This Company Could Soon Be The Number One Auto Seller

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Costco sells more than just bulk soda and toilet paper. The budget retailer sells cars too and just announced on Saturday that it is partnering with General Motors for its popular Holiday Sales Event, which will last from October 1 to January 3.

In 2015, Costco sold 58,000 vehicles during the promotion, which was a 34% increase over 2014 sales.

What’s even more impressive is that more than half of the people who purchased vehicles through the event said they switched to a General Motors brand such as Chevrolet, Buick, or Cadillac because of the promotion.

While Costco does not itself sell the cars, and doesn’t make any money on the auto sales, it uses the program to attract new members and maintain existing members’ interest.

The number one auto retailer in the US is AutoNation, who sold 533,000 vehicles in 2014. Costco is not that far behind. In 2015, Costco sold 465,000 vehicles through partnerships with auto dealers.

Disclaimer: We have no position in Costco Wholesale Corporation (NASDAQ: COST) and have not been compensated for this article.