Last post on May 15, 2013 at 9:38 AM
You are in the Subaru Legacy & Outback
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Subaru Outback, Wagon, SUV
#2588 of 3392 Re: Good Deal? [ridge8]
May 15, 2010 (4:28 pm)
Hi Ridge8. Glad to share.
Remember that the name of the game in the car business is volume. Dealers don't mind selling SOME vehicles with no profit as long as they don't lose money. Whether it is a VIP deal where they get reimbursed for their "trouble" or selling a vehicle that has not been floorplanned yet, such as an ordered vehicle, it helps get their volume up. This allows the dealer to get more support money and more vehicles to sell in the future. A General Manager friend of mine always told me he didn't mind selling to me at cost (ordered vehicles) because he would make it up on the "next guy", and mine were easy sales, tying up no one but me and him. He always said the volume was much more important to him because it gave him better status which allowed him to have a higher priority on getting stock to sell.
Salespeople live off the bonus checks, again based on volume. They might get "x" for 5 sales but they also might get "3x" for 10 sales, so it is non-linear. The joke on some of my deals was that the salesperson's payment for this particular car amounted to a ham sandwich. Even then they still appreciated getting one more sale for their monthly volume quota.
I am not sure that the salesperson actually gets a check from Subaru, especially in NE where it probably would be SoNE, but it is just semantics because the bonus money flows from the top and trickles down to the salesperson. Of course the dealership gets non-linear bonuses too. Again, it is all volume. Even Ernie makes more money and gets treated better with higher volume. Car manufacturing companies would be nothing without people moving their product, at all levels, so that is where the incentive is.
Ernie adds nothing to the situation, he gets in the way most of the time. No one would design a system like that today, but remember, 40 years ago or so the Japanese brands wanted to get a foothold over here, BADLY. The vehicles weren't all that popular and most weren't all that good. None were built in this country, all shipped over. Even Subarus of the 70's turned to swiss cheese before your eyes. I remember years ago when my wife needed a cheap car while she was going to school, and she bought an old and well-used Subaru GL wagon. It ran very well but it was a "Flintstone" car, no floor to speak of. It was only a "car" because of all the rust holding hands.
Subaru wanted to get into the US market but were having a hard time finding someone who would take a chance on them. Ernie stepped up, and for his trouble he got a lifetime exclusive contract for his enterprise, for all the NE area. It took a LOT of years before his gamble paid off, but his vision and risk-taking helped make him very wealthy today. Subaru couldn't get out of the deal even if they wanted to today. Him being in the way doesn't help you and me, but I applaud him for what he did when no one else wanted the deal.
The fact that some Subarus are now built here changes the business model but has no bearing on his exclusive contract. The contract today is not for Subaru's benefit, but it was "in the beginning".
#2589 of 3392 Wheel shake problem refuses to go away....
May 17, 2010 (2:58 pm)
I was about the pull the trigger when I became aware of the wheel shake problems at certain speeds, on many units.
SOA so far have been unable to identify and fix the problem consistently.
I am not going to go into detail, or the longevity of the problem, the forums documenting this issue are easy to find.
To their credit, SOA has been working hard, but it seems they don't know definitively what causes it. At least so far they have failed to make public any conclusions they may have. This has resulted in buybacks of un-fixable cars.
You should know that buybacks are a last resort and manufactures would rather walk through fire than do this.
Some owners have invoked the lemon law, SOA acknowledges the issue, but so far have failed to make a public statement or issue a TSB.
I would love to buy an OB, but as of today, this issue is unresolved and ongoing on the latest cars off the production line.
It's beyond unreasonable to expect a buyer to put down $30k when you know some products are leaving the factory with a defect.
Having to go through the anxiety, inconvenience and pain of multiple dealership visits with potentially no resolution, even after replacing most of the front end, is ridiculous.
Word is getting to the dealers now, however some are unaware or in denial.
SOA are being fairly transparent, but they need to come out and make a statement on this, and issue a TSB and a guaranteed remedy. Until then, put me down with the many others who can't buy.
#2590 of 3392 Outback 2.5i limited
May 31, 2010 (7:58 pm)
Just picked up the car today. 2.5i limited
MSRP - $29985. (moonroof)
Selling price - $ 27496
Doc. fee- $125 + $139 (license fee)
Tax (6.25%) - $458 (due to trade in)
Total drive out - $28218.
Dealer also added splash guards, and bumper guard at no extra charge.
Awesome experience at West Houston Subaru in Houston, Texas.
#2591 of 3392 Re: Outback 2.5i limited [carmaster1]
Jun 01, 2010 (12:48 pm)
Congrats. What color? Is that a CVT model?
#2592 of 3392 Re: Outback 2.5i limited [ateixeira]
Jun 03, 2010 (7:21 pm)
Yes, it is a CVT model. And the color is silver steel with black interior. Love the car so far.
#2593 of 3392 bought outback 2.5i limited pzev
Jun 06, 2010 (6:58 pm)
Bought a 2.5i limited without moonroof (dealership had to find one without the moonroof). Washington DC suburbs.
factory options were bumper cover, all weather mats, wheel locks, and popular package 1b (shock sensor and mirror w/homelink). Also had the media hub installed for $478; not great but works well enough.
with tax, title, media hub, etc, OTD was 28587.98. Happy with the car after one weekend with a lot of driving.
#2594 of 3392 Re: bought outback 2.5i limited pzev [greenjdc]
Jun 08, 2010 (10:43 am)
Out of curiosity, which dealership? I think there are 7 in the DC area.
#2595 of 3392 It is very hard to negociate price in Minneapolis area
Jun 08, 2010 (12:57 pm)
We have been looking at the 2010 outback H4 2.5i ltd with pwr moon for a couple of month. It looks like the Subaru dealers in minneapolis area never worry about selling their cars. We have talked to a couple of dealers and none of them agree to go with price under $29300. I have seen several people in this forum reported that they bought the car at invoice price or less(less than $28000). Does anybody know this is the area difference or there is other reason? How much should I target in this area? Thanks much.
#2596 of 3392 Re: It is very hard to negociate price in Minneapolis area [jjj15]
Jun 08, 2010 (2:22 pm)
It may be a regional thing.... you can check a couple websites, including Edmunds.com, to determine actual market value in your area.
You live in a perfect location though, being in Minneapolis. There is no place in the US that is very far from you. If you want to save some money, consider traveling a little. There are many places, including Washington, Colorado, and Pennsylvania/Maryland, where these vehicles can be obtained for invoice or below. You just have to be flexible and find someone who wants to sell you a car.
#2597 of 3392 Re: It is very hard to negociate price in Minneapolis area [jjj15]
Jun 08, 2010 (8:23 pm)
If you can wait 6 months you can get invoice - 2% from your local dealers ... Subaru VIP Partner Program ... Join "Leave No Trace" www.lnt.org to be a member $25 to $35 and wait 6 months ... what you need is ask for a letter and bring to your dealer and they will honor this discount ...
Eligibility for the Subaru VIP Partners Program after six months of being a member, helping you save as much as $3,300 when you purchase or lease a new Subaru, options included for this discount.