GM has a secret to help sell its new EVs. It's Costco.
How does the average transaction price for electric vehicles compare to gas-powered vehicles in the U.S. as of April?
As of April, the average transaction price for electric vehicles in the U.S. was $55,242, according to Cox Automotive. This is more than $10,000 higher than the average price for gas-powered vehicles.
How does the Costco Auto Program work as a facilitator between automakers like GM and consumers?
The Costco Auto Program acts as a facilitator between automakers like GM and consumers by offering Costco members special pricing on vehicles through discounts and other incentives. The program partners with automakers to provide nationwide discounts and also has partnerships with more than 3,000 franchised dealers in the U.S., which it calls its "Everyday Auto" program. The sweeping discounts from automakers can be used at any franchised dealer, or Costco will suggest a partner dealer where shoppers can work with a Costco Auto-trained employee. These dealers offer haggle-free pricing that is competitive with their market, providing a pre-negotiated price that is updated monthly to ensure it remains market competitive.
What percentage of vehicle sales facilitated by Costco Auto in 2023 were electric vehicles?
In 2023, about 7% of vehicle sales facilitated by Costco Auto were electric vehicles. This number is expected to grow as General Motors and other automakers expand their electric vehicle offerings and partner with Costco to reach their customer base.