Comparing rental car deals: Costco vs. BJ's and Sam's Club
Costco's flexible cancellation policy allows travelers to rebook rental cars at lower rates. Credit: AP Photo/Gene J. Puskar/AP Photo/Gene J. Puskar
Nikki Oeler discovered the best deals on rental cars in the same place she buys bulk toilet paper and rotisserie chicken.
“I used to look at Expedia and the other platforms, but nothing beats Costco,” said Oeler, a Pittsburgh-based landscape architect and mother of a teen daughter.
Costco, the global retailer with the membership-only hangars of household goods, is known for its bargains on products ranging from eggs to socks to hearing aids. Since launching Costco Travel in 2000, the company has also gained a fervent following among travelers who claim it has the best rental car rates.
How to book a Costco rental car
Costco does not carry a Kirkland brand of rental cars. It partners with Alamo, Avis, Budget and Enterprise in Britain, Canada, France, Germany, Ireland, Spain and the United States, including Puerto Rico and the U.S. Virgin Islands.
Only the primary driver must be a member (from $65 annually); the free additional driver can be a non-clubber. To book a car, plug your trip details into the Costco Travel site, and the rates from the four rental car companies will pop up. The lowest price in each vehicle category appears in red.
So, how much cheaper are Costco’s cars?
Clint Henderson, an expert with the Points Guy travel website, said members can save up to 40 percent, but 10 to 25% is more common.
“I think people sleep on Costco Travel,” Henderson said. “Because they’re such a big company, they’re able to negotiate some killer rates.”
Sally French, a lead writer with NerdWallet, said that with a little effort, you may be able to find a better rate than Costco provides, especially if you can apply credit card benefits or a promotion. However, Costco Travel is a worthwhile competitor in the budget travel arena.
Rebook for a cheaper rate without penalty
Though members book through Costco, the rental car agency handles the reservation, payment and other extras, such as insurance, transponder rental and vehicle assignments.
Because travelers do not pay until they arrive at the rental car counter, there are no penalties for canceling your reservation.
The generous cancellation policy can unlock additional savings. Oeler recommends reserving a car as soon as possible and checking back to see whether the price has dropped. If it has, you can cancel the reservation and rebook at the lower rate, even on pickup day. To be safe, she will book the new reservation before canceling the old one.
“There have been times where we’re sitting in the airport, getting ready to board the plane, and we check the rate and it’s dropped $25 or $30,” said Oeler, who once pocketed $100 on a New Mexico car rental.
For additional benefits, sign up for the rental car company’s loyalty program and add the membership number at the time of booking.
Comparing wholesale clubs
Sam’s Club and BJ’s Wholesale Club also hand over the rental car keys to members. But subscribers to multiple clubs say Costco’s deals are superior.
French explained why.
“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 said.
Oeler, who is also a member of BJ’s, was curious about how the two compared. She tried booking an intermediate car in Myrtle Beach, South Carolina, for eight days in October through the two clubs and Expedia.
Costco was $50 less than BJ’s and Expedia, which quoted the same rate.
