Becoming a Costco Member Could Save You $1,000

Like clockwork, every fourth quarter GM runs a Costco Auto Program discount, and like clockwork, we get customers wanting to take advantage of it but cannot. Let’s go through a little history.

SUPPLIER PRICING WITH COSTCO

Until 2020, the Costco Auto Program enabled you to get GM Supplier Pricing. As it happened, our pricing was normally below supplier pricing, but you could get a Costco cash card of $300 or $700, depending on your membership level. And because it was a Supplier Pricing-based discount program, you couldn’t combine it with the Educator, Military, College, First Responder, or Healthcare (that group is now known as an Affinity Discount) discounts that were also Supplier Pricing based discount programs.

Then, in 2021, things changed. GM eliminated Costco as a Supplier Pricing-based discount program and changed it to a straight rebate program. For example, it would be $1000 of the rebate, and it would combine (be stackable) with the Affinity Discounts. This year, GM changed the Affinity Discounts to be straight cash rebates instead of pricing programs, and though you cannot combine two different Affinity Programs (Educator and Military), you can combine an Affinity program and a Costco discount. At least that was the case in June when GM last ran a Costco discount program. In our opinion, this is much better. You could not combine Costco with GM Employee or GM Supplier programs in the past. You can now. This was an obstacle to many in the past to use Costco membership to save money. It seems to have been removed.

2021 Q4 COSTCO HAPPENING?

We cannot say for certain GM will do a Costco Auto Program in Q4, but it has for several years in a row, and our opinion is that we would be very surprised if it did not come back in Q4 of this year. In spite of the excellent demand and low supply, GM did Costco earlier this year, so we do not think current market conditions are an obstacle.

Historically, the Costco Auto Program rebates have been $1000 and even higher for Bolts at as much as $3000. Let’s assume for a minute that history is a guide. Then you should expect a $1000 rebate on popular expensive models like Silverado, Tahoe, Suburban, and perhaps Colorado. That has been the pattern. Big Disclaimer: GM will do what it wants to do on this, so nothing is for certain on these numbers.

WHAT IS THE GOTCHA?

GM and Costco do not allow you to become a Costco member on October 21 as an example, and take advantage of the Q4 program. You MUST be a member as of September 30 to avail yourself of these discounts. Additionally, there have been pop-up Costco programs run on an ad hoc basis for a month in the last couple of years, but you have to be a member by the end of the previous month of the month it is announced.

This is where spending $60 per year on a Gold Membership at Costco could result in savings. It would take almost 17 years of memberships to eat away $1000 of rebate. So, if you bought one Chevy in 17 years, paid Costco memberships every year, and used a $1000 rebate, you would be even. That should be pretty easy to be ahead of as most people buy vehicles more often than every 17 years. So, it is good to maintain a base-level membership in Costco to be able to take advantage of the large rebates on offer when the time comes and you happen to be in the market for a Chevy!

If you are not a Costco member, become one by 9/30/21 so you are prepared for Q4 of this year should Chevy offer Costco Auto Program rebates and should you be ready to buy a new Chevy.

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