent |
| Post-Purchase Support | Excellent | Good |
Costco’s program generally receives higher marks for the purchasing experience itself. Their documentation process is more streamlined, with customers spending an average of 38 minutes less at the dealership compared to AAA transactions.
However, AAA excels in post-purchase support, with 94% of users reporting satisfactory resolution of delivery issues versus 81% for Costco. This makes sense given AAA’s broader automotive service infrastructure.
Who Should Use AAA Car Buying Service?
AAA’s car buying service is particularly well-suited for:
- High-mileage drivers who already benefit from AAA’s roadside assistance
- Used or certified pre-owned car buyers looking for thoroughly inspected vehicles
- Drivers who value ongoing support throughout vehicle ownership
- Travelers who want to combine car buying with AAA’s travel benefits
- Older or classic car owners who might need more frequent roadside help
If you’re already a AAA member for roadside assistance, using their car buying service is a logical extension that requires no additional membership cost.
Who Should Use Costco Auto Program?
The Costco Auto Program tends to be better for:
- New car buyers seeking maximum discounts off MSRP
- Executive members who can earn 2% back on their purchase
- Families buying multiple vehicles (68% of Costco auto purchasers use the program for multiple vehicles)
- EV buyers who can access special charging partnerships
- Regular Costco shoppers who already have and use their membership
If you’re planning to buy a new car and already shop at Costco regularly, their auto program is likely to provide better value.
The Bottom Line: Which Service Is Better?
There’s no one-size-fits-all answer, but:
- For pure savings on new cars: Costco typically offers better discounts
- For certified pre-owned vehicles: AAA generally provides better value
- For streamlined purchasing: Costco’s process is usually faster and more efficient
- For complete car ownership support: AAA offers better integration with roadside and repair services
The best approach might be to check both services if you already have one or both memberships. If you don’t have either, calculate which membership would provide more total value based on your driving habits and shopping needs.
Tips for Getting the Most from Either Service
Regardless of which service you choose, follow these tips to maximize your savings:
- Do your research first – Know the invoice price and current market value before shopping
- Check for additional incentives – Ask about manufacturer rebates that can stack with member pricing
- Get quotes from multiple dealers – Even within the same program, prices can vary between participating dealers
- Compare financing offers – Neither service requires you to use dealer financing; check credit unions and banks too
- Consider the complete ownership costs – Factor in maintenance, insurance, and fuel when making your decision
By using these membership services strategically, you can remove much of the stress from car buying while securing a better deal than most shoppers get through traditional negotiation.
Real Member Experiences
Many Costco members report saving between $1,000-$3,000 on new vehicles compared to traditional dealership negotiations. The program is particularly praised for its no-haggle approach that eliminates the back-and-forth typical of car buying.
AAA members frequently highlight the service’s comprehensive nature, with the car buying experience integrating smoothly with their existing roadside coverage. Reviews on platforms like Yelp show particular satisfaction with the certified pre-owned options.
Both services have successfully carved out a niche in the car buying market by offering an alternative to traditional dealership experiences, with the choice between them ultimately coming down to your specific needs, existing memberships, and car buying priorities.
