Costco Is A Surprisingly Cheap Place To Replace A Key Fob

Costco Wholesale is known for many things. You can spend $1.50 (or the local currency equivalent) for a hot dog and a fountain drink anywhere in the world. You can get a new set of tires for your car and possibly save money compared to going to a place like Tire Rack. You can buy a replacement battery for your car. You can get discounted gasoline compared to local stations, and you can even get a discount on a brand-new car without negotiation or hassle. But what about a replacement car key? 

Car Keys Express, a company that's partnered with Costco, has expanded from trial offerings to a full-fledged program rolling out to 500 locations across the United States and Canada. Operating out of service vans at each location, it has over 600 unique SKUs and 1,000 smart keys, covering 90% of all cars on the road today. The service can be completed while the customer shops; no appointment is needed. 

While individual pricing isn't available on Costco's website, the company does host savings events at certain stores. Car Keys Express itself claims its pricing is up to 50% less than what you'd pay at a dealer. A smart key can typically cost around $320, with some keys being almost $500. Half of that price would represent significant savings.

Not every single make and model is covered by this program, though. Extremely modern vehicles might not yet have this option, which makes sense because software updates will always take a little time. You also might have trouble getting replacement keys for some German-made vehicles through the program.

Offering a key replacement option made sense to Car Keys Direct's chief commercial officer, Kirk Stewart. "Replacing a car key used to mean scheduling an appointment, waiting all day and paying a steep price at the dealership," he said in an interview with Auto Remarketing. The company also expects that 40% of consumers would purchase an additional key if it was more affordable. Certainly, having an extra key when it comes time sell or trade-in your car increases the value of that trade-in.

Additionally, this service helps break a monopoly on key replacements. Car Keys Direct's CEO Mark Lanwehr said in that same interview, "Our success at Costco proves, when given the opportunity, consumers are eager to embrace alternatives to the 30-year monopoly of car dealership key replacement." While it might not be the first thing on your mind when you go to Costco, if you need or want to get another key for your ride, you can do so there. (And, unlike other items in the store, you don't have to purchase them in bulk.)