GM Wants You To Buy An EV At Costco

General Motors is increasingly leveraging the Costco Auto Program to broaden the reach of its EV lineup.

This program partners with franchised dealers to provide Costco members with special pricing through discounts and incentives. According to CNBC, Costco Auto facilitates the sale of over 500,000 vehicles annually, accounting for about 3% of all vehicles sold in the U.S. each year, surpassing the sales volume of major dealer groups like Lithia Motors and AutoNation.

Although the program does not directly sell vehicles, it partners with dealers and automakers to offer these discounts. Marissa West, GM North America President, has expressed strong support for the Costco partnership, emphasizing the potential to reach Costco’s over 50 million U.S. members. GM views this partnership as a significant opportunity to expand its EV market.

GM has partnered with Costco Auto in the U.S. since 2011 and in Canada since 2019. The program offers nationwide discounts through collaborations with over 3,000 franchised dealers in the U.S., featuring employees trained to provide competitive, haggle-free pricing. Currently, GM offers Costco members a $1,000 incentive on the Equinox, Blazer, and Cadillac Lyriq EVs, in addition to other company and dealer incentives.

The appeal of Costco Auto to EV buyers is growing, with 7% of vehicle requests in 2023 related to electric vehicles. The retailer notes that its members, who are typically affluent and loyal, are increasingly interested in EVs. Costco’s demographics align well with EV buyers, with a significant portion of its members earning above $125,000 annually.

The high price of all-electric vehicles remains a barrier to widespread adoption. As of April, the average transaction price for EVs in the U.S. was $55,242, according to Cox Automotive, which is over $10,000 more than gas-powered vehicles. Costco member incentives, lasting between 60 and 90 days, aim to make EVs more accessible by offering additional value.

Costco members can also receive deals on pre-owned vehicles, maintenance, and service, including 15% off auto repair. Dealers and automakers leverage Costco's reputation and consumer experience through the program. This partnership is seen as mutually beneficial, enhancing the value perception of both Costco and the participating automotive brands.

This article was co-written using AI and was then heavily edited and optimized by our editorial team.

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