When it comes time to purchase a new appliance, most consumers instinctively head to a big box home improvement store or a dedicated appliance retailer. But there‘s another option that savvy shoppers should consider: Costco.
The membership-based wholesale club is best known for its bulk groceries and household essentials, but it also boasts an impressive selection of major appliances. And with Costco‘s reputation for quality, customer service, and competitive prices, it‘s definitely worth taking a closer look.
However, buying an appliance from Costco isn‘t quite the same as picking up a year‘s supply of paper towels. There are a few key things you need to know before taking the plunge on a Costco appliance purchase. In this comprehensive guide, we‘ll cover everything from pricing and brand selection to delivery and installation to financing options (or lack thereof).
Whether you‘re a long-time Costco member or considering joining just to access the appliance deals, read on for our expert tips and analysis. Your dream fridge (and wallet) will thank you.
Costco‘s Appliance Selection: More Than Meets the Eye
At first glance, your local Costco warehouse may not seem to have a huge appliance section. Compared to the seemingly endless aisles of appliances at a big box store, Costco‘s in-store selection can feel limited. However, looks can be deceiving.
According to a report from the analytics firm Gap Intelligence, Costco actually sold more major appliances in the U.S. than any other retailer in 2020, surpassing even Lowe‘s and Home Depot. So how does Costco do it with a smaller in-store selection?
The key is Costco.com. The retailer‘s website boasts a massive selection of appliances, including many models and brands that aren‘t available in the warehouse. In fact, Costco.com sells hundreds of refrigerators, ranges, dishwashers, and laundry units from some of the most popular brands, including:
- Samsung
- LG
- Whirlpool
- GE
- KitchenAid
- Maytag
- Frigidaire
- Cafe
Costco also sells a number of appliances under its own Kirkland Signature house brand. While perhaps not a household name like some of the brands above, Kirkland appliances offer many of the same features and quality construction at an often lower price point.
The bottom line? Don‘t judge Costco‘s appliance selection by the warehouse alone. Be sure to check out the full online selection as well, then compare the specs and prices to other retailers. You may be surprised at just how competitive Costco can be.
Pricing Comparison: How Does Costco Stack Up?
Speaking of price, let‘s take a closer look at how Costco‘s appliance prices compare to other major retailers. While Costco is known for offering competitive prices on most products, appliances can be hit or miss.
In a 2020 price comparison, Consumer Reports found that Costco wasn‘t always the cheapest option for large appliances. For a sample French door refrigerator, Costco‘s price was $300 higher than the best deal found elsewhere. A top-load washer and matching dryer also cost more as a set at Costco than at another retailer.
However, in other cases, Costco‘s prices do come out ahead. The same Consumer Reports analysis found that Costco offered the lowest price on a Whirlpool electric range, beating Home Depot, Lowe‘s, and Best Buy. And on a KitchenAid dishwasher, Costco was a close second to the best price found at a local independent retailer.
Of course, these are just a few examples, and prices can vary widely depending on the specific model, time of year, and current promotions. But the takeaway is that while Costco is certainly competitive on appliance pricing, it‘s not always the hands-down cheapest option.
To get a better sense of how Costco‘s prices stack up for the appliance you‘re interested in, it‘s best to shop around and get quotes from multiple retailers. Don‘t forget to factor in any delivery, installation, and haul-away fees, as well as taxes. These extra costs can add up quickly and may negate any upfront savings.
That said, Costco does offer some unique perks that can make it a more attractive option overall, even if the sticker price is slightly higher. More on that below.
Costco‘s Appliance Extras and Perks
Beyond just competitive pricing, buying an appliance from Costco comes with a number of valuable extras that many other retailers don‘t offer. Here are some of the key perks:
Free Delivery and Installation
One of the biggest benefits of buying an appliance at Costco is that basic delivery and installation are included in the purchase price. This can be a significant savings, as other retailers often charge extra for these services.
Costco partners with local delivery and installation teams to ensure a smooth experience. On the day of delivery, the team will:
- Bring the appliance into your home and unbox it
- Place it in the desired location
- Level and balance the appliance
- Connect to existing standard hookups (water, gas, electric)
- Test the appliance to ensure proper operation
- Remove and haul away all packaging materials
The team will also haul away your old appliance for free, as long as it‘s the same type (i.e. they‘ll take an old fridge when delivering a new one). This can save you the hassle and expense of disposing of the old appliance yourself.
Keep in mind that the included installation only covers basic hookups. If your home requires new water lines, gas lines, or electrical wiring to accommodate the appliance, you‘ll likely need to hire a separate contractor. And if you want the appliance installed in a location that isn‘t already set up for it, like an outdoor kitchen or basement, that will also incur extra installation costs.
2-Year Warranty and Additional Coverage
Another major perk of buying an appliance from Costco is the extended warranty coverage. Costco automatically extends the manufacturer‘s warranty on appliances and electronics to two years from the date of purchase. This is a significant benefit, as most manufacturer‘s warranties are only valid for one year.
If you experience any issues with your appliance during this two-year window, you can contact Costco Concierge Services for troubleshooting assistance and warranty support. This free technical support line can often resolve minor issues over the phone. And if an in-person repair is needed, they‘ll connect you with a local authorized technician and act as a liaison with the manufacturer if needed.
For even more protection, Costco offers optional extended warranty plans at the time of purchase. Dubbed "Costco Protect," these plans cover 100% parts and labor for mechanical and electrical failures, with no deductible. Costco Protect plans can extend your coverage to three, five, or even 10 years, depending on the appliance category.
Here‘s a breakdown of the extended coverage options and pricing for a sample $1,000 refrigerator:
| Coverage Period | Plan Price |
|---|---|
| 3 years | $99 |
| 5 years | $169 |
| 10 years | N/A |
Of course, whether the extra cost is worth it depends on your risk tolerance and how long you plan to keep the appliance. But for many shoppers, the peace of mind of an extended warranty is well worth the relatively low upfront cost.
90-Day Return Policy
Costco is famous for its generous return policy, and this absolutely extends to appliances. If you‘re not satisfied with your appliance purchase for any reason, you can return it to Costco within 90 days for a full refund.
This is a hugely valuable benefit, as most other retailers only allow returns on large appliances within 15-30 days, if at all. With Costco, you have a full three months to live with the appliance and make sure it meets your needs and expectations. If not, you can return it, no questions asked.
Keep in mind that due to the size of most appliances, you likely won‘t be able to return it to your local Costco warehouse. Instead, you‘ll need to contact Costco.com or the Concierge team to initiate a return. They‘ll then schedule a pick-up of the appliance from your home and process the refund.
This generous return policy can be especially appealing for online appliance purchases, as you don‘t have the opportunity to see the item in person before buying. With Costco, you can buy with confidence, knowing you have plenty of time to return the appliance if it doesn‘t work out.
The Downside: Limited Financing Options
For all its perks, there is one notable downside to buying appliances at Costco: the lack of financing options.
Unlike many other major retailers, Costco does not offer in-house financing or payment plans for appliance purchases. You won‘t find any "12 months same as cash" or "no interest if paid in full" promotions here. Instead, you‘ll need to pay the full price of the appliance upfront.
For a large purchase like a refrigerator or laundry set, this can be a significant outlay. According to data from HomeAdvisor, the average cost of a new refrigerator is $1,500 to $2,000, while a washer and dryer set can run anywhere from $1,000 to $3,000 or more. That‘s a lot of money to pay all at once, especially if the purchase is unexpected, like replacing a broken appliance.
If you were counting on being able to finance your Costco appliance purchase, this could be a deal breaker. You may need to consider other retailers that do offer financing options, even if it means sacrificing some of Costco‘s other perks and potentially paying a higher overall price.
However, there are a few potential financing workarounds to consider:
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Use the Costco Anywhere Visa Card: This co-branded credit card from Citi offers 2% cash back on all Costco purchases, including appliances. If you‘re an Executive Member, you get an additional 2% back, for a total of 4% cash back. While you‘ll still need to pay the full purchase price upfront, the cash back can add up to a sizeable discount, especially on a large appliance.
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Apply for a 0% APR credit card: If you have good to excellent credit, you may be able to qualify for a new credit card with a 0% introductory APR offer on purchases. These promotions typically last for 12-18 months, giving you time to pay off the appliance interest-free. Just be sure to make a plan to pay off the full balance before the promotion ends to avoid high interest charges.
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Use a personal loan: If you need more time to pay off the purchase, you could consider taking out an unsecured personal loan. Many online lenders offer competitive rates and terms, especially if you have good credit. Just be sure to factor in the cost of interest over the life of the loan.
Another option is to start saving up for the appliance purchase ahead of time. If you know you‘ll need to replace a major appliance in the near future, setting aside money each month can make the cost more manageable when it‘s time to buy. Admittedly, this requires some advance planning, but it can be a smart way to avoid financing altogether.
Getting the Best Deal on Costco Appliances
Even without financing options, Costco appliance prices are often very competitive. And when you factor in the included delivery, installation, and extended warranty, the overall value proposition can be quite strong.
However, there are a few additional ways to save even more on your Costco appliance purchase:
1. Wait for a sale
Like most retailers, Costco runs regular sales and promotions on appliances. These are often tied to major holidays like Memorial Day, Fourth of July, Labor Day, and Black Friday.
Appliance discounts during these sales can be significant, often $100-$500 off regular prices. If you have some flexibility in your timeline, it can pay to wait for one of these sales events.
To stay on top of upcoming promotions, keep an eye on the "Warehouse Savings" and "Online Offers" sections of the Costco website. You can also sign up for email alerts or follow Costco on social media for advance notice of sales.
2. Shop the "Special Offers" section
In addition to the broad sales events noted above, Costco.com has a dedicated "Special Offers" section for appliances. Here you‘ll find limited-time deals, exclusive bundle offers, and instant manufacturer rebates.
At the time of this writing, the Special Offers section included:
- $700 off a GE Profile French door refrigerator
- $500 off a KitchenAid built-in dishwasher
- $50-$100 off select Whirlpool laundry pairs
- Up to $1,500 off GE Cafe kitchen bundles
These offers tend to change frequently, so it‘s worth checking back often, especially if you‘re in the market for a specific appliance brand or model.
3. Negotiate the price (yes, really)
Most people don‘t think of Costco as a place to haggle, but when it comes to big ticket items like appliances, it never hurts to ask for a discount.
While you probably won‘t have much luck negotiating in the warehouse, Costco.com customer service representatives may have some wiggle room, especially on display models, open-box items, or appliances that have been sitting in the inventory for a while.
When you call to place your appliance order, don‘t be afraid to ask if there are any additional discounts available. The worst they can say is no, and you might be pleasantly surprised at what they can offer.
Even if you can‘t get the price down, it‘s still worth asking about free or discounted delivery, installation, or haul-away services. These added fees can really add up, so getting them waived or reduced can result in significant savings.
The Bottom Line
Whether you‘re a long-time Costco member or just considering joining, buying your next appliance from the warehouse club is definitely worth considering. From competitive prices to included delivery and installation to a generous warranty and return policy, Costco offers a compelling value proposition for appliance shoppers.
The lack of financing options can be a significant drawback for some buyers, especially those who need to make an unexpected appliance purchase. However, for those who can pay upfront or find a viable financing workaround, Costco‘s pricing and perks are hard to beat.
As with any major purchase, it pays to do your research and shop around before committing to an appliance from Costco (or anywhere else). Read reviews, compare prices and specs, and consider your own unique needs and budget constraints.
But if you find a Costco appliance that checks all your boxes, don‘t hesitate to take advantage of the warehouse club‘s many benefits. With a little savvy shopping and a bit of luck, you might just score the appliance deal of a lifetime. Happy shopping!
