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Subaru Forester Prices Paid and Buying Experience

3539 messages,  Last post on Jun 17, 2013 at 8:29 PM

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What is this discussion about? Subaru Forester, Wagon, SUV

Messages Page 171 of 355

#1698 of 3539 What is the difference between "customer cash" and "cash back" promos? by dcdame

Jan 08, 2008 (8:14 am)

Can someone please explain the difference (in meaning) between alternative current Subaru promos?
 
Subaru currently offers alternative promotions for Forester buyers - choose (1) "cash back" plus APR incentive or (2) "customer cash" - what's the difference? The "cash back" and "customer cash" amounts offered are the same. Is one for people who finance w/the dealer and one for those who don't or what? If the former, why not just say "cash back" on all sales, plus APR incentive for those who finance w/dealer, rather than using two terms to describe identical cash offers? I don't get it.
 
I'm considering trading my 2005 Turbo Baja for a new Forester (will wait '09 models are released to see what deals are offered on '08s, plus I might like the '09s more, even though I'll pay more), but I don't understand the terminology used in the SOA promotions.
 
http://www.subaru.com/tools/financialsolutions/special_offers_results.jsp

#1699 of 3539 Re: What is the difference between "customer cash" and "cash back" promos? [dcdame] by ateixeira

Jan 08, 2008 (11:18 am)

Replying to: dcdame (Jan 08, 2008 8:14 am)
Sounds like no difference to me.
 
What differs is factory-to-dealer incentives.
 
Here in MD, that's actually better than cash back. The dealer can lower the price, so as a customer you don't pay sales tax on the rebate amount. If you get cash back in MD, you do pay tax.
 
That's an extra $50 in MD for every $1000 worth of rebates.

#1700 of 3539 Re: What is the difference between "customer cash" and "cash back" promos? by dcdame

Jan 08, 2008 (3:18 pm)

Replying to: ateixeira (Jan 08, 2008 11:18 am)
Actually, that savings would be $60 now, thanks to the recent bump in the MD sales tax rate - 6% now - so even better. I'd be interested in negotiating on that basis, rather than customer cash/cash rebates, but how do I discover what factory-to-dealer incentives are in place at any point in time? I know, I know -- I should try Google before asking here (I tried a net search on my first question and got nowhere, but my current question sounds like I might get lucky w/a search). Still, if any of y'all have any suggestions/insights beyond Google (or the like), I'm all ears.

#1701 of 3539 Re: What is the difference between "customer cash" and "cash back" promos? by jeffmc

Jan 08, 2008 (3:46 pm)

Replying to: dcdame (Jan 08, 2008 3:18 pm)
One way to get a ballpark estimate is to check the prices online at Fitzmall to see how far below invoice they're offering. Add the rebates back in, see what the difference is between that price and invoice, and you've found the factory-to-dealer incentives. Their prices are almost always about as low as you can go, so it gives you a pretty good idea, although it's certainly not exact or scientific.

#1702 of 3539 Re: What is the difference between "customer cash" and "cash back" promos? [dcdame] by ateixeira

Jan 09, 2008 (8:45 am)

Replying to: dcdame (Jan 08, 2008 3:18 pm)
6%? Really? I had not even heard about that!

#1703 of 3539 Re: What is the difference between "customer cash" and "cash back" promos? by dcdame

Jan 09, 2008 (11:57 am)

Replying to: ateixeira (Jan 09, 2008 8:45 am)
What I found appalling was the way car dealers, during the end of the year, advertised heavily about the tax increase ("20% sales tax increase after 1/2/08!"), yet failed to let customers know that on the same day the new 6% rate went into effect, a new law would also be going into effect changing the way the tax on a car sale is assessed.
 
Before the increase, the 5% tax was assessed on the new vehicle purchase price, but now the tax is assessed, at 6%, on the difference between the sale price and the trade. So, if you bought a $20K car on 1/1/08 and had a $12K trade, you'd have paid 5% tax on $20K - i.e., $1000. If you waited two days and bought a $20K car with a $12K trade, you'd pay 6% tax on $8K, i.e., $480 - so you'd pay $520 less if you waited to buy. MD dealers publicized the taxes based on the assumption of no trade (i.e., "buy now before the 20% tax increase goes into effect!") to get people into their showrooms, even though many (most?) people trade a vehicle -- they didn't mention the potential tax benefit of waiting. Cash buyers and anyone having a trade worth less than 16.67% (1/6) of the purchase price would have been better off by buying before the increase (all other figures being equal) - everyone else would be have been worse off buying earlier.
 
I'm not thrilled the sales tax rate went up (still, it is the first increase since 1977, so I'm not surprised), but the change on the assessment method does remove one of the reasons I had considered keeping my car longer (i.e., not getting any credit for the tax I'd already paid on 2005 the purchase for the Baja). I'd still be smart (finances-wises) to keep the Baja for a few more years -- it's a great vehicle in general, except I'm tired of raising the heavy cover over the bed. Of course, even if I decide to trade the Baja, I've still got to make up my mind on what to get - a Forester or an Outback. Decisions, decisions!

#1704 of 3539 Re: What is the difference between "customer cash" and "cash back" promos? [dcdame] by p0926

Jan 09, 2008 (12:28 pm)

Replying to: dcdame (Jan 09, 2008 11:57 am)
Hey just be happy that your sales tax is ONLY 6%! We're stuck with a 9% sales tax and I think parts of CA are even higher!
 
-Frank

#1705 of 3539 Re: What is the difference between "customer cash" and "cash back" promos? [p0926] by erics6

Jan 09, 2008 (1:34 pm)

Replying to: p0926 (Jan 09, 2008 12:28 pm)
What's a sales tax?
 
-Oregon resident.

#1706 of 3539 Re: What is the difference between "customer cash" and "cash back" promos? by tifighter

Jan 09, 2008 (1:58 pm)

Replying to: erics6 (Jan 09, 2008 1:34 pm)

 
What is this state income tax thingy I hear about?
 
-Washington Neighbor

#1707 of 3539 Re: What is the difference between "customer cash" and "cash back" promos? [tifighter] by erics6

Jan 09, 2008 (2:15 pm)

Replying to: tifighter (Jan 09, 2008 1:58 pm)
Only 9% ) minus the kicker refund. (The Oregon Constitution requires that, when there is at least a 2 percent difference between the final revenue forecast for the biennium and the actual end of the biennium revenue, the surplus be returned to individual income taxpayers.)
 
Then there's that darn property tax thingy too.
 
Sure see a lot of Washington plates at the I-205 Costco in Portland though.

Messages Page 171 of 355

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