Is Costco Travel Car Rental Cheaper Than Booking Direct? (US 2026)

Costco Travel car rental is sometimes cheaper than booking direct in the US in 2026, but not always, so price the same car both ways before you book. Executive members earn Costco's 2% Reward on qualifying Costco Travel purchases once travel is completed, according to Costco. Booking direct gets you the rental company's own deals, such as Avis Pay Now rates of up to 35% off time and mileage. Go through ShopBack before you book direct and part of what you pay comes back to you as cash.

So the real question is not which site shows the lower number, but which booking costs less after everything that comes back to you. This page walks through that math, then answers the second question many travelers ask: whether an AARP discount is worth using.

ShopBack US is a free Cashback app and website. Car rental companies such as Budget and Avis are stores on ShopBack US. Booking through ShopBack lowers the cost of the trip, and you still book on the site you chose. Costco Travel bookings are not eligible on ShopBack at the time of writing, but a new Costco membership started from ShopBack's Costco page is. Join ShopBack US free here.

---

Is Costco Travel car rental actually cheaper than booking direct?

It depends on the trip: Costco Travel can come out ahead when its price is close to or below the direct rate and you are an Executive member, while booking direct often wins when the rental company is running a prepaid sale or you have a member rate. Here is what each route gives you, from the companies' own pages at the time of writing.

What you get	Costco Travel	Booking direct (for example Avis or Budget)
Who can book	Offered as a Costco membership benefit	Anyone
Money back after the trip	Executive Reward on qualifying purchases, Executive members only	Money from ShopBack when you start from the company's ShopBack page
Reward cap	$1,250 a year across all Costco spending	Set per booking by the rate on ShopBack's store page
Direct-only deals	Not applicable	Avis and Budget list Pay Now savings of up to 35% and member rates such as AARP
Price match	Check Costco Travel's own terms	Avis says it will match a lower rate for an Avis rental found on another site and add a further discount
Exclusions	Costco excludes rental car equipment, surcharges and upgrades from the 2% Reward	ShopBack excludes taxes, fees and codes not featured on ShopBack

The rule of thumb: check Costco Travel and two direct sites for the same car class, dates and pickup location. Use the final total with taxes and fees, not the daily rate.

---

How to compare the effective price

The effective price is what you pay minus what ShopBack returns, or minus the 2% Reward if you book on Costco Travel as an Executive member. Comparing that number is the only way to see which booking is actually cheaper.

A worked example, using made-up prices and an illustrative rate only. Say you need a midsize car for a week:

Scenario	Price shown	Money back	Effective price
Costco Travel, Executive member	$310	About $6.20 (2% Reward)	About $303.80
Avis direct through ShopBack	$300	$3.75 (at an illustrative 1.25%)	$296.25
Avis direct, Pay Now, through ShopBack	$270	$3.38 (at an illustrative 1.25%)	$266.62

In this example the direct booking wins, because the price gap is bigger than the difference in money back. Flip the prices, with Costco Travel at $280 and the direct rate at $300, and Costco Travel wins. Real prices change by date, airport and car class, so run your own search. The live ShopBack rate for each company is on its ShopBack page: Budget and Avis.

Two details change the math:

• The 2% Reward is paid later, and only once a year. Costco says it is issued about three months before your membership renewal date, and only to Executive members who are still paid members at the end of the membership year.
• ShopBack confirms after the rental. ShopBack's Avis and Budget pages say bookings are tracked in about 2 days and confirmed about 120 days after travel. Cancellations, no-shows and changes that create a new booking ID are not eligible.

---

Costco membership and the Executive Reward on travel

Costco presents Costco Travel as a membership benefit, and only the Executive tier earns money back on it: an annual 2% Reward on qualifying purchases made directly from Costco Travel, once travel is completed. Costco's Executive Reward terms, at the time of writing, set the rules:

• What counts: qualifying travel bought directly from Costco Travel, once the trip is done.
• What does not: surcharges, gratuities, trip protection, travel bought through a third party, upgrades, rental car equipment, resort charges and port charges.
• The cap: $1,250 in any 12-month period, across all your Costco and Costco Travel spending.
• The cost: Executive is $130 a year and Gold Star is $65, plus sales tax, according to Costco's join page. The Executive upgrade only pays for itself at about $3,250 a year of qualifying spending.

Costco's join page also lists "additional value on Costco Travel" for Executive members on select Costco Travel packages. Check what applies to rental cars when you search, because packages and rental-only bookings can differ.

If you are not a member yet, a Costco Travel rental on its own is unlikely to justify the fee. If you shop at Costco anyway and plan to join, start the new membership from ShopBack's Costco page: ShopBack's Costco terms make new sign-ups eligible, while renewals, upgrades and purchases at Costco, including travel, are not. For a fuller breakdown of the fees, see How Much Is a Costco Membership, and Is It Worth It?

---

When booking direct usually wins

Booking direct usually wins when the rental company is running a prepaid discount, when you qualify for a member rate, or when you want to earn on the booking through ShopBack. Here is what the two Avis Budget Group brands list at the time of writing:

• Avis Pay Now: Avis says Pay Now rates save up to 35%, applied to time and mileage charges only, with taxes, fees and surcharges extra. The offer is for US and Canadian residents at participating US locations.
• Avis Best Price Guarantee: if you find a lower rate for an Avis rental on another site, Avis says it will match that price and add a further discount.
• Budget Pay Now: Budget's offers page lists a Best Price Guarantee with savings of up to 35% when you pay now.
• Member rates: both companies list partner rates, including AARP and military rates through WeSalute at Avis.

Before you check out, go through ShopBack to get a post-purchase discount on the order. Open the company's page on ShopBack, tap through, and finish the booking in the same session. Cashback lowers what you actually pay for an order. It comes back as cash, so it works like a discount on the price, not like points or miles.

Our guide to the best car rental deals in the US covers more ways to save.

---

Does AARP give a good discount on rental cars?

Yes, AARP can give a worthwhile rental car discount: at the time of writing, Avis lists an AARP rate of up to 30% off base rates, and Budget lists AARP among its partners. Avis also says AARP members can earn credit toward future rentals. The catch is that the discount applies to the base rate, so your saving on the final total, after taxes and airport fees, is smaller than the headline number.

How to judge whether the AARP rate is a good deal for your trip:

1. Price it against Pay Now. Avis Pay Now is advertised at up to 35% off time and mileage. On some dates the prepaid rate beats the AARP rate, on others it does not, and you can usually apply only one discount to a reservation.
2. Price it against Costco Travel if you are a Costco member, using the full total.
3. Look at the total, not the percentage. Taxes and fees are the same whatever discount you use, so on short airport rentals they can be a large share of the bill.
4. Check the flexibility. Member rates paid at the counter are usually easier to change than prepaid rates.

This route only helps if you already hold an AARP membership or plan to join for other reasons, so count any membership fee as part of the cost.

---

Avis vs Budget with AARP: which is cheaper?

Neither is always cheaper; Avis and Budget are sister brands under Avis Budget Group, both accept AARP member rates, and prices differ by location, car class and date. The quickest way to find out is to run the same search on both sites with your AARP member number.

What to compare	Avis	Budget
AARP rate	Listed on Avis's coupon page as up to 30% off base rates, at the time of writing	AARP listed among Budget's partners; the booking form asks for an AARP member number
Prepaid discount	Pay Now, up to 35% off time and mileage	Best Price Guarantee, up to 35% off when you pay now
Discount code name	AWD (Avis Worldwide Discount)	BCD (Budget Customer Discount)
On ShopBack US	Yes, Avis	Yes, Budget

One thing to know if you also want ShopBack Cashback: ShopBack's Avis and Budget pages exclude purchases made with vouchers or promo codes not featured on ShopBack, and AARP and other partner rates are applied with an AWD or BCD number. Price the booking both ways, with your AARP number and with the best rate through ShopBack, and check the store's ShopBack terms before you choose.

---

Frequently asked questions

Is Costco Travel car rental actually cheaper than booking direct?

Sometimes, not always. The only fair test is the full total, with taxes and fees, for the same car, dates and pickup location. Then subtract what comes back: about 2% through Costco's Executive Reward if you book on Costco Travel as an Executive member, or the cash ShopBack returns if you book direct with a company such as Avis or Budget through ShopBack.

Do Costco Travel car rentals earn the Executive 2% Reward?

Usually yes. Costco's Executive Reward terms say qualifying purchases made directly from Costco Travel earn the 2% Reward once travel is completed. The same terms exclude surcharges, gratuities, trip protection, travel bought through a third party, upgrades and rental car equipment. The reward is capped at $1,250 a year.

Does AARP give a good discount on rental cars?

It can. At the time of writing, Avis lists an AARP rate of up to 30% off base rates and says AARP members can also earn credit toward future rentals, and Budget lists AARP among its partners. Base rates exclude taxes and fees, so the saving on your final total is smaller, and Avis Pay Now rates can sometimes beat it, so compare both.

Is the AARP rate better at Avis or Budget?

Neither wins every time. Avis and Budget are both brands of Avis Budget Group, and both accept AARP member rates, but prices differ by location, car class and date. Run the same search on both with your AARP number, then compare the totals after taxes and fees.

Can I get Cashback on a Costco Travel car rental?

Not through ShopBack at the time of writing. ShopBack's Costco terms say only new Costco membership sign-ups are eligible and purchases made at Costco are not. If you book the car direct with a rental company on ShopBack, such as Avis or Budget, the booking can earn Cashback.

Do I need a Costco membership to book a rental car on Costco Travel?

Usually yes. Costco presents Costco Travel as part of its membership benefits, so plan on needing an active membership, and the 2% Reward on Costco Travel only applies to Executive members. If you are not a member, the Gold Star fee is $65 a year and Executive is $130, plus tax, according to Costco, so factor that in unless you already shop there.

Can I use an AARP discount and still earn ShopBack Cashback?

Check before you book. ShopBack's Avis and Budget pages exclude purchases made with vouchers or promo codes not featured on ShopBack, and an AARP rate is applied with a discount number. Price the booking with and without the AARP number, and read the terms on the store's ShopBack page.

What is the cheapest way to book a rental car in the US?

Compare the same car on Costco Travel, if you are a member, and direct with two or three rental companies, including any member rate you qualify for and prepaid rates such as Avis Pay Now. Then compare the effective price: what you pay minus what comes back from the Executive Reward or from ShopBack.

What is Avis Pay Now?

Avis says Pay Now rates save up to 35% when you pay at booking, at the time of writing. The saving applies only to time and mileage charges, taxes and fees are extra, and the offer is for US and Canadian residents renting at participating US locations. Prepaid bookings usually come with stricter change rules, so check them first.

---

Key takeaways

• Costco Travel car rental is sometimes cheaper than booking direct, not always. Compare full totals for the same car.
• Executive members earn Costco's 2% Reward on qualifying Costco Travel purchases after the trip, capped at $1,250 a year.
• Direct bookings get company deals such as Avis Pay Now (up to 35% off time and mileage) and Budget's prepaid discount.
• AARP rates at Avis are listed at up to 30% off base rates, so the saving on the final total is smaller.
• Compare the effective price, what you pay minus what comes back, before you book.

Booking direct? Open Budget or Avis through ShopBack, tap through and book in the same session, so part of what you pay comes back as cash. Setup takes about two minutes at shopback.com/signup.

---

Related articles

• Where Do I Find the Best Car Rental Deals in the US in 2026?
• How Much Does AAA Actually Save on Rental Cars in 2026?
• Why Does Enterprise Put a $200 Hold on Your Card? (US 2026)
• How Much Is a Costco Membership, and Is It Worth It? (US 2026)

Sources

• Costco Wholesale: Executive Rewards terms and Join Costco page, read October 2026.
• Avis: Car Rental Coupons and Discounts page and Best Price Guarantee terms, read October 2026.
• Budget: US coupon codes and offers page, read October 2026.
• ShopBack US: Costco, Avis and Budget store pages and terms, read October 2026.

Note: All prices in the worked example are made up to show the math. Rental prices change by date, location and car class, so run your own search before booking.

Disclaimer

The views and recommendations expressed in this article are those of the author.

Costco membership fees, Executive Reward terms, rental company offers and AARP rates are set by Costco, Avis, Budget and their partners and can change. Cashback rates, eligible bookings and exclusions on ShopBack vary by store and over time and are shown on each store's ShopBack page. Please check current terms before making any decisions.

This article is intended for general informational purposes only and should not be considered professional, financial, or travel advice.