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Costco is becoming America's favorite place to buy a car by offering one huge perk
(Reuters) People filling up their gas tanks at a Costco Gas Station in Carlsbad, California.
Costco is becoming a huge force in the auto world.
Through partnerships with auto dealers, the warehouse retailer sold 400,000 vehicles in 2014, twice as many as in 2008, Bloomberg Business reports.
"Without fanfare, the membership-only merchant better known for selling flatscreen TVs and jumbo-size boxes of cereal has pulled within spitting distance of No. 1. car retailer AutoNation, which sold 533,000 vehicles last year," according to Bloomberg.
Customers prefer buying with Costco to traditional car dealerships for one reason: fixed prices.
"The Costco Auto Program helps members purchase new and select pre-owned vehicles from exclusive participating dealerships in their market area that have been selected, trained and certified to provide a top-notch buying experience, and offer vehicles to the member at a great value," Costco told Business Insider in a statement. "Additionally, we bring more business to our participating dealerships’ service departments; with the 15% parts, service and accessories discount available to Costco members."
This means there is none of the notorious haggling or upselling of traditional auto dealers. Many buyers told Bloomberg this resulted in less anxiety during the process.
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