[numskull50]

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

 

[FozzyX3]

Subaru of America currently is offering subsidized financing for the Forester. Our dealer quoted us 1.9% for six years, which is only 0.01% points above the rate Bank of America quoted me.

That had to have started July 1st. The last offer (no Forester) ended June 30th. Thanks for the update!

 

[RebDovid]

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.

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

 

[zachavm]

That had to have started July 1st. The last offer (no Forester) ended June 30th. Thanks for the update!

1.9% is 60 and 72 month loan. You can still get 0% on a 36 month and 0.9% on a 48 month.

 

[Irrivirsible]

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.

 

[zachavm]

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.

 

[MtnLife]

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)

 

[gsdude]

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.

 

[Kean]

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.

Not really. Depends on the situation as others stated but also relies heavily on an individuals wants / needs.

Personally, I rarely do unless it's a spare car, project, etc. We tend to keep our vehicles 10+ years and I simply prefer buying something I know is new without questioning it's history, etc. I don't want the potential of inheriting someone else's problems.

My take is if I'm going to spend close to what I would pay for a new car on a 2 year old car, I'll just buy new as I just don't see that kind of savings really worth it to be honest. ....especially now.

Also, a car like the Forester has always been a great value for us ('08 and '20). Hell, I didn't pay much more for my wife's 2020 Premium with two option packages than what @FozzieBalou paid for his new 6 years ago. We got a lot for our money and I don't feel her 2020 was a bad deal at all. ....especially with the 0% financing offer we got.

....and as others said, used cars have been at a premium lately. In fact, used car prices have been on the rise for a while but the spike in the last few months has been incredible.

 

[RebDovid]

If the dealer won't give you at least as good a price for paying cash, then it's likely their private financing is more expensive than Subaru financing. Also, depending on your credit, you may be able to be a cash buyer vis-a-vis the dealership by getting a loan elsewhere. For my daughter's prospective purchase, I can get 1.89% for 72 months from Bank of America (Subaru is 1.9%).

Personally, too, I would stay away from dealerships whose offers lack transparency. Here in Massachusetts, Ira Subaru's website offered "Ira's Best Price" for virtually the same Premium at $3,498 below msrp. With some difficulty and delay--webchatting and then email--they finally disclosed that Ira's Best Price included a $3,498 allowance for a trade-in. Not cool at all.

My longtime dealership/salesperson quoted us msrp independently of and before seeing my daughter's Honda Fit. His offer for her Fit was, he freely explained below her offer from CarMax. She accepted it because she can't be without a car for the approximately two weeks between the expiration of her current offer and the anticipated delivery of the Forester, and because, after considering the tax advantage on trading-in, the net difference was quite reasonable. But if the timing were different or the dollar difference larger, she could have foregone the trade-in without affecting the price of the Forester.

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.

 

[zachavm]

after considering the tax advantage on trading-in, the net difference was quite reasonable

I'm sorry what? Are you saying the price against which the tax was calculated was reduced by the value of your trade in? Is this a state specific thing? I've never heard of this.

 

[OriginalTwoTone]

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

 

[Kean]

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.

 

[sneefy]

I'm sorry what? Are you saying the price against which the tax was calculated was reduced by the value of your trade in? Is this a state specific thing? I've never heard of this.

You pay sales tax on the net purchase price. At least that's how it works around here. Whether that varies by state, I guess I'm not sure? If a state taxes you on full value of the vehicle before trade, that state needs better legislators.

As stated above:
$40k car...
$10k trade...
... you pay state sales tax on $30k.
In a sane state that's how it works, anyway. Also, you're taxed at your state of residence rate. So buying a car in a state with lower sales tax doesn't work.

 

[sneefy]

People are paying 3k ADM on Kias.

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

 

[Kean]

You pay sales tax on the net purchase price. At least that's how it works around here. Whether that varies by state, I guess I'm not sure? If a state taxes you on full value of the vehicle before trade, that state needs better legislators.

Here in California, that's exactly how it works. .....the latter part. We don't get credit for the trade in against the sale price of the new car. In the above scenario, you would pay tax on the $40k, not $30k.

Welcome to one of the highest taxed states in the nation.

 

[sneefy]

Here in California, that's exactly how it works. .....the latter part. We don't get credit for the trade in against the sale price of the new car. In the above scenario, you would pay tax on the $40k, not $30k.

That sucks.

Welcome to one of the highest taxed states in the nation.

Thanks, but no thanks, lol.

 

[vtdog]

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.

 

[zachavm]

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.

 

[DragonSubie7]

@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.