This Costco Tip Could Pay for a Membership in One Purchase

An annual Costco membership costs $60 for Gold Star and $120 for Executive. Most Costco shoppers will recoup the cost of their membership by shopping frequently at the warehouse store and buying items in bulk versus individually at grocery stores. But there is one purchase that will -- if you time it right -- save you the cost of your membership (plus more) instantly. That's right -- I'm talking about Costco tires.

How Costco Tire Center can save you $100 to $150

Every now and then, Costco will knock $100 to $150 off the final cost of tires when you buy four from a specific brand. For example, from June 12 until July 23, Costco will give you a $150 discount ($70 off the tires and $80 off installation) when you buy four Bridgestone tires and have them installed at the Tire Center.

With a $150 discount, you could cover your Gold Star Membership, plus get $90 back in extra savings.

What's more, if you wanted to try an Executive Membership and earn 2% back on Costco purchases, the Tire Center's $150 promotion would cover your $120 dues and give you $30 back in savings.

That's an amazing deal. But how do Costco's tire prices compare?

Of course, this discount only works if buying Bridgestone tires at Costco is cheaper than other discount tire shops. In other words, if you save $150, but the base tire price is higher than other stores, you're not saving as much as the advertised promotion.

But don't worry -- as is typical of the warehouse retailer, Costco's tire prices are nearly always on par with or lower than other tire shops.

For example, let's say you're buying Bridgestone tires for a Toyota Prius. One option is the Bridgestone ECOPIA EP422, which is an all-season tire. Here's how much you would pay to buy and install four tires from Costco, Tire Rack, and Walmart:

Costco and Tire Rack are close in price, but Costco has the better deal by around $40, assuming installation at Tire Rack is $100 or more. What's more is that Costco shaves $150 off your total purchase price, whereas Tire Rack will only take off $50 and send you a $70 Visa Prepaid Card after you file a rebate. Personally, I would rather save money than receive a prepaid card, but if you use the card on essential expenses your personal finances would likely balance out.

Should you get a Costco membership to buy tires?

If you're not a Costco member, and you need tires right now, it's worth considering becoming a member to take advantage of this promotion. As long as you're okay with Bridgestone tires, you can save $150 instantly, which pays your membership dues. You can compare offers at discount tire stores yourself, but more often than not Costco's tires and installation costs will be lower than its competitors. Plus, you can start saving on other Costco products, like groceries, clothes, and phones, adding to your overall savings.