How to Buy a New Subaru at 2% Below Dealer Invoice Without Haggling

Hey guys,

Has anyone tried the VIP program recently? I am a member of LNT, and then realized that they pulled the VIP program page off the site. So I clicked through some of the other links provided on the first post in this thread, and it seems most -- if not all -- the links are gone for the VIP program.

So, is it still in effect? Has anyone used it in the last month or two to purchase their Subie with the VIP program?

Thanks!

Just go to the dealer, ask for the internet guy. Tell them you want a new Legacy for $1500 below invoice. They will do that deal all day long.

I got mine for $1900 below.

This around 7% below invoice.

But, it doesn't matter because you're gonna spend a boat load of $$$ on mods.

Just go to the dealer, ask for the internet guy. Tell them you want a new Legacy for $1500 below invoice. They will do that deal all day long.

 

I got mine for $1900 below.

 

This around 7% below invoice.

 

But, it doesn't matter because you're gonna spend a boat load of $$$ on mods.

I wonder it it's that's possible for the new 2015 just hit the dealer? I might loose some disadvantage in that vs a 2014 been out a while and struggling to get good sales.

ASPCA still gets 2% below invoice

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Just go to the dealer, ask for the internet guy. Tell them you want a new Legacy for $1500 below invoice. They will do that deal all day long.

 

I got mine for $1900 below.

 

This around 7% below invoice.

 

But, it doesn't matter because you're gonna spend a boat load of $$$ on mods.

Who is the "internet guy"? And why would they sell it for so cheap?

Who is the "internet guy"? And why would they sell it for so cheap?

The guy that does all the internet advertising.

Around here, at that time, I had my pick of anything for ~$1500 below invoice.

My 2013 2.5i 6mt was $1500 below...which works out to maybe 8% below invoice.

My 2013 3.6R was $1900 below...which works out to maybe 6.5% below invoice.

How do you know the invoice? Why would dealer agree to sell it below what they paid for the car?

Not sure if it will work with my dealer..

The guy that does all the internet advertising.

 

Around here, at that time, I had my pick of anything for ~$1500 below invoice.

 

My 2013 2.5i 6mt was $1500 below...which works out to maybe 8% below invoice.

 

My 2013 3.6R was $1900 below...which works out to maybe 6.5% below invoice.

How do you know the invoice? Why would dealer agree to sell it below what they paid for the car?

Not sure if it will work with my dealer..

I guess they are making it back from the sales interests?

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They get it from volume. The more they sell the cheaper the unit price from Subaru.

Subaru says $X is the invoice price. Now if you move ### in one month, you can have them for $Y.

Volume discount makes sense.

How do you know what the invoice price is? The sticker only lists MSRP.

Do you trust the dealer to tell you what the invoice price is or do you use some other resource?

They get it from volume. The more they sell the cheaper the unit price from Subaru.

 

Subaru says $X is the invoice price. Now if you move ### in one month, you can have them for $Y.

FLlegacy said:

IMO [dealer invoice] is probably an arbitrary value they use to make you feel like you got a good deal. No matter what anyone tries to say they wont sell a car at no profit to them.

Dealer invoice is a real, fixed amount (different for each vehicle) that does not reflect various after-the-sale "kickbacks" that the dealer receives from Subaru ... e.g. 2% holdback, 2% floor-plan allowance, additional discounts based on sales volume, other dealer incentives, etc. A Subaru dealer selling "at invoice" a vehicle with a MSRP of $25,000 will still end up making at least $1,000 gross profit on the sale.

For the buyer, dealer invoice is a much more useful benchmark than MSRP, because the invoice price better reflects different discount levels for the base vehicle, trim options, and port-installed options. Knowledge is power.

There are numerous reputable sites on the Internet (e.g. nadaguides.com, kbb.com, edmunds.com) where you can get accurate dealer invoice prices for Subarus. I recommend that you use several of them to "build" your specific vehicle and compare results. The "dealer invoice prices" should agree to the penny; if not, try again ... you've probably done something wrong.

On the other hand, I recommend that you ignore truecar.com's "Target Price," kbb.com's "Fair Purchase Price," or edmunds.com's "Price Promise," and the like. They are just dealer-biased "eye candy" for naive shoppers. Use dealer invoice price as the fixed benchmark instead.

That isn't true at all. The invoice is a vin-specific representation of the car as it's built and shipped. It doesn't change, and it isn't an arbitrary value. And yes, they WILL sell a car at no profit, and sometimes sell cars at a loss to move product. It's obviously not the norm, but it happens more than you'd think.

At a dealer loss or Subaru loss? ( I'm really curious about this, because I know you know what you are talking about). When I said arbitrary I meant its value isn't really meaningful to how much the dealer pays for a car. I understand it's not pulled out of thin air. But my understanding is what a dealer pays for a car has many variables including sales volume, incentives from Subaru, time of the year, new model delivery...

When I see the words "invoice price" in my limited business to business dealings that was always actual cost to the business. In car sales and probably many other sales it is just another number it seems.

At a dealer loss or Subaru loss? ( I'm really curious about this, because I know you know what you are talking about). When I said arbitrary I meant its value isn't really meaningful to how much the dealer pays for a car. I understand it's not pulled out of thin air. But my understanding is what a dealer pays for a car has many variables including sales volume, incentives from Subaru, time of the year, new model delivery...

 

When I see the words "invoice price" in my limited business to business dealings that was always actual cost to the business. In car sales and probably many other sales it is just another number it seems.

Some dealers will sell a car for a loss (below cost including kick backs) usually to gain a manufacturer financial incentive. This is usually the end of the month deals that you hear about. I bet this isn't applicable to most Subaru dealer with inventory/production issue they have.

At a dealer loss or Subaru loss? ( I'm really curious about this, because I know you know what you are talking about). When I said arbitrary I meant its value isn't really meaningful to how much the dealer pays for a car. I understand it's not pulled out of thin air. But my understanding is what a dealer pays for a car has many variables including sales volume, incentives from Subaru, time of the year, new model delivery...

 

When I see the words "invoice price" in my limited business to business dealings that was always actual cost to the business. In car sales and probably many other sales it is just another number it seems.

Ammcinnis covered it pretty well!

Your understanding is correct, there are many variables that go into the actual cost. Dealerships that are just giving away cars - high volume - are typically going to have bigger kickbacks/bonuses to pass along to you. I can't speak to other industries (clothing, restaurants, etc), but I don't think I've ever known the "actual" cost of an electronic item, clothing item, or restaurant dish that I've purchased!

In terms of the loss, it's a dealer loss. This isn't unique to a specific dealer either. The vehicles you see on a lot have been bought and paid for by that particular dealer at a set price (which, again, has many factors including kickbacks from volume sales, incentives by region for that month, etc etc), and from the moment they are unloaded off of a truck, it's a ticking time bomb of money loss. If the floor costs (what it costs per vehicle/per day to take up space there) are high enough, and the car sits for long enough, then you reach a point where the dealer has LOST money. Even if they sell it for a value above their initial cost, they've taken a "loss" because it's cost them more to store it there than they had in it for profit to begin with. At that point, they know they have a loser, and will do whatever it takes (typically) to stop the bleeding. I.E., DEEP discounts, free accessories, etc etc.

Something to keep in mind though, even those "losers" are going to help them recoup bonus money at the end of the month if their volume metric has been reached.

Lastly, keep in mind, everyone LOVES to fixate on the price of a car when determining value (or "how good of a deal they received"). There are multiple parts to a deal, including financing rates, your trade, accessories, warranties, gap insurance...plenty of places for us to make money. That's why the high pressure model works so well for a lot of these dealerships. Get you down there for the price, end up making more on the back end of the deal because you've reached a point where you just want to get the hell out of there and are ready to sign just about anything.

The GOOD news, is that there a lot of Dealerships out there who are moving away from this model. It's become much more consumer friendly.

Anywho, sorry for the bouncing around here, I'm actually trying to sell some cars myself today Hopefully that helps a bit!

OH, one more quick thing... the reason the Subaru VIP pricing is, in my opinion, a great deal for people...if you read the fine print, it's a set price (very fair, good savings), set financing (the dealer can't mark it up), and the dealer still gets to make money (they get a set dollar amount back FROM Subaru on the vip deals, because of the fixed pricing).

That is an awesome explanation as to how things work at a dealer and the whys. Thanks! Good luck with your sales!

My attitude with car buying has always been to give my business when I feel good about the situation period if it doesn't feel right no harm in waiting there will always be another car to buy.

That is an awesome explanation as to how things work at a dealer and the whys. Thanks! Good luck with your sales!

 

My attitude with car buying has always been to give my business when I feel good about the situation period if it doesn't feel right no harm in waiting there will always be another car to buy.

No problemo! I'm a big believer in education...car buying shouldn't be shrouded in a bunch of mystery!

That's a great attitude to have, and it's one of the reasons I love what I do so much. I don't HAVE to sell my clients a vehicle. I work off of referrals, not walk ins, so there isn't any pressure, and it (almost every single time) ends up with a customer that gets to take as much time as they need. Good on ya for being able to walk away!

If you ever have questions, feel free to hit me up in a PM