Three little-known and not-so-pleasant facts about the Costco Executive subscription
Shopping at Costco is a great way to save money on everything from groceries to clothing to home goods. And if you upgrade to a Costco Executive membership, you can save even more. What gives Costco Executive, the edition told Fool.
Costco Executive costs $120 per year, double the cost of a basic membership. In return, you get 2% cashback, which is a pretty nice deal. In fact, the cashback may be enough to pay for your upgraded membership and then some others.
But if you're thinking about upgrading your Costco membership, it's important to know how the program works. Here are a few things you may not have known about Costco Executive.
1. You are limited to $1000 per year
If you shop at Costco often enough, you might be able to get a lot of money back from your membership. You should know that as soon as you accumulate $1000 through cashback, you will close the year.
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However, even to qualify for the $1000 cash reward, you would need to spend $50 a year at Costco. This is probably a lot more than you can imagine, even if you have a year.
2. Online purchases count
While Costco offers an impressive selection of products in its stores, you can find an even larger selection online. The good news is that online purchases are generally eligible for 2% cashback if you have a Costco Executive, so don't worry these orders won't count.
3. Car purchases are not eligible for cashback
In some cases, buying your next car through Costco can be a good deal. But, unfortunately, the purchase of a car will not be eligible for cashback. However, there are still many benefits to buying a car through Costco, including saving money, so it's worth looking into what models are available.
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Should you purchase Costco Executive
Costco membership is certainly not for everyone. If you don't shop a lot at Costco, then it might not be worth paying the extra $60 a year. But in any case, before making a decision, take a look at how an extended membership works and what benefits it offers.
Remember: Costco wants you to be happy with your membership. If you upgrade and find it's not worth it, you can always downgrade your membership to Basic and request a refund.
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