Costco Members May Qualify for $1,000 to Buy This Luxury Car

Costco shoppers have one more perk now that the retail giant has a new rebate available for those looking to purchase a vehicle.

The $1,000 discount is available to members if they purchase or lease a new Cadillac model this January or February.

The deal went live in the United States starting January 3 and is available until February 29 to members. It can also be used alongside other incentives and rebates.

If you're a Costco member, all you need to do is select which vehicle you want based on the eligible models and then register to receive the certificate for the $1,000 discount. Your dealer will then accept the Costco discount on-site.

Eligible models are: Cadillac Lyriq, XT4, XT5, XT6, CT4 and CT5. The Escalade and CT5-V Blackwing aren't included. The Costco Auto Program is also available for members to get prearranged pricing through pre-approved dealers.

In the fall of 2022, Costco members in Canada were offered a $750 bonus on select models from Cadillac, Chevrolet, Buick and GMC.

The discount is one way Costco maintains customer loyalty despite its lofty membership prices, retail experts say.

"Costco's $1,000 Cadillac rebate is a smart extension of their member benefits, going beyond typical retail discounts," Markus Kraus, a finance expert and owner of Trading Verstehen, told Newsweek. "This deal not only offers tangible savings for members eyeing luxury vehicles but also boosts Costco's appeal as a lifestyle brand. It's a win-win. Members get exclusive deals on high-end products, and Costco strengthens loyalty."

The discount reflects a growing change in membership-based businesses as they seek to offer additional benefits to members' lives.

"Such incentives showcase how membership-based businesses are evolving," Kraus said. "They're no longer just about bulk groceries but about enhancing overall lifestyle value. This approach could inspire similar trends in retail memberships, where benefits span various aspects of consumer life."

Other Costco Deals

Saving big on your next vehicle purchase isn't the only deal you can take advantage of at Costco this month.

Generally, Costco members will be saving when filling up the tank, too, because Costco's gas stations routinely offer cheaper prices than the standard.

They also offer free returns on all items and 2 percent annual cashback if you're an Executive member.

Members also get access to a photo center at the bulk store, which allows them to take passport photos for just $5.

There's also a wide range of product deals available to members this month.

An HP Envy 17.3-inch touchscreen laptop is priced down $350 from $1,249.99 to $899.99.

Shoppers can also save $600 on round diamond 14kt white gold halo earrings originally priced at $2,999.99.

And a 15-inch MacBook Air is down $200 from $1,249.99 to $1,049.99.

Gold Star and Business memberships cost $60 annually at Costco. If you want the Executive membership, you'll have to pay $120.

Update 01/12/24 5:55 a.m. ET: This story has been updated to clarify that the 2022 vehicle promotion was in Canada.