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Ranked: The 5 Best Perks of Joining Costco

Shopper looking through piles of clothing at warehouse club store.

Image source: Getty Images

Costco is different from other stores in that it charges a membership fee. Right now, you’re looking at $65 a year for a basic membership, or $130 a year for an Executive membership that gives you 2% cash back on Costco purchases.

You’re probably aware that Costco members get access to savings on groceries and household essentials like paper towels thanks to the store’s bulk discounts. But you may be surprised to learn that joining Costco offers a world of benefits beyond that.

Let’s count down the top five perks of a Costco membership so you can decide whether it pays to get one yourself.

Perk No. 5: Stress-free tire replacement

Doesn’t it stink that tires don’t last forever? You could be looking at hundreds of dollars when the time comes to replace your vehicle’s tires.

The good thing about buying tires at Costco is that they come with lifetime maintenance, including rotations and pressure checks. Tire purchases also come with a free five-year road hazard warranty, so if you bust a tire a year after replacing it, Costco will give you a new one at no cost.

Perk No. 4: Extended warranties and tech support for electronics

Like tires, new electronics aren’t cheap. When you buy a new laptop or TV, you want reassurance that it’s going to last.

When you buy electronics at Costco, you get a free second-year warranty thrown in. That gives you added peace of mind when you’re spending many hundreds of dollars or more at a time.

Plus, electronics at Costco come with free tech support. If you’re the type who struggles to get new devices set up, you’re covered.

Perk No. 3: An extremely generous return policy

Most stores give you a limited amount of time to return items you don’t want. At Costco, that’s not a concern. You can bring back most items at any time for a full refund.

Costco’s return policy even extends to food you’ve begun eating. If you buy a grocery item whose taste you don’t like, you can return it and get your money back, provided you’re bringing back at least 50% of it.

Now, there are a few exceptions to this rule. Electronics bought at Costco come with a 90-day return policy, while alcohol and cigarettes generally can’t be returned at all. But for the most part, you’re not taking much of a risk on the Costco products you buy, because purchases that don’t work out can be brought back.

Perk No. 2: Discounted gift cards

You may not realize that Costco sells gift cards to other businesses. But on top of that, Costco’s gift cards are discounted below their face value, allowing you to save big.

For example, right now, you can buy $100 worth of IHOP gift cards for $79.99. If your family eats breakfast at IHOP every weekend, this is a deal worth scooping up repeatedly.

Plus, if you swipe the right credit card at Costco, you can save even more on your purchases in the form of cash back. Click here for a list of the best credit cards for Costco.

Perk No. 1: Inexpensive gas that’s high in quality

All of the perks above make the case for joining Costco. But the top perk of a membership is getting access to inexpensive gas that’s high in quality.

A lot of people fill up their tanks at least once a week. But if you fill up at Costco, you might save yourself $0.20 per gallon or more. If that amounts to $2 in savings per week, and you fill up 50 weeks out of the year, that’s $100 you’ve made back right there, which is way more than the $65 a basic membership costs.

You should also know that Costco gas holds the TOP TIER™ designation, which means it’s certified to be high in quality and lead to better engine performance. So if you fill up at Costco — which you can only do as a member — you might save money on gas not just because it’s priced competitively, but because it gives you better mileage.

And if you like the sound of that, make sure to use the right credit card when you fill up your tank to maximize rewards on gas purchases and save even more.

So there you have it. The perks of getting a Costco membership are by no means limited to savings on eggs and tissue boxes. You can enjoy a world of benefits as a member, so it pays to sign up and give Costco a try.

And remember, Costco stands behind its memberships and lets you cancel at any time for a refund. For this reason, there’s truly nothing to lose by giving the store a chance.

Top credit card to use at Costco (and everywhere else!)

We love versatile credit cards that offer huge rewards everywhere, including Costco! This card is a standout among America’s favorite credit cards because it offers perhaps the easiest $200 cash bonus you could ever earn and an unlimited 2% cash rewards on purchases, even when you shop at Costco.

Add on the competitive 0% interest period and it’s no wonder we awarded this card Best No Annual Fee Credit Card.

Click here to read our full review for free and apply before the $200 welcome bonus offer ends!

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.Maurie Backman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale. The Motley Fool has a disclosure policy.

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