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A Costco membership has the potential to offer a lot of value. But read on to see why canceling yours might make sense this July. [[{“value”:”
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As someone who shops at Costco weekly, I can’t imagine giving up my membership. Doing so could easily cost me hundreds of dollars a year in lost savings on groceries and household essentials like cleaning products and paper goods.
But you may be in a much different boat. And if these situations apply to you, then it may be time to part ways with Costco this July.
1. You’ve given up your car to save money
AAA reports that it now costs $12,182 a year to own a new car. That’s more than $1,000 a month.
If you’ve recently decided to give up your car and get by using public transportation, you may be saving a lot of money as a result. But not having a car could make Costco shopping very difficult.
Sure, you could always ask to borrow a car from a friend, or use a ride-hailing app. But are you going to do that often enough to make a Costco membership worth keeping?
Remember, shopping on Costco.com doesn’t offer quite the same value as going to an actual Costco store. Costco builds the cost of shipping and handling into its online prices so you’re generally paying more compared to buying the same item in a store. So if your plan is to turn to Costco.com after giving up your car and use Costco that way, you may want to rethink it.
2. You constantly overspend at Costco
Costco’s inventory extends well beyond bulk groceries and household essentials. You can buy everything from clothing to electronics to toys at Costco.
That’s a good thing in theory, since it’s convenient to have a nice selection of reasonably priced products all under the same roof. But that setup could also lead to a world of overspending on your part.
In fact, if you can admit that you pretty much always buy extra items when you do your Costco shopping, then it may be time to cancel your membership. The savings you get on your groceries may be wiped out completely by the extra purchases you make. In fact, if you only save $15 a week on food but typically spend $30 on unplanned buys, you’re making your financial situation worse.
3. The shopping experience just isn’t a pleasant one
The savings I get at Costco is enough to push me to endure the crowded parking lot, packing aisles, and always-long checkout lines. But if you’ve come to really hate shopping at Costco, then it may be time to cancel if your savings aren’t as substantial as mine.
Of course, the magic savings number that makes an unpleasant shopping experience worth it is up to you. But if you’re only saving about $15 to $20 per month, your well-being may be worth prioritizing. To put it another way, unless you’re really saving a large amount of money like I am, it may not be worth putting yourself through the torture of a weekly Costco run you dread.
A Costco membership has the potential to offer a lot of value. But if these scenarios apply to you, it may be time to stop paying for one.
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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Maurie Backman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale. The Motley Fool has a disclosure policy.
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