Costco members get discounted rates through Budget Car Rental, but the savings depend on where you rent and how long you keep the car

Costco and Budget Car Rental have a partnership that gives Costco members access to a discount code for Budget rentals. The discount typically ranges from 5% to 40% off the standard daily rate, though the actual savings vary by location, vehicle type, and rental length. You don't need to do anything special to join the program — if you have a valid Costco membership, you can use the code when you book.

The partnership works because both companies benefit: Costco members feel their membership pays for itself through travel discounts, and Budget gains customers who might not have rented otherwise. However, the discount is only the starting point. Your final bill depends on taxes, fees, insurance choices, and what the base rate is at that specific location on that specific date.

Key Takeaways

  • Costco members can book Budget rentals at discounted rates using a code found in the Costco Travel section or through the Costco mobile app.
  • The discount percentage varies widely — sometimes 5%, sometimes 40% — depending on the rental location, vehicle class, and how many days you rent.
  • Budget's base rates already include some fees, but taxes, airport surcharges, and optional insurance are added on top and are not discounted.
  • The Costco Travel website shows you the final price with the discount applied before you commit, so you can compare it to other rental companies.
  • Costco membership itself costs money, so the rental discount alone may not pay for the membership unless you rent cars regularly.

How to access the Costco-Budget discount

The discount code is available through Costco Travel, which is Costco's travel booking service. You can reach it by logging into your Costco account online, going to the Travel section, and selecting "Car Rentals." From there, you search for your rental dates and location, and Budget will appear as one of the options with the Costco member discount already applied to the price shown.

If you prefer to use the Costco mobile app, the same process works: open the app, tap Travel, then Car Rentals, and search as normal. The app shows you the discounted rate before you book, so you can see exactly what you'll pay. You do not need to enter a separate code — the discount is automatic when you book through Costco Travel.

You can also call Budget directly and provide your Costco membership number, though booking online through Costco Travel usually shows the discount more clearly and lets you compare it to other rental companies at the same time.

What the discount actually covers and what it doesn't

The Costco-Budget discount reduces the daily rental rate — the base cost of renting the car itself. If the standard rate is $60 per day and you get a 20% discount, you pay $48 per day. That savings applies to every day of your rental, so a five-day rental saves you $60 total.

The discount does not cover taxes, airport facility fees, or optional add-ons like insurance, GPS, or fuel plans. If you rent from an airport location, Budget charges an airport concession fee on top of the daily rate — that fee is not discounted. State and local taxes are calculated on the final rental amount and are not reduced by the Costco discount. If you add a damage waiver or decline the rental company's insurance in favor of your own, those choices affect your total cost but are separate from the daily rate discount.

This matters because a $48-per-day rate can become $65 per day once taxes and fees are added. The discount is real, but it is not a discount on the entire bill — it is a discount on one part of it.

Why the discount percentage changes between rentals

Budget's discount through Costco is not a fixed percentage. The same Costco member might see a 10% discount in one city and a 35% discount in another, or a 5% discount for a three-day rental and 25% for a seven-day rental. This happens because Budget sets the discount based on local demand and inventory.

When a Budget location has many cars available and few bookings, they offer a deeper discount to fill those cars. When demand is high — during peak travel season or in a popular destination — the discount shrinks. The discount also depends on the vehicle class: renting a compact car might have a larger discount than renting an SUV, because compact cars are cheaper to begin with and the discount percentage is applied to a smaller base number.

The Costco Travel website shows you the final price with whatever discount is available on your specific dates and location before you book, so you can see the actual savings rather than guessing at a percentage.

Comparing the Costco-Budget deal to other rental companies

The Costco Travel website lets you search multiple rental companies at once, so you can see Budget's discounted price next to Hertz, Enterprise, Avis, and others on the same screen. This is the fastest way to know whether the Costco-Budget discount is actually the cheapest option for your trip. Sometimes it is; sometimes a competitor's standard rate is lower even without a membership discount.

If you have memberships with other organizations — AAA, AARP, military status, or a credit card that offers rental discounts — you may be able to stack those discounts or choose the best one. Budget allows some discounts to be combined, but not all. Before you book, check whether your other memberships offer a car rental discount and compare the final price to what Costco Travel shows.

The real value of the Costco-Budget partnership is convenience and transparency: you see the discounted price upfront, you can compare it to other companies in seconds, and you do not have to hunt for a code or call to confirm the discount applies. That transparency is worth something, even if the price is not always the lowest.

What happens when you pick up and return the car

When you arrive to pick up your Budget rental, bring your Costco membership card or the confirmation email from your Costco Travel booking. Budget will verify that the discount was applied to your reservation. If you booked through Costco Travel, the discount is already locked in and cannot be removed at the counter.

The rental agreement you sign at pickup covers the terms of the rental — how much damage is your responsibility, what happens if you return the car late, and whether you accepted or declined the rental company's insurance. The Costco discount does not change any of these terms. You are still responsible for returning the car on time, in the same condition you received it, and with a full tank of fuel (unless you purchased a fuel plan).

When you return the car, the discount has already been applied to your bill. You will not see a separate line item for it — it is built into the daily rate you were charged. If there are additional charges (late return, damage, extra mileage if applicable), those are added after the fact and are not discounted.

Whether the Costco membership pays for itself through car rentals alone

Costco membership costs money — either $65 per year for a Gold Star membership or $130 for an Executive membership. To break even on the membership through car rentals alone, you would need to rent cars frequently enough that the discounts add up to at least that amount.

If you rent a car for five days at $50 per day and receive a 20% discount, you save $50 total. You would need to make that same rental 1.3 times per year (roughly every nine months) to break even on a $65 Gold Star membership. If you rent less often than that, the car rental discount alone does not pay for the membership. However, Costco membership includes discounts on gas, groceries, travel packages, and other services, so many members find the membership worthwhile for reasons beyond car rentals.

If you already have a Costco membership for other reasons, the car rental discount is a bonus. If you are considering membership primarily for the car rental savings, calculate how often you actually rent cars and whether the discount on those rentals would exceed the membership cost.

Frequently Asked Questions

Can I use a Costco-Budget discount code if I book directly on Budget's website instead of through Costco Travel?

You can call Budget and provide your Costco membership number, and they will explore the discount to a direct booking. However, booking through Costco Travel is simpler because the discount is already applied and you can see the final price before you commit. Calling Budget requires you to confirm the discount applies, which adds an extra step.

Does the Costco discount work at all Budget locations worldwide?

The discount is available at most Budget locations in the United States and Canada, but availability varies by location and date. The Costco Travel website will show you whether the discount is available for your specific rental location and dates. International Budget locations may not honor the Costco discount, so check before you book.

What if I have a credit card that offers rental car discounts — can I use both the Costco discount and the credit card discount?

Budget allows some discounts to be combined, but not all. The safest approach is to book through Costco Travel (which applies the Costco discount), then contact Budget before pickup to ask whether your credit card discount can be added on top. Budget's customer service can tell you whether the two discounts stack or whether you have to choose one.

If I decline the rental company's insurance, does the Costco discount still explore?

Yes. The Costco discount applies to the daily rental rate regardless of whether you accept or decline the rental company's insurance. Your insurance choice is separate from the discount. If you have coverage through your personal auto insurance or credit card, you can decline Budget's insurance and still receive the Costco discount on the base rate.

Can I book a Costco-Budget rental as a gift for someone else who has a Costco membership?

You can book the rental and provide the confirmation to someone else, but Budget will ask for the Costco member's membership card or number at pickup to verify the discount was authorized. The person picking up the car should have their own valid Costco membership card with them, or the discount may not be honored.