Travelers looking to save money on rental cars may have found an unexpected hack: booking through Costco.
The warehouse club’s Costco Travel service lets members compare rental car rates from companies including Alamo, Enterprise, Avis and Budget, with eligible discounts and coupons automatically applied. Although the reservation is booked through Costco, the rental car company handles the payment, reservation and extras such as insurance, toll transponders and vehicle assignments.
One of the biggest perks is that an additional driver is included at no extra cost with participating rental companies. That can save travelers a daily fee that would otherwise be added to the rental. Only the primary driver needs a Costco membership, which starts at $65 a year. The additional driver does not have to be a member.
Costco members can also cancel eligible reservations without a cancellation fee, although some prepaid reservations may have different rules. Executive members may also earn Costco’s 2 percent annual reward on eligible Costco Travel purchases.
The rental-car benefit has been available since Costco Travel launched in 2000, but it has recently gained newfound attention on Reddit and TikTok as travelers look for ways to cut the cost of their trips.
Costco Executive member, RV Mendoza, told The Washington Post that she found a compact SUV for $573, including taxes and fees, for a recent 10-day Los Angeles trip — about $88 less than booking directly with Alamo.
The Costco rate also included a second driver, saving another $12 to $15 per day, according to the Post. The rental was also eligible for Costco’s 2 percent annual reward for Executive members.
Even after factoring in the $130 annual Executive membership fee, Mendoza said the rental made the membership worthwhile.
“With just one rental, I’ve almost paid for my Executive membership without even grocery shopping,” Mendoza told the Post.
The savings aren’t guaranteed, however. Rental prices can vary significantly depending on the location, dates and vehicle, so travelers should compare the total price, including taxes, fees and other charges, rather than just the advertised daily rate.
Costco rental cars can be 10 percent to 25 percent cheaper on average, travel expert Clint Henderson told the Post, with savings of up to 40 percent possible. But NerdWallet’s Sally French cautions that shoppers may still find lower rates elsewhere, especially when using credit-card perks or promotions.
“You’re getting a great deal every time, but maybe not necessarily the best deal,” French said.
Still, subscribers to other wholesale clubs, like Sam’s Club and BJ’s, find that Costco’s rental car rates are the best, according to the Post.
“Costco Travel is a wholly owned, in-house division of Costco. Costco’s own travel team negotiates with cruise lines, hotels, rental cars, etc., to build their list of offerings,” French explained the reason to the Post. “In contrast, the others use white-label third-party agencies,” like Entertainment Benefits Group for Sam’s Club and World Travel Holdings for BJ’s.
