Discounted cars to be sold at Costco

Soon your next trip to the supermarket could include eggs, milk, bread and a brand new car.

That’s the vision of US retail giant Costco who will this week offer its 1.5 million Aussie members the chance to buy a new car at discounted prices.

Costco currently has 15 warehouse locations around Australia with each location frequented by 25,000 Aussies every week. Shopping at Costco requires a membership, which is $65 per year, and that provides access to cheaper, wholesale pricing on a wide range of products.

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Costco already sells cars at its stores in America, where it moves around 775,000 vehicles each year. The initiative is also in Costco stores in the United Kingdom and Canada.

The Aussie operation, which is called Autoconnect, will see Costco partner up with Aussie company Autoreviewa and has been four years in the making.

Discounts on new cars purchased from Costco tend to range between $700 and $2750, with most cars being $1500-2500 cheaper than if purchased directly from a dealer.

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The Aussie program will see Costco allocate space for between one and three vehicles in each of its warehouses, with individual dealers and manufacturers both able to apply for the space.

Importantly, the cars displayed in Costco stores will be available to purchase that day without the need to order or endure lengthy waiting periods. Nissan, Suzuki, Renault and Ford are just some of the brands currently being promoted for Costco purchase on the Autoreviewa website.

Test drive events are also expected to be part of the Costco program and car brands will also be able to man their displays to engage with customers.

The new initiative will be rolled out on Australia’s east coast this week before expanding to all of Costco’s 15 Aussie outlets. More Costco stores are also planned for Australia.