Last post on May 17, 2013 at 2:32 PM
You are in the Prices Paid - Buying & Leasing Experiences
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Subaru Forester, Wagon, SUV
#1167 of 3509 Bought 06 Forester 2.5X Manual [Tracks 66]
Jun 29, 2006 (10:18 am)
I just bought a new 2006 Forester 2.5x 5 speed at Lancaster County Motors in Lancaster Penna.
Base price was $21795
auto dimming mirror and compass $183.00
Equipment group 1H $298.00
This gave me a total sticker price of $22,892.00
They deducted Subarus $2000 and the deducted another $2570 from the price. So my price was $18,322.00 plus tax,tag etc. I thought this was a good price so I bought my first Subaru.
Is this a good price for the car and could someone tell me how a dealer can give a discount of $2570 on a car and make any money? This dealer had row after row of 2.5X`s in stock and the window stickers were from all different dealers. The one I bought was from a dealer in Hanover Penna. Apparently he is buying up stock from other dealers in the area but how is he making any money with the discounts he is giving to customers.
I hope he is making money some where so he stays in business because I will probably need parts and service somewhere in the life of this car.
I bought my wife a new Acura RL from Jones motors in Lancaster Pa. where I got a good deal but not as good as the Subaru percentage wise. Both were good experiences, no pressure or hassle.
Jun 29, 2006 (10:44 am)
how a dealer can give a discount of $2570 on a car
You robbed them. Did you have a weapon?
Sweet price, wow. Did they give you a 22% interest rate or something?
Dealers make money on used cars, but not new ones. They also make money on service. Those areas are far more profitable.
Occasionally, a hot new model comes along and they get nice margins on those. But it's a buyer's market for cars, so we see more break-even deals than we do profitable ones (for them).
#1169 of 3509 Re: Holy cow [ateixeira]
Jun 29, 2006 (4:28 pm)
Thanks for your reply. I thought it was a deal that I should not pass up and you confirmed that I was right.
I paid cash for the Subaru and Acura and there was no trade.
#1170 of 3509 Re: Subaru Motors Finance/Chase Contract Questions [mb789]
Jun 30, 2006 (4:06 am)
This identical thing happened to my girlfriend and they said almost identically the same words just a couple of months ago.
What advantage is there to the dealer to do this? I think it is Chase... She is not happy with Chase at all. I personally have had no problem.
#1171 of 3509 Re: Bought 06 Forester 2.5X Manual [tracks66]
Jun 30, 2006 (4:11 am)
Wow, you did rob them.
I got a new base 2.5X 2004 for 18,000 K without the goodies and thought I got a good deal 18 months ago.
#1172 of 3509 Re: Bought 06 Forester 2.5X Manual [tracks66]
Jul 06, 2006 (2:06 pm)
Invoice on the vehicle is $21,077 (incl. destination), plus about $120 invoice for the mirror, and I'm not sure what Equipment group 1H is, but a similarly priced equipment pkg invoices for about $190, so figure $21,400 as the rough invoice cost. Minus the $2000 rebate puts it at $19,400, so the dealer dropped about $1100 additional dollars off, most or all of which would've come from a factory-to-dealer incentive. The incentive is better for the dealers than a higher rebate from Subaru, because the dealer still has the potential to capture some or all of that money based on the sale price they offer. The dealer isn't making much profit, but they won't be going hungry: they still make a few hundred dollars on a holdback from Subaru, and maybe they receive an extra incentive if they reach a certain volume of sales.
Subaru of America is under pressure to increase its sales volume, and is making room for soon-to-be incoming 2007s. It's a good time to buy a Subaru. You got a great deal.
#1173 of 3509 What do you think of this price?
Jul 10, 2006 (5:24 pm)
I got a price quote(verbal) of $22,666 for 06-X-Premium-Manual not including the $1000 subaru rebate.
So the pricing would look like this:
$22,666 + tax - $1000(subaru rebate) + $625.
Does this price sound reasonable?
Thanks in Advance,
#1174 of 3509 Re: What do you think of this price? [fxter]
Jul 10, 2006 (8:16 pm)
Invoice is $22,569 (without $625 destination). Are there any extras added, like all-weather mats, auto-dimming mirror, etc, that would add to the invoice price? If so, it sounds like a good deal. If you want to call around or haggle, you may be able to shave off another $1000-$1200 or so, which I believe is a factory-to-dealer incentive, but the price they offered is certainly fair. I think shooting for invoice (before the rebates are applied) is a good target, and anything beyond that is a bonus.
X Premium's a very nicely equipped vehicle, and the manual should be even more fun to drive. What color are ya goin' for?
#1175 of 3509 Re: What do you think of this price? [jeffmc]
Jul 10, 2006 (10:04 pm)
It includes all-weather-mats, bumper-cover(not sure whether it is one of those Popular eqpt group 1?). There is no auto-dimming mirror included.
Man, if I can shave off another $1000, that would make my day.
Looking to get a Aspen-White or RED ...
#1176 of 3509 Re: What do you think of this price? [fxter]
Jul 10, 2006 (10:43 pm)
So it sounds like they're offering straight invoice pricing before the rebate. Try contacting other local dealerships through the internet and tell them what you've been offered. Find your best offer and give your favorite dealership the chance to match it.
Some dealers are more willing to bend at the end of the month, but with the '07 Foresters now arriving, I think they'll want to move their inventory NOW.
If you happen to be in the Northwest, I like Carter Subaru in Seattle. Very no-nonsense through the internet. Folks here in the forums also say very good things about Fitzmall in Maryland (they also show locations in PA and FL). Check them out online, too.