GM's Fall Costco Deal Is Hit Or Miss

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Senior Pricing Analyst

As CarsDirect’s resident pricing analyst, Alex offers must-know analysis of pricing & incentives to those looking to buy or lease a car. His consumer-oriented coverage of the latest trends and breaking news has been featured in publications such as Car and Driver, Motor Trend, Automobile Magazine and Autoblog.

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, Senior Pricing Analyst - October 7, 2020

GM has expanded a special Costco discount to at least 13 models in October. Previously limited to just the Chevy Bolt EV, new car shoppers can now take advantage of additional savings on a variety of popular SUVs & trucks. However, our analysis has found some important advantages & disadvantages worth knowing about.

The enhanced offer involves a $1,000 bonus when buying or leasing through the Costco Auto Program. Available through January 4, the promotion can be combined with other incentives like manufacturer rebates or this month's hidden financing offer of 0.9% APR for 72 months. Here's why we think that may be a big deal.

Advantages. First, GM is allowing consumers to take the discount on both 2020 & 2021 model year vehicles (full list below). As a result, this may be the only way to get a rebate on newer models like the redesigned 2021 Chevy Tahoe. Even vehicles facing inventory shortages like the 2020 Silverado qualify for the bonus.

Since the offer can be stacked, the Silverado 1500 is now eligible for 0.9% APR for 72 months plus a $2,700 bonus and the $1,000 Costco discount. That's $3,700 in savings that can be combined with low-interest financing. If you play your cards right, this could amount to real savings amidst high dealer prices.

GM is allowing members to transfer the discount to others in the same household. Just be aware that you may need to show proof of residency such as a driver's license or other state identification. According to Costco Auto Program spokesperson Darren Johnson, the offer can be redeemed at any Chevy dealer.

Disadvantages. At $1,000, GM's Costco discount doesn't offer a huge advantage compared to past offers. Around this time last year, GM introduced Supplier Pricing followed by Employee Pricing at year's end. It's also worth noting that, with the exception of the Bolt, no other passenger cars are eligible for the deal.

Curiously, the Bolt EV continues to offer 3x the savings as other models with a $3,000 Costco discount. As a result, the car features one of the best leases in America with prices starting at just $145 for 36 months with $145 due at signing. If you aren't looking for an EV, you'll have to settle with the $1,000.

Looking to buy a Cadillac? Sadly, GM's luxury brand is excluded entirely. This isn't all that surprising considering what we've seen in the past from GM's Costco sales. However, that doesn't mean there aren't deals to be had. At $279/month, the 2020 Cadillac XT4 ranks among the cheapest leases on a luxury SUV.

This month's changes also require that you have to have been a member by September 30. As a result, non-members finding out about the offer today will not be able to take advantage of the savings. While the coupon can be used at any dealer, only Costco Auto Program dealers can offer special warehouse member pricing.

Eligible Chevy Models

Eligible Buick Models

Eligible GMC Models

Editor's Note (10/09): The 2021 TrailBlazer is also eligible for this promo. In addition, as noted by a program spokesperson today, the offer can be used at any Chevy dealership for members as of September 30 after generating an offer code on the program website. We have updated this article accordingly.

, Senior Pricing Analyst

As CarsDirect’s resident pricing analyst, Alex offers must-know analysis of pricing & incentives to those looking to buy or lease a car. His consumer-oriented coverage of the latest trends and breaking news has been featured in publications such as Car and Driver, Motor Trend, Automobile Magazine and Autoblog.

Follow On: Twitter

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