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Prices Paid: Buying & Leasing Experiences Subaru Forester Prices Paid and Buying Experience
2755 messages, Last post on Dec 01, 2009 at 5:41 PM
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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
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Replying to: dcdame (Jan 08, 2008 7:14 am) 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.
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Replying to: ateixeira (Jan 08, 2008 10:18 am)
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Replying to: dcdame (Jan 08, 2008 2:18 pm) 
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Replying to: dcdame (Jan 08, 2008 2:18 pm) 
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Replying to: ateixeira (Jan 09, 2008 7:45 am) 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!
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Replying to: dcdame (Jan 09, 2008 10:57 am) -Frank
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Replying to: p0926 (Jan 09, 2008 11:28 am) -Oregon resident.
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Replying to: erics6 (Jan 09, 2008 12:34 pm)  What is this state income tax thingy I hear about? -Washington Neighbor
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Replying to: tifighter (Jan 09, 2008 12:58 pm)  ) 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.
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