Renting a car through Costco isn't always the cheapest option, but there are 3 reasons I wouldn't rent anywhere else (2023)

FAQs

Is Costco the cheapest way to rent a car? ›

Low rental prices

Costco is probably the most competitive outlet for renting cars that I've found. They're almost always the cheapest, though it's never a guarantee. When you book through Costco Travel, you also can add your reservation information to AutoSlash (read our review here).

Costco doesn't maintain a fleet of rental cars waiting for its customers. Instead, it partners with several well-known companies to offer cars for rent at a discounted rate. Its large membership base affords Costco group-negotiating power, which means you often get the best deal on a rental car.

The "Car Rental" price (base rate) will not change, but taxes and fees are subject to change. Since there is no payment taken at the time of booking, taxes can fluctuate until the car is picked up. Any tax fluctuations are outside the control of Costco Travel.

Demand for rental cars is outpacing the supply of available vehicles, so rental car prices have gone sky high. If you have been surprised by unusually high rental car rates, or by rental cars being generally unavailable, read on.

It can indeed be a good deal since the Costco Auto Program offers savings on leases and the purchase of new or used cars, trucks, SUVs, and recreational vehicles. Members can also get exclusive discounts on parts and services at approved dealers and service centers.

One caveat is the Costco Auto Program's prices are fixed, so don't expect to be able to haggle for a better price. That adds to the ease of the entire process, which is ideal for customers who aren't interested in those back-and-forth negotiations you might usually experience at a dealership.

No. Only the primary driver listed on the reservation can pick up the rental car. At the rental counter, the primary driver must show a valid driver's license and Costco membership card in their name.

We have great news for you! Rental car reservations made through Costco Travel's Low Price Finder may be canceled without a penalty fee any time prior to pick up by logging on to your Costco Travel account. You may also cancel by calling us at 1-866-921-7925 or the rental car agency directly.

Do I need my Costco card to pick up a rental car? ›

Do I have to show my Costco membership card when I pick up my rental car? Yes. The primary driver must present a valid Costco membership card in their own name to the rental car agent at pick up. Otherwise, the Costco Travel discount will not apply.

The quoted price includes all rental car taxes and fees, which are subject to change. If optional equipment is added, your price will include the applicable taxes and fees, which are also subject to change. Insurance and additional coverages are not included in the price and can be added at the rental counter.

Car rentals are so expensive in 2022 due to shortages. Car rental companies sold off most of their inventory during the pandemic. A surge in demand has not been adequately met, leading to high rates. Additionally, a global shortage of microchips has slowed the production of new cars.

Do you need insurance to rent a car? No, you don't need to have insurance because rental cars are already insured. That said, some form of rental insurance is strongly advised because if you rent a car without insurance, you are responsible for any damages to the vehicle.

The monthly cost is often lower than a traditional auto loan payment. You are (usually) not responsible for repairs needed on your car for the length of the lease or rental. Renting or leasing a new-model car is cheaper than buying one. You don't need to try to sell the car when you want to upgrade.

Can you negotiate rent? Yes. Each landlord will differ in how receptive they are to negotiating rent, but it happens a lot. Often landlords build risk into their rental rates so they can afford it when a renter is late or breaks their lease.

(The rule of thumb we like to use is around $10 per day or $100 per week as a great deal. Sometimes it will be double that, and that's also normal. In general, a car rental that might cost $30-80 per day might be a lot cheaper to rent by the week.)

Is Hertz cheaper than Enterprise? We ran multiple quote comparisons and by large, found Enterprise to be more expensive than Hertz. Prices differed from $70 to up $200 for both prepay and pay on pick-up options.

Is it better to rent a car at the airport or online? ›

Outmaneuver Fees and Industry Quirks

For example, cars rented at the airport are almost always more expensive because of added taxes and fees. Rent at an off-airport location and you could save 20 percent or more.

Costco doesn't offer oil changes as part of its automotive services. However, it offers other maintenance services that your car needs through the Costco Auto Program. These services are available at participating centers at 15% off services and parts.

As he showed, many items are priced lower at Costco than at competing stores and if you can shave even a little bit off your grocery bill each week by buying them there, the savings can add up. However, Ramsey also explained that while you can save money, there's no guarantee you will.

The program can also help save you some money with the purchase as well as make it more convenient for you. Members who use the program end up saving an average of $1,000 or more when they buy a new vehicle. These savings can help offset the cost of a Costco membership, which is needed to take advantage of the program.

Based on your pricing homework, you should have a good idea of how much you're willing to pay. Begin by making an offer that is realistic but 15 to 25 percent lower than this figure. Name your offer and wait until the person you're negotiating with responds.

The Costco membership card is non-transferable, but there are several ways to share the experience with family and friends. Anyone with a card can bring up to two guests to the Warehouse during each visit. Keep in mind that purchasing items is exclusive to Costco members.

Membership Cards and Fees

Your membership card is valid at any Costco warehouse worldwide and is not transferable.

The person with the card must be present, though “payment” can come from anyone else. Essentially, if you want to shop at Costco, you need to be with a member.

Do you get a refund if you cancel a rental car? ›

If you did not prepay for your reservation, there will not be a cancellation fee. If you cancel your booking less than 7 days, but at least 24 hours before your specified pick up time you will be refunded the booking amount minus a small cancellation fee.

Costco credit card rental car insurance covers you for up to $50,000 toward the cost of repairs or the cash value of the car, whichever is less, when you pay for a rental car with the Costco Citi card and decline the rental company's collision loss/damage insurance.

Costco has partnerships with Avis, Alamo, Budget and Enterprise—so it often delivers multiple deals for you to compare. But Costco does not have partnerships with other major brands like Hertz, Dollar, Payless, Thrifty and National. It also does not support reputable discount brands like Sixt or Advantage.

Costco has partnerships with four major rental car companies: Avis, Alamo, Budget and Enterprise. Costco does not have partnerships with other major brands like Hertz, Dollar, Thrifty, National, and Payless.

Yes, you can park at Costco overnight. Generally, Costco stores want you to park furthest away from the store so that shoppers can park closer. But not all cities and not all Costco's allow overnight parking.

Rental cars

Most credit cards come with rental car insurance, which can cover a portion of your liability or accident costs. The CIBC Costco Mastercard, however, doesn't have this insurance built into it.

A sales tax exemption claim form. You can download a PDF of our sales tax exemption claim form right here or by copying and pasting the following URL into the address bar of your web browser: https://goo.gl/LXu8NA. The completed and signed sales tax exemption claim form MUST be included with your request.

We strive to give our members the best products at the lowest possible prices, and our membership fee allows us to offset many of our operating costs and price our merchandise lower.

Is it better to lease or rent a car? ›

Leasing can provide you more vehicle options and be cheaper than renting for the typical lease term of two to four years. Rentals can be better for shorter term needs or if you need a car immediately.

The Costco Auto Program offers preset membership pricing for new and used automobiles, plus RVs, at a number of dealerships around the country. On average, the retailer claims, customers can save about $1,000 off a vehicle purchase, though that will ultimately depend on the customer's car choice and the dealer.

Offering an exceptional value with low, prearranged pricing on many makes and models, the Costco Auto Program makes saving on your next vehicle easy. For even greater savings, applicable manufacturer rebates, incentives and special offers will be added to your Costco member price.

A Costco car is a good deal, but there are caveats.

The company is known for its great stuff and top brands at rock-bottom prices. It's the same with Costco cars. You can buy a car at Costco through the Costco Auto Program and get a pre-arranged, rock-bottom price on pretty much any car.

Does Costco Travel offer rental car insurance? We don't offer or include rental car insurance. However, optional insurance is available through the rental car company and you can add it at the rental counter when you are picking up your car.

AAA & Costco Members Discount | www.logansquareautorepair.com. AAA members receive 10% off and COSTCO members 15% off most services with valid member ID.

Costco is known as a low-price leader, but as the big-box and warehouse store landscape becomes more and more competitive, it's getting harder to find unbeatable deals. Despite this, Costco still has some major purchasing power, which helps it keep costs way low.

A basic Gold Star membership at Costco costs $60 annually ($120 for the Executive tier), so you would need to save at least $60 in purchases for your membership to be worth it. Costco is famous for its deep markdowns and overall lower prices on anything from mixed nuts to widescreen TVs.

A Costco executive membership costs twice what a regular membership costs. It also puts cash in your pocket that could make that higher fee worth paying. If you spend at least $3,000 per year at Costco, an executive membership will pay off for you.

Can you lease a car through Costco Auto Program? ›

Can I lease a car through the Costco Auto Program? Absolutely. Our Authorized Dealer Contact will offer you the same price for a lease as for a purchase. In leasing, the “Agreed Upon Value of the Vehicle” is equivalent to the “Member-Only Price” in a purchase.

Yes. If you rent a car, you need coverage to protect the vehicle and yourself. Without it, you would have to pay for any damage out of pocket above the basic protection. If you don't have a vehicle, you can get it from the rental company or your credit card company.

Rental car coverage used to be standard on most credit cards, but some major issuers no longer offer this benefit. The best way to find out if your credit card includes rental car coverage is to call the number on the back of your card, or read the most recent version of its benefits guide.