Costco has been in the car business for years, offering a few vehicles to members at attractive rates. The warehouse chain also sells tires and discounted fuel. Now Costco wants to take its discounting model right to the dealer service bay.
Automotive News reports that Costco has negotiated a 15-percent discount on parts, labor and accessories with select dealerships around the U.S. The move gives those dealers access to Costco's 44 million members, who in turn get a nice break on the cost of parts and labor.

Dealerships typically strive to make enough money in the service department to pay the bills, so this agreement could be very lucrative for retail outlets. Jeff Brandfon of Brandfon Honda in Branford, Connecticut tells AN that the partnership with Costco will result in 500 to 600 customer pay jobs per year. Brandfon's optimism is rooted in statistical proof of Costco's power, as the warehouse chain can point to 250,000 vehicle sales to members in 2010 alone.


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    • 1 Second Ago
  • 10 Comments
      zamafir
      • 2 Years Ago
      oddly they're the same places passport discounts...
      bobmarley
      • 2 Years Ago
      Costco is awesome.
      kevsflanagan
      • 2 Years Ago
      Since mark up on some parts can be as little as 20% to as much as 50% (If not more) a slight hit of 15% won't really effect the sporting dealers that much since they'll make it up in sheer volume. Plus if the dealerships give great service they'll get free advertising via word of mouth.
      styxmiko
      • 2 Years Ago
      since this article is not about cars anyhow, I'm also going to interject with a non car related Costco story: I read that Costco's honey is tainted with cheap Chinese chemically altered additives that's being sold as "Made in the USA" or "Produce of USA".
        Rampant
        • 2 Years Ago
        @styxmiko
        You believe everything you read on the internet?
        Elmo
        • 2 Years Ago
        @styxmiko
        Not about cars? Are you kidding me? So the fact that Costco is giving discounts to its members on AUTOMOTIVE parts doesn't mean it's not about cars?
        Johnny
        • 2 Years Ago
        @styxmiko
        That's nonsensical, the claim you're talking about includes all major stores just because they happened to go there to buy honey to test and it has nothing to do with additives but the claim that much of the honey is ultrafiltered, which is done basically by reconstituting the honey after boiling it to get rid of the pollen. No honey has actually tested positive for any additive but certain people are trying to make it sound like ultrafiltered honey is tainted when there's actually no evidence of such.
          theharpyeagle
          • 2 Years Ago
          @Johnny
          Ahh! The business of honey laundering has turned out to be a very lucrative one. On the surface, China's annual honey exportation has fallen, and yet it's honey production has continued to increase. Since Europe and the US are the major consumers of honey, and the EU has banned importation of Chinese honey, and the US slapped a hefty tariff on it, where does China's honey go these days? It turns out that a sophisticated network and cartel of global traders involving falsification of documentation and clandestine shipment through a network of co-operatives in Asia and in Germany and the US have made this the phenomenon of global honey laundering a very lucrative business. So lucrative that those involed with exposing the schemes have faced death theats. You have to figure out that something is fishy when a small island nation like Singapore, with hardly any honey bees to speak of, is one of the world's largest exporter of honey. Singapore exported zero amoutns of honey 1999-2001, but in 2001-02 year, it exported close to 1500 tonnes, mainly to the US. At about the same time - 2001-02, Australia "imported" over 2000 tonnes of Chinese honey, yet Australia has it's own (albeit ailing) honey bee industry. But then, Australia was also a major exported of honey to the US that same year, the very year when it's own honey production is suffering. It is likely that a large quantity of those 2000 tonne Australian bound Chinese honey never even reached it's shores. It was just relabelled as Australian in it's country of origin and shipped straight tot he US. Doesn't take a rocket scientist to figure out what is going on here. It all started back in 2001-2002 when the US banned importation of Chinese honey. Even though the tariff imposed on Chinese honey in 2002 was larger in response to the ailing US honey industry, and the clear disadvantages that the US honey producers face, the increased crack down on honey laundaring was, in deed, in response to contaminated honey. The antibiotic contaminant in question, chloramphenicol, is no laughing matter. It causes an idiosyncratic reaction in genetically susceptible people, causing aplastic anaemia. What that means is that the risk is in the mere presence of the antibiotic in the food, not the dosage. Of course, when there is good money to be made, other countries started to get on the band wagon - Malaysia, India, Taiwan, Phillipines, etc.
        Gubbins
        • 2 Years Ago
        @styxmiko
        NOT so...and to quote this kind of unconfirmed crap without substantiation is grossly irresponsible. Costco is VERY diligent at sourcing and vetting suppliers and would never tolerate this. What are your sources...or is it just "I read.."?
      SloopJohnB
      • 2 Years Ago
      As long as COSTCO puts those parts online or the dealers/parts sellers have a drop down menu that allows you to use your COSTCO card/account I see nothing but good with this.