Will dealers wiggle off of MSRP price on Legacy?

Hello everyone,

 

I was able to test drive a Legacy and was impressed. However, the traffic was bad at time of day and I had to take feeder road circle drive. Car did not appear to lean on turns a whole lot and was comfortable. I drove a plain jane car, but spotted a white premium model 2.5 I liked. It was priced around $24,800 or so. They did not value my trade and we did not talk any numbers as I was gathering information. My trade is a 2013 model very nice condition with 11,000 miles. They did say they would give me a good price, but no numbers were discussed.

 

The question is will they budge off of the MSRP? I see some spot on the page where the car is advertised for "price quote" or special pricing. I know some car companies will NOT come off of MSRP. I know VW usually holds to their guns when it comes to their diesels. Anyway, it will be another week or two till I get back to the dealer and make a decision. They are about an hour away. Although I have money to buy the car, not going to give them mine for nothing. I will just grit my teeth and drive it longer. Thanks

Maybe it depends on the dealer, but my dad bought a Legacy and they wiggled a little. Dont member how much

http://legacygt.com/forums/showthread.php/2015-legacy-pricing-deals-229141.html

Your 2013 should fit under Subaru's guarentee trade-in program. It's usually higher than the book trade in values.

I just paid $2,300 off MSRP for a 2015 Limited.

There's always wiggle room. I used to sell cars. These guys will do an say anything for you to pay that MSRP or say they can't bla bla bla. I do know with imports like mazdas (I used to sell) don't have a huge mark up between 200-1000. But I would assume Subaru has a bit more assuming the demand for them. If and when you do purchase make sure you know everything before you sign.

Price

Trade in value

Interest-play hardball banks will compete and dealers are allow to mark up I believe up to 2% to make money on the back end.

Tax

 

I say this because what may seem like a good deal might just be hidden cost in other places like they lower the value in your trade when you are excited about the price of the vehicle just to make that very little bit extra. Loyalty should qualify. And I wouldn't buy at the first dealership you stop at either. I'm sure you probably know all of this but I figured I would throw my two cents just in case. Good luck

And if you're paying cash (which they honestly hate because they make no money on the back end) don't tell them until the end and they are making you sign the credit app, the managers will treat you differently and they will gear towards you financing. Don't tell them too much. That's what they do find out everything g about you then use different tricks and tools of the trade against you to get you to sign the dotted line. If you have any questions you can PM me.

 

An don't buy an extended warranty.

The dealership I worked at sold us the warranties for 700 and there we're people paying up to 2 grand for a warranty that will deny a lot of stuff. The manufactures warranty will do just fine.

I wouldn't pay over invoice for any Subie that isn't a WRX/STi.

I don't agree with you any Subaru except WRX/ST I which are not my cup of tea. But back to the main op question. I always only pay invoice but I have no problem walking away. But any time you have a trade in game on. Yes I just purchased 2015 3.6r Legacy with Eyesight and all option available and yes I paid Invoice. Remember the dealer always get extra on the back end for volume sales. Then I received another 500 off from SOA for being a loyal customer

Fill in your profile location.

 

Where do you live?

My point was those models typically have less room for negotiation due to supply/demand.

Never, EVER pay second sticker on a car. Never pay MSRP for a car.

 

Invoice on the '15 Legacy is roughly $1200-$2000 off factory sticker (2.5i - 3.6r).

 

Also, the Subaru ASPCA program has a thing where you can 'donate' $500 (fee/membership) and get no hassle invoice + ?% at a dealer.

I paid invoice for mine and got another $500 credit at the top of that from SOA.

UPDATE: They called me yesterday from dealership telling me to "hurry" over there so I can get the end of the month incentives. I know in my mind it is a "game" because that happened on the last car I bought. I did not go when they wanted and I still got the deal I wanted. I do not want to be rushed into this as I am still carefully thinking this over. I am liking what I am reading so far and liked the car. I do need a more extended test drive to make a final decision. Since I live over 50 miles away from dealership I cannot just run over there. Possibly Friday of next week I will be back over there. And who knows, there may be another car that comes in I like better. I am looking at the Premium model 2.5. Not crazy about the self dimming mirror which I believe may be an added option. Everything you all is telling me is not to take any deal offered. I have a certain amount I am going to pay difference period. My 13 Fiat 500 Sport is loaded with leather and other options and is clean with 11,000 miles.

I didn't like the mirror at first in my leggy but it actually is an awesome feature. I recommend Plus you can turn it off. Yes take your time buying. Check subarus website and see what offers they really are offering. Most the time it's incentives. Sometime manufactures will come up with some mid-month deals that only do last a week or two just to boost some numbers. For example at Mazda sometimes they gave an extra 500 for loyalty with 2% interest. Keep us updated! And good luck.

I see this "invoice price" thrown around a lot so what is the invoice price? All dealers should pay the same for the same cars so give an actual number. I suspect it is just a marketing tool to make people feel like they got a good deal.

 

Bottom line in my experience the dealer is making money off a car sale or they won't deal with you. Accept that and move on, you are very smart to leave for a few days to think about it. I am sure there are great deals out there especially with loyal customers, but to think you got one over on a car dealer is just naive. They are in business to make money period and they do on every car they sell.

take a look at www.truecar.com and you can get a good idea on pricing on vehicles in your area. But as many others have said, please always target invoice pricing. No one should ever be paying MSRP.

There it is again! Lol! True car gives a reference to msrp for your area not the pixie dust that is called "invoice price". Just use Internet Sales I have never had an issue with buying a car that way and was always satisfied with my OTD price. $15.6k for the wife's Tribeca 7 pass limited 3 yrs old. $17.6k for my lgt limited last December. See I put actual prices up there!

Buying used cars is also a different game since you don't know what the dealer has invested in the car.

 

When it comes to new cars you are somewhat right in that every dealer pays the same amount for the car. However, there are incentives the dealer receives for selling a lot of cars, etc. Therefore the bottom line price is different between dealers. Invoice may be as arbitrary of a price as MSRP but it's at least a good starting point for negotiations.

Well I don't know where you live, bUt my dealer accounts are short on inventory and there is enough interest on the 15 legacy and outback to hold gross over invoice.

Buying used cars is also a different game since you don't know what the dealer has invested in the car.

 

When it comes to new cars you are somewhat right in that every dealer pays the same amount for the car. However, there are incentives the dealer receives for selling a lot of cars, etc. Therefore the bottom line price is different between dealers. Invoice may be as arbitrary of a price as MSRP but it's at least a good starting point for negotiations.

So again every dealer pays invoice price for the same car, yet no one knows what that price is. Seems like a pretty good scam on consumers to make them believe they are getting a deal. For a used car you can look up trade in and reasonably assume the dealer paid around fair value if that most pay wholesale auction prices regardless of the actual condition of the car.

SoCal has a glut of Subaru dealers so that helps. But I'm not in the market currently so I have no idea what it's like for the '15 Legacy/Outback. I can only speak to prior experience as the Fozzy is our 3rd Subie purchased new and honestly the buying experience was almost identical to what happened when we bought our BL6 in '05.

 

Invoice price includes holdback. Holdback varies between makes. For example typical GM holdback is about $1200. Ford traditionally has a large holdback too. I have no idea what Subaru holdback is. Dealers will show you invoice price and invoice is the same for every dealer. Where's the mystery?

Well I don't know where you live, bUt my dealer accounts are short on inventory and there is enough interest on the 15 legacy and outback to hold gross over invoice.

Most dealer s in this area are fairly small so inventory is always short. When we bought our 07 legacy new there were only two on the lot.

So again every dealer pays invoice price for the same car, yet no one knows what that price is. Seems like a pretty good scam on consumers to make them believe they are getting a deal. For a used car you can look up trade in and reasonably assume the dealer paid around fair value if that most pay wholesale auction prices regardless of the actual condition of the car.

 

Invoice prices are published all over the place and some dealers will actually show you the paperwork with details.

 

The reason they are called "dealers" is bec they have many different ways of making money.

 

From new car sales: They make their money from the volume, manufacturer kickbacks. The more cars they sell, they get more allocations hence higher profits.

 

From used car sales: This is where they really make bunch of money. They will buy your car at a trade in value or obtain cars from auctions at wholesale value and retail these cars.

 

Financing: Banks will give dealers kick backs or a % for using their bank.

 

Service: Even if they sell you a car at invoice (or at their cost), most likely you will go back to that same dealer to service the car where the margins are huge.

 

Extras: Bunch of people buy extra warranties, window tints, paint protection & etc where the margins are close to 100%.

 

Again, this is their business and if you know how to play the game everyone will win.

 

Unfortunately, most people are super uneducated about car purchase and very intimidated by it. They walk into a dealership, test drive a car or two and start negotiating from MSRP ++ price to down to MSRP and think they got a good deal. They also end up getting hosed by trade ins as well.

 

If the end goal is to get a car at invoice price or even less than invoice price, it is completely doable.

Well I don't know where you live, bUt my dealer accounts are short on inventory and there is enough interest on the 15 legacy and outback to hold gross over invoice.

 

This is just a poor excuse. If I am going to save thousands (not really the case with Subarus) I will do a cross country trip if necessary and I have many times. There is always a dealer out there somewhere with access inventory that they want to get rid of or willing to sell a car even below invoice price to turn inventory and record sales.