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Subaru Outback Prices Paid and Buying Experience

2223 messages,  Last post on Nov 28, 2009 at 9:01 PM

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



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#1538 of 2223
Re: Yes, it's registered! [sandman1318] by ateixeira
Dec 20, 2007 (12:03 pm)
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Replying to: sandman1318 (Dec 19, 2007 11:46 am)

Must be a dealer-specific warranty, probably not worth the paper it's printed on.
 
Frankly, I'd forget about it. It probably comes will all sort of strings attached, like having to do all the maintenance at that dealer.
 
What they really want is your service dollars. They don't make money on new car sales, so they make it on service instead. Enough that's it worth trying to secure your business by offering this "warranty".
#1539 of 2223
It's for real and I paid for it... by sandman1318
Dec 20, 2007 (2:46 pm)
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I've been corresponding with Subaru and I did indeed pay for this Added Security agreement from. It is NOT a dealer thing and is from Subaru. They faxed me a copy of the application that I supposedly filled out and it's been added to my financing. (This was done AFTER the paperwork was completed and AFTER I left the dealership. All I can say, is the "you know what" is going to hit the fan, REALLY BIG, very soon!
#1540 of 2223
Re: It's for real and I paid for it... [sandman1318] by dules
Dec 21, 2007 (7:42 am)
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Replying to: sandman1318 (Dec 20, 2007 2:46 pm)

If they faxed you a copy of the paper you filled out - did you fill it out? If you did, then you did, and that's your mistake (sorry). If you didn't, then it's fraud, and yes, that is a bigger problem.
 
Good luck!
#1541 of 2223
Re: It's for real and I paid for it... [dules] by sandman1318
Dec 21, 2007 (8:51 am)
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Replying to: dules (Dec 21, 2007 7:42 am)

Nope, I NEVER filled out ANY application for ANY "extras."
#1542 of 2223
2.5i auto in WI by rickyriver
Dec 21, 2007 (9:36 am)
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I am in WI, and was looking for 2.5i outback auto. Up front, I was offered invoice - $250 (half of the holdback as they told us) - $1500 rebate + $99 service fee + tax + title + 0% APR for 2 years (if qualified). The car we were interested was about $24000 (invoice), so the before tax and fees price was about $22250.
 
After some haggling and told them we were buying today, they agreed to give us all of the hold back which was $498, and that brought the price down to about $22000 before tax and fees. We offered back $21500, and they rejected. We tried to walk out of the door, expecting they would stop us, but they let us go. So the deal did not go through. I guess $500 below invoice is pretty close to their bottom line (that is before the rebate, tax and fees).
 
Now I am not sure if I want to go back. If so, they will probably hold very tight onto the $22000.
#1543 of 2223
Re: 2.5i auto in WI [rickyriver] by sandman1318
Dec 21, 2007 (10:02 am)
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Replying to: rickyriver (Dec 21, 2007 9:36 am)

rickydriver: You're one heck of a negotiator!! That's the way to do it, if you have that kind of patience. If they let you walk, that means they couldn't go any lower and still make a worthwhile profit. I would go back and offer them the $22,000, assuming it's within your budget.
#1544 of 2223
Re: 2.5i auto in WI [rickyriver] by xwesx
Dec 21, 2007 (10:57 am)
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Replying to: rickyriver (Dec 21, 2007 9:36 am)

Does the car have any accessories on it? MSRP on this car, including destination, is $25240. Invoice is $23745. Less the $1500 rebate to $22245. Hold-back of 498 drops the price to $21747.
 
$21,500 is dirt cheap; if they can sell it to you for that and not at a loss, they would likely need to be a volume dealership that receives additional incentives from Subaru.
 
I am all for tough negotiations - I do it too. But, if you want those negotiations to be fruitful, you have to go into it with the understanding that you want a good car at a great price, but you have to work within the constraints of the product to get there.
 
One way to get an additional discount on the car is to use Subaru Bucks from a Subaru Chase Mastercard, if you have them.
#1545 of 2223
Re: 2.5i auto in WI [xwesx] by rickyriver
Dec 21, 2007 (11:55 am)
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Replying to: xwesx (Dec 21, 2007 10:57 am)

The 2.5i has the popular accessories that almost every outback has: the arm extension, auto-dim mirror with compass, and rear cargo net. I think the MSRP is about $25637. It was silver.
 
The fishy things were: 1. the $99 services fee which they told me every car dealership charge it and they charge the least. But I have never heard off it at the other dealerships. 2. I saw somewhere on the web that subaru holdback is 3% of the MSRP which is about $750 to $800. If that's true, they are keeping $250 to $300 of the holdback after giving me the $498.
 
So I thought there was still some space to get the price down. When I offered $21500, you know I was ready to pay $21750 or more. They should know that too. I was expecting them to at least stop us from walking out and give me a chance to raise my offer. Even for $21900 I would have probably taken it. Unfortunately, they let us go. Maybe I gave them a strong buy signal that they were confident I will come back. Or maybe they really have no room to get the price down. Usually, the dealer will give me a call a day or two later trying to get me back to the negotiation. However, I realized that I did not even give them my number.
 
Before I walked in, $22000 was my prefect price, and ready to pay between $22000 to $22500. So I did tell the salesman my budget was $22000 when he asked me very soon after we walked into the dealership. The probably had sent them a strong signal of my bottom line. Then I spent more than an hour to check out and test drive the car. Then I was offered $22250. I was pleasantly surprised, but at the same time became very doubtful about my $22000 target price. Another pleasant surprise was they offered 0% for 2.5i. The last time I checked, it was 2.9%. But from $22250 to $22000, the price is only down $250. It did not look like much of a good negotiation. My wife, who had done no research and judged only from the $250 difference, had a strong feeling that $22000 would be way overpaid. So I was actually pressured by my wife to offer $21500. She wanted me to offer $21000, but I had no way to speak it out to the salesman who had been very nice to us and looked honest.
 
We are expecting our first baby at the end of February. So we want a safe car in the snowy Wisconsin, for my wife and the baby. She drives 45 minutes one way to work every day, so we like the outback over SUV because it has better MPG. But the second row space in outback is just not big. My in-laws will come when we have the baby for at least a month, and they don't drive. I just don't see there is a way to fit the car seat and two adults in the second row. I am not very sure if outback is a good fit for us.
#1546 of 2223
Re: It's for real and I paid for it... [sandman1318] by rishiprasad
Dec 21, 2007 (12:45 pm)
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Replying to: sandman1318 (Dec 21, 2007 8:51 am)

I can tell you what happened. You probably agreed to a monthly payment price. You might have also agreed to a purchase price for the car. Lets say you agree to purchase car for 20,000. Then lets say the dealer says that comes to 420 per month and you say OK. Dealer has to disclose interest rate by law. I have not done the math but lets say that is 8%. Dealer knows you might freak if you hear 8%. So instead dealer throws warranty into purchase for $500. They pocket $300 of that profit and then the interest rate becomes 6.9% which sounds OK to you.
#1547 of 2223
Re: 2.5i auto in WI [rickyriver] by xwesx
Dec 21, 2007 (1:08 pm)
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Replying to: rickyriver (Dec 21, 2007 11:55 am)

You probably would not damage your credibility if you contact them again within a day or two to find out if they had reconsidered at all on their price. I am not sure of the terms offered on the financing, but "0%" will result in significant savings for you as well, depending on whether or not you would finance it regardless. Even at $22K, you are getting a good deal on the car - not saying you should not hold out for better though if you can get it!
 
More importantly is that you are not entirely sold on the car at this point. Yes, the car will be a tight fit for 5 adults and an infant. You would all fit, but not comfortably, so the trips would need to be of relatively short duration. At only 1 month, though, that part is not all that important. With only one child, the Outback works well. We had an older Outback before and after our first child and it was a very comfortable car. After the second one, however, the car is full with 4 of us. There is no opportunity to take along a friend or family member of any size.
 
Fate intervened and destroyed our car, so we ended up with a minivan. The van is in a whole different league when it comes to family comfort, even if the driving experience is extremely mundane.
 
If it is about safety and durability in a car comfortable for commuting long distances, though, the Outback should fit the bill. Take a look at my carspace page, there are a couple shots of an '08 Outback fully loaded. After 5500 miles in three weeks with a 3-year-old and a 3-week-old, I still found it comfortable.

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