The warehouse club giant that defied all predictions of succeeding when it first launched a “pay to shop” format in 1983 is now stepping even further into the automotive sector.
As Jim Newbery, executive vice president of Costco’s auto program puts it, this expansion into the auto business beyond the sale of new and certified pre-owned cars is intended to give the over 44 million Costco members the ability to have access to members only savings for all aspects of vehicle ownership beyond the initial purchase.
The discount of 15 percent will apply to all parts and services, not including oil changes, and cannot be combined with other individual dealership specials or discounts.
Costco first began playing in the auto realm when it arranged no-haggle new car pricing for its members beginning in 1989, but now the retail giant is bringing its discount pricing to those needing parts, labor or accessories to the tune of 15 percent off from any one of its 2,500 participating car dealers nationwide, according to Automotive News.
Some dealers are projecting as many as 5-600 extra customer visits this year due to participation in the program, which Costco says creates an added revenue opportunity on the dealer level while still passing savings to members.
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1.’Costco discount aims…’ view
