With nearly 400,000 cars sold last year, Costco became the No. 2 best-selling store brand in the U.S., trailing only AutoNation (533,000 units).
“That’s a much bigger number than I would have expected,” LMC Automotive analyst Jeff Schuster told Bloomberg. “This reinforces that everybody wants a deal, but they don’t want all the headaches of haggling.”
Customers in the U.S. can't actually buy a car at Costco and drive away with it, but they will find substantial rebates that can be applied at a local dealer. One man got $4,000 off when he recently purchased a 2015 Toyota Highlander.
This isn't a direct profit-driven venture, mind you. Costco merely uses its purchasing power to negotiate discounts for its 45+ million U.S. cardholders and attract new ones. In Canada, the retailer offers a $1,000 rebate on select Ford and Lincoln vehicles only.