Right now? MSRP is a good deal for the most part.

Why?

Because there are not a lot of Foresters on the ground right now, there won't be a lot of "new" 2021 models in the pipeline as they should be making the changes at the factory for the 2022 models, and there is that world-wide chip issue and other supply chain problems currently.

As with any car buying purchase, you can probably make a deal and get a better price. But a lot will depend on the stock in your area and the local demand.

 

Well, let me ask you this......

If you want to pay less, why don't you shop around? ......I'll wager the answer to your question lies within that response.

We payed a couple thousand less than MSRP a year ago for a 2020 but I wouldn't expect we could get a 2021 for that right now with the chip shortages, dwindling supplies, etc.

 

I understand that these are unusual times. In the past, we've always bought Subarus from this dealership at well below msrp. In fact, we start at invoice. For this reason, and having checked TrueCar in advance, I thought they were offering us a very good deal, considering the market.

My only reason for asking here is that I see some members reporting substantial discounts below msrp.

 

We purchased a 2021 Forester in Toronto, Canada last month (mid June) and we did not pay MRSP, however colour options where limited unless we wanted to wait. I did see the incentives on the Forester go from $750 off in June to $1000 off in July, which irritated me a little

Where we saw lack of wiggle room was with used 2019s, dealers weren't interested in dealing at all.

 

We purchased a 2021 Forester in Toronto, Canada last month (mid June) and we did not pay MRSP, however colour options where limited unless we wanted to wait. I did see the incentives on the Forester go from $750 off in June to $1000 off in July, which irritated me a little

Subaru Canada really does operate a little differently. Subaru of America seemingly prides itself on never doing "cash on the hood". Instead we periodically get low interest financing offers. Last one they had didn't include the Forester.

 

You think it's bad trying to buy a new one, you should see what has happened to the prices of used Foresters. Last February we bought our 2017 Premium (w/Eyesight) with a little under 53K for right at $20K. One local owner, dealer-only service records and immaculately kept. It was their list price which we thought was fair considering its history.

Fast forward to July. The dealership we buy from currently has '17 and '18 Premiums with 80 and even 90K on the clock and listing them for $23-24K. At least one of them didn't have Eyesight and none of them had the extra accessories (auto-dim mirrors, Homelink, seatback protector etc) that ours has.

 

If you have Costco in your area, their auto buying program is phenomenal; we bought our last three vehicles (2 Subarus!) through it.

 

I too have been shopping and I have multiple dealers around me some with in stock and others "in-transit". The only dealer that has the Costco program has ZERO Foresters in stock. Go figure. None of the dealers around me want to sell me at MSRP price so the heck with it. I've settled on waiting until the end of the year (or next year) when things calm down.

 

On the other side, if you are trading in, trade prices are up but are starting to drop.

 

All depends on how hot or short supply or over supplied the car is and how much you want it.. id never pay a premium on a car(aka OVER market value) id get a different car instead..but MSRP is where i would pay that MAX...i look to pay someplace between invoice and MSRP... no markups counted

 

In general, I agree. Over the past twelve years we've bought or leased a number of Subarus from the same dealer, all with subsidized financing, and all priced based on invoice. We currently own a 2010 Outback, which I drive; a 2019 Outback, my wife's; and a 2012 Legacy, which another child drives.

Indeed, it's our longstanding relationship with the dealership and one particular salesperson, now a manager, that, reinforced by the TrueCar report, led me to think that, in this market, msrp is a great price. It's only reports here of people paying well below invoice that prompted my inquiry.

 

At the end of the day, buying a new car is a bad deal. So much depreciation the first few years, you’ll never make up the difference in potential repair costs if a 2-3 year old car.

 

That really all depends on how long you're planning on keeping the car... For example, my 2014 Forester is still holding a value of between $14K and $16K - and has been holding that for a few years now. I paid about 27K new - so I've "lost" about 50%.

 

Purchased a 21 Forester Sport in April for 8% off MSRP, a lifetime powetrain warranty ala oem, gratis body side molding, all weather floor mats, dealer invoice pricing on several other options, four year zero percent financing with nothing down and a good deal on extended warranties. We shopped online with four different dealers. Guess we caught them at the right time. It was the most pleasant car purchase transaction we have ever experienced the last 50 years of car purchasing.

 

I just bought mine 21' Forester premium over two week agos, i'm in Fairfax, Virginia. Not happy with the price much - 30K OTD, Forester inventory is tough right now and everyone selling their over MSRP 1k or so. If you are really need a car, then just have to find the lowest price, bite your tounge and go with it. But you have time and not in the rush of getting a car, then wait, but keep in mind, with the chip shortest situation, the more you wait, the more you pay.
Another thing, We decided to get grand new car with 3 miles on it when we picked it up. Used cars price are not pretty either, some might cost more then you get a grand new car.

 

FYI, here is an example from a quick search on Carmax showing Forester Sport trims. It is down right embarrassing. Even for the 2019's, these prices are pushing if not over MSRP. If you can get a dealer to honor VIP pricing (Invoice minus 2%) it will DESTROY these prices. Hell, look at that 2021 at the top. MSRP on a brand new touring is less than that. Also note this is Carmax that doesn't haggle so the price you see is the price you pay (before tag title and tax). What moron is paying these prices?

 

not only subarus but some used cars are selling over more than the new MSRP right now. its a terrible time to buy a car.

16 cars now cost more to buy used than new

Car buyers are paying 8.1% more for a used Kia Telluride than the SUV's new sticker price. A used Mercedes G-class goes for $7,447 more than a new model.

www.autoblog.com

 

Yes and no, depending on why one wants to buy a car. In our child's case, having driven a Honda Fit for five years, there's a need for a larger car to accommodate two children, ages three and six, together with their gear and friends, e.g., another child and adult on a day trip.

The Fit having been outgrown, but still having a strong re-sale value that's likely to decline substantially as we continue to emerge from the pandemic, this seems like a reasonable to good time to replace it. A new car appeals because our child expects to drive it for 10+ years.

 

I am considering 3 dealers right now. Two are offering $500.00 off MSRP, one requiring you finance through one of their banks, not Subaru financing. The other one is claiming a trade allowance over and above trade value. I am waiting for specifics. Sounds like a tactic to get you into the dealership. They are showing sizeable discounts but it includes part of the trade amount too so until they give me a breakdown, I am not sure what to think other than there must be a catch for those prices. I will pay MSRP if I have to but on the other side they will have to give me the high value for my trade in if I do.

 

Trade in incentives are practically impossible to verify. I wouldn't put much stock in it. I would probably suggest asking for a price if you don't have a trade in.

 

If you need a car now, think the price is fair, and trust the dealer then go for it! Don't create more issues for yourself. We HAD to buy a car right now (since our other car met an unfortunate end). We 'reserved' a '21 Forester but kept looking. We found a '20 at a price we thought was fair compared to what we were seeing all over the country. Bonus was it came in a color we really liked and the new one we put our names on didn't! The '20 had higher miles then we would have preferred but was still under warranty. BUT we could drive it home instead of waiting 3-5 weeks for it to arrive in the US. Buying a car is always a trade-off in what you want vs what you want to pay. If your daughter needs the car now, the monthly price is something she is comfortable with, then MSRP is a FAIR price. (especially in light of the current new car shortage due to the chip issue)

 

I'm waiting on a Bronco, in taking to my dealer this time last year they had 110 cars on the lot, right now I think he said 10.

Someone posted a Window sticker of Toyota Taco with 20K ADM on it.

People are paying 3k ADM on Kias.
So I'd say in current times, MRSP is a good deal

 

People are paying 3k ADM on Kias.

That's just nuts. Glad I bought last year.

 

Some states allow a tax credit of sorts for your trade-in when buying a new car. It applies to the new car price so if that new vehicle is $40k and your trade-in is $10k, the price of the new car purchase you're going to be taxed for is $30k.

Alternatively, you would taxed $40k for your new car purchase and then taxed for the $10k you make on the private sale of your old car. .....looking at it simplistically but we all know it isn't necessarily that simple as private party prices can usually fetch more, etc. You'd have to do the math in your own scenario based on your own tax laws, what you're being offered for trade-in vs. private sale, etc.

Even if it were just a wash or I take a bit of a hit, I prefer trading in to avoid the hassle.

 

l recently had my '19 Forester at the dealer where I bought it for warranty work. While there I noted that there were no new cars in the showroom, nor did I see any in the lot. I spoke with the salesman who sold me my car. He said that the best deal he can make is MSRP. There is no discount at present. They are having trouble getting new cars and he said that it takes 8-12 weeks for an ordered vehicle to arrive. I bought my car new at a big discount from MSRP, but that was then and this is now. Personally, I would wait 6 months or so for things to sort themselves out before making a new purchase unless I was "desperate" for a new car, but that is just me.

 

I will buy when someone accepts my VIP pricing (invoice minus 2%). No sooner. I'll happily order it and wait, but I'm not paying these insane prices. I don't blame the dealerships for any of it. Even if they are charging 10% over MSRP they are likely still losing money due to the inventory storage. I however am happy to wait until it is over.

 

@zachavm
You could have a long wait.
If what you want is an in demand vehicle, that wait could be very long.
Discounts only happen when the seller needs to move inventory.
They have the opposite problem now, as they can't get cars in the first place, and that doesn't seem like it's going to change anytime soon.

@RebDovid - So how good or bad is paying msrp?
If it's the only deal you can get and you need a car, then that's the best you can do, so it's good.
If you can wait, maybe prices will come down.
OTOH - Maybe if the current inflation gets even worse, prices that look high now will be a bargain in comparison.
Who knows. The world has changed, and not so much for the better.

Maybe you can find what you want elsewhere..
In an area where AWD isn't really needed, Subies are sometimes cheaper than in a market where you really need AWD.
I'd suggest you take a look at TrueCar.com - They will show you what prices are actually being paid for a car you are interested in by location.
That should give you a better assessment of the deal you were offered.

 

I'm taken aback by all the stories of dealers charging MSRP (or more) for a new Subie right now. The dealer I just purchased my new Forester from charged me 4% over Invoice price. After doing the math, that's 7.7% off the MSRP. I had to order the vehicle and wait for it, but it only took 5 weeks (they quoted me 6-8 weeks). I'm very pleased with my buying experience there.

 

You're profile says your in Indiana. Maybe market conditions are different. But it's stories like yours that prompted me to ask my original question.

 

@DragonSubie7
Maybe. Like I said I've got no problem (and probably prefer) ordering which means it won't eat into their allotted inventory (I think). If that is the case, it would be a free sale that should only serve to increase their sales numbers and therefor their incentive money. I've already heard of at least one dealer that will sell at VIP pricing, but what they determine that is can sometimes vary. When they start accepting 2022 Forester orders I'll start asking around.

 

@FozzyX3 they do 0.5% on a 2 year lease, didn't really look at financing. Considered the whole "go financing and pay it off first month" bit, but I was in a bit of a rush to get a new vehicle so went the easy (for me) route.

 

A few points -

• Sales tax - in California, you pay sales tax on the final sales price of the car, regardless of trade in. Other states MAY require the dealer to pay sales tax on your vehicle (that you're trading) or it may be considered a tax exempt sale because it will be resold.
• Order vs Inventory - some of the vehicles you "special order" are not being ordered the way most cars are ordered - or at least USED to be ordered. When ordering a car, the order would be placed for your choices and RPO or SPO (regular or special production options). Then it would be scheduled into the factory's run and X-weeks from now, your car would be produced, shipped and received by the dealer and you'd pick up. Now, in some cases, you place and order for a vehicle and the factory (or in the case of Subaru, the import/port facility) will find the basic model and color and add the accessory options you chose. I'm mostly sure that this is how Subaru does it. As SOA orders so many Foresters in this color, that color and this other one, in the trim ranges that they offer, and as SOA offers most options as "dealer installed accessories" (take a look at the build & price tool on the Subaru website - you'll find many of the optional items are able to be installed any time, any place). So those all-season mats, the rear bumper cover, the splash guards, etc.. Outside of the packaged items, it's all done after manufacture and either at the shipment (out) or shipment (in) facility.
• Sales prices - new or used... we're in a relatively unprecedented time right now, with worldwide shortages of computer chips that support so many systems, supply chain issues for other items and an increased demand for many items. Then this is also the time (normally) when the new models for the next year usually start hitting the lots... not so many 2022 models yet, eh? With limited supplies, a dealer can charge whatever they want and whatever the market will bear... Remember all those tales of people paying thousands of dollars over MSRP (even up to over 10-grand!) for Mazda Miata, Chrysler PT Cruiser and other "hot" cars? Well at this point, ALL cars are hot as there is far less dealer inventory than there would have been just 2 years ago - prior to COVID. Even this time last year, there were more units on the lots than there are now. Even if you're not looking to buy a card, take a drive past your local auto dealer row or center - look how sparse those lots seem.

 

A few points -

• Sales tax - in California, you pay sales tax on the final sales price of the car, regardless of trade in. Other states MAY require the dealer to pay sales tax on your vehicle (that you're trading) or it may be considered a tax exempt sale because it will be resold.

You're right. In CA you're taxed on the final negotiated price of the new car regardless of trade-in as mentioned, but most others states will only tax you on the net price of the car after the trade-in. ....a trade-in tax credit. CA is one among a few that don't do this.

 

It's most likely because of our state's resale licensing and sales tax laws. If you buy an item for the purpose of resale, you do not have to pay sales taxes, as it is the responsibility of the "retail" purchaser to pay sales tax. So when you trade your car in, the dealer is buying it from you for the explicit reason of reselling the car (either to another consumer or to some wholesaler/dealer to sell on down the line).

That's one of the reasons some will have to pay sales tax on an out-of-state vehicle when registering in California, unless they can show that sales tax was collected on the purchase in another jurisdiction. People always used to buy motorhomes in Oregon, for example, because Oregon had no state sales tax (still doesn't?) and they'd bring them home and register them (in California) and the state missed out on that 6 or 7 or 8 or ___ percent tax on that big purchase.

In some cases, you may even have to pay higher sales tax when purchasing major items if your home location (city or county) has a different sales tax rate from the location dealership you buy the car from.

 

Just purchased a 2021 Subaru Outback premium, list $31 k with $1400 off of list with no trade involved. It was the only one they had in stock. With the 22s now coming in it is a leftover...

 

A person who's screen name is Crosstrek1994 talking about buying and Outback while posting on a Forester Forum. If this guy isn't a person after my own heart I don't know who is.