Looking for a new Subaru? Dealer Invoice (Minus) Dealer Holdback

Typically I'd post this in the SoCal section but I know there are members in the tri-state area who are looking for a new Legacy or possibly other Subaru. [b]Blow-out at Irvine Subaru, Irvine, CA [/b] Got a call this evening from Jeremy Dugan. Jeremy is the son of Desiree Dugan the owner of Irvine Subaru. I've been working the network to find the best deal on a new LGT Wagon and he called to let me know that Desiree has authorized him to sell every new Subaru out the door at dealer invoice minus (you read that right - minus) dealer holdback. This is good on every new Subaru on the lot and those that you order by the end of the month. He cautioned that this does not include the STI since they are in too short a supply, system wide and it's the only model he cannot do this with. Here's the example that he quoted me: 5MT, LGT Ltd Wagon, w/PG 1 (SSK,PK, Momo SK), PEG 1 (Sec U/G, ADM), K5A (Air Filter), M5G (Cargo Tray), U5G (SQ Cross-Bar Set), Transportation That works out to $27,386 + $392 + $183 + $56 + $46 + $85 + $575 = $28,723. (Invoice) $28,723 (minus) Dealer Holdback of $1,188 = $27,535. At $1200 below invoice that's a great deal no matter how you look at it Two things to keep in mind: 1) This is good until the end of the month and is for any car on the lot or for orders (Exc STI) 2) Jeremy or Desiree will show you their invoice so you know going in what you're looking at cost-wise. Jeremy indicated that he's going down to Punta Escondido to get in some long-delayed surfing. He leaves next Tuesday and will be gone about 10 days. He also said that if you come in or call while he's gone, make sure you ask for Desiree. His number is 800-970-5755. Call him, this is real. I asked him if he had any objections to my posting this on my Subaru boards and he was enthusiastic about it. He also indicated that he's getting ready to send in his allotment request this Friday 11/12/2004 so if you want to order a car, it should be here in about 4-5 weeks, just in time for your holiday fun. Disclaimer: Realize folks, that I'm getting nothing out of this except the pleasure of seeing someone else get a new Subaru. Happy shopping and let us know if it works for you. I'll be heading up there tomorrow. SBT

Oh my!! I must convince my dad when I go home for Thanksgiving. THANKS!!!! You are my savior and made my day (and many more to come if my dad says yes). This is probably the best thread on this site. Sorry everyone else! :lol:

That is a sickeningly good deal. I'm cool with my purchase at around $600 below invoice, but man... a dealer selling for zero profit almost makes no sense at all :confused: . All those in SoCal who were on the fence before have no excuses now! :lol: Jump on this deal!

Dear Lord, I must be dreaming!

What is MSRP on the model you are pricing?

P10 I'm pricing a 2005 Legacy 5MT GT Limited Wagon and MSRP as equipped would be $31K and change which makes holdback about 3.5% on this model. I also asked Jeremy what Subaru holdbacks are running and he indicated that they do run as high as 5% on some and he will show you that too for each car. SBT

Ah screw that, I bought mine from theme 2 weeks ago and they held out for making me pay the forking advertising fee saying ' we're losing money ' if they had given me the price they quoted before i came in there. i still got a great price, (300 below) .. but be cautious that things don't mysteriously pop up.

I had heard about the advertising price and asked Jeremy about this too. He said that some of the models come in with it on the sticker and some of them don't. He said that they'd knock that off too. I'm running up to SFV tomorrow morning to pick up a 45 Ton hydraulic shop press for my garage I'll definitely swing by on the way back home. If anyone gets there before me, keep us posted. SBT

I spoke with Rusty (Jeremy's brother) and he told me the holdback on a regular GT is $546. Here's what he quoted me: Legacy GT Automatic Sedan Dimming Mirror Wheel Locks Security Subwoofer Air Filtration $25,941 Not really the best deal, IMHO, but I'll see how low they are willing to go.

If it sounds too good to be true..... it probably is.....

Edmunds has invoice on that car at [b]$26,131 ($28,550 MSRP)[/b], and that includes the $575 transportation fee. Holdback is going to be [b]$857.00 [/b](at 3% of MSRP). So, you looking at [b]$25,274[/b] or less depending on holdback and he has to show you the dealer invoice and the holdback amount as part of the sale. Also, Jeremy stated that he's NOT going to charge the advert fee if it's on the sticker so look for that too. I'll find out tomorrow when I stop in on the way back from SFV. Remember, hold back is factored on MSRP not on Invoice. SBT

Can someone get the accurate holdback price of the non-Limited GT? $546 seems like it's a bit too low, but if someone else can confirm or provide information that says otherwise, that'd be appreciated.

I recently purchased a 5MT LTD GT in MA for $26,200. Dealer invoice on the car was $26,292 not including $575 destination charge. MSRP was $29,292 (including desitination charge). I didn't see any advertising fee. I figure I got the car for about $650 below dealer invoice. On top of that, we got 2.9% financing over 4 years. So there are deals to be had on this car, regardless of where you live. What I have trouble understanding, is why they aren't selling better. Most reviews on the vehicle have been excellant and with the cars selling under dealer invoice, low financing, and all the TV advertising Subaru has been doing, it should be selling better. For us, it was a no-brainer.

[quote name='TonyDB']What I have trouble understanding, is why they aren't selling better. Most reviews on the vehicle have been excellant and with the cars selling under dealer invoice, low financing, and all the TV advertising Subaru has been doing, it should be selling better. For us, it was a no-brainer.[/QUOTE] it will take some time for brand recognition to kick in. Most people won't check out a Subaru dealer, as they are used to the outdated older model legacy. I think when most non-enthusiast people think of subaru, they still think outback wagon, or wrx bug eye sports car. It takes a lot to pull customers away from the well known honda accord, and toyota camry. It'll happen, but it may take a couple years.

North American consumers are afraid of change- that's why GM and Ford were able to survive so long with selling the same basic car for a decade at a time. As long as Subaru is profitable- I'm happy, especially since I never want them to overgrow and lose their core values, like Honda did. hundredth post- w00t :D

Irvine has lots of good reports, but explain how or why they would possibly want to sell at no profit (for real?) Unless there is some OTHER holdback we aren't aware of, this is what we've always been taught forever is the REAL dealer cost. it makes no sense to sell at your cost. ??? WHY are they doing this sale? Only thing I can think of is they want to clear out all old inventory to make room for 06's, but then that doesn't make sense since they are doing it not just on their inventory but on orders? Perhaps they are taking a long range approach of giving such a good deal more folks get into Subaru's, which will increase their future sales, and win them good clients? Few businesses have such foresight, and can afford to operate in this manner long enough to win the pay off. /stumped -Allen

Herb Gordon and Fitzmall in MD, have been operating like this for years. I think they get some sort of volume bonus that makes selling cars at cost or below, worthwhile. There is always hidden money that the consumers don't know about. I'm sure the legacy has a volume dealer incentive.

Jeremy just called me 25 minutes ago and said he was willing to go lower than $25,217 with destination for a Legacy GT automatic with sub, security, air filtration and floor mats. I will see what he quotes me when I receive his email. My hunch is that they want as many B9x's they can get at launch, and by selling so many Subarus, SoA will give them more B9x's and they can sell it for mas dinero when people clamor for it due to markups :D It's like what Baloo's boss told him on TaleSpin (anybody remember that great show?) "You got to spend money to make money!" :cool: [quote name='akm3']Irvine has lots of good reports, but explain how or why they would possibly want to sell at no profit (for real?) Unless there is some OTHER holdback we aren't aware of, this is what we've always been taught forever is the REAL dealer cost. it makes no sense to sell at your cost. ??? WHY are they doing this sale? Only thing I can think of is they want to clear out all old inventory to make room for 06's, but then that doesn't make sense since they are doing it not just on their inventory but on orders? Perhaps they are taking a long range approach of giving such a good deal more folks get into Subaru's, which will increase their future sales, and win them good clients? Few businesses have such foresight, and can afford to operate in this manner long enough to win the pay off. /stumped -Allen[/QUOTE]

Well I did it. Just pulled the trigger on a new 05 Legacy GT Ltd Wagon, SWP, 5MT with Irvine Subaru and I got to tell you it was the easiest buying experience I've ever had. I typically figure all the variables down to the gnat's eyebrow, put on my game face, and go do battle. This was just too good to pass up and I needed to see for myself whether this was what it was made out to be. After 30-45 mins, including a loooong test drive (what a sweet car), we had all the paperword out, the Subaru Sold Order Form filled out with the options, a copy of a check for a deposit and we were back on the road to San Diego. So worth the trip! Couple of things worth noting: 1. Dealer cost is what SOA charges the dealer for the vehicle, any options, Destination and Delivery ($575) and Regional Advertising ($275) (DDRA) 2. Dealer invoice is the actual document that accompanies each car (electronically in this case) and lists both the Suggested Retail Price (MSRP) for the car and its options and Dealer cost for those items. Also, the invoice lists charges for DDRA under Dealer Cost but only DD under MSRP. 3. Dealer holdback is listed on the bottom left side of the Dealer Invoice. It's the first figure on the same line as the Total Vehicle Price. In the case of this car, it worked out to about 3.9% (3.88) 4. Start with the dealer cost sheet for the particular car you're looking for, pull off the dealer's vehicle cost and option cost(s), add $575 Dest/Del and subtract Dealer Holdback. Here's how the deal looks on paper. I've included the Dealer Cost, MSRP, Option Code and Description. [b]Dealer Cost / MSRP - Order code (Group - Item Description)[/b] $27,281 / $29,595 - 5BH (2005 Leg GT Ltd Wagon 5MT, SWP, Taupe Interior) 183 / 281 - L96 (Pop Equip Grp 1 - Security U/G, Auto Dim Mirro) 131 / 201 - L9H (Pop Equip Grp 2B - Armrest Ext, Rear Cargo Net) 392 / 601 - L97 (Perf Grp 1 - STI SSK, STI PK, Momo Shift Knob) 85 / 150 - U5A (Util & Conven - Cross Bar Set Square) 46 / 75 - M5G (Util & Conven - Rear Cargo Tray, Ivory) 178 / 273 - D5A (Sound System - Subwoofer/Amplifier) [u]$28,296[/u] [u]$31,176[/u] + 575 575 Destination/Delivery + 225 225 Advert Fee [u]$29096[/u] [u]$31,976[/u] [u]- 1,188[/u] Dealer Holdback [b]$27,908 Irvine Subaru price before TTL[/b] You can see from the numbers that my price is almost $4,100 below MSRP and almost $1200 below dealer cost. I haven't been able to find a deal like this anywhere. [quote name='plunk10']Herb Gordon and Fitzmall in MD, have been operating like this for years. I think they get some sort of volume bonus that makes selling cars at cost or below, worthwhile. There is always hidden money that the consumers don't know about. I'm sure the legacy has a volume dealer incentive.[/QUOTE]P10 - This is Irvine Subaru's focus. The owner has been a #1 or #2 Subaru salesperson for a long time and now Jeremy is working toward that goal. SOA cares about moving car units, not on dealer profit. Subaru dealerships who move a lot of Subaru units, do get incentives, e.g., trips, cash, products, etc. Subaru is all that Irvine Subaru does. They're not dual-sited with a Chevrolet or Kia or Isuzu product line so their focus is on moving Subarus and adding value to the customer in terms of service and satisfaction both during and after the sale. Move the product for Subaru, get incentives to do more, add value for the customer in service, aftermarket and tuning, grow your business. From the looks of their service department, they are doing well in that arena too. Should see my car in about 30 days as the allocation request goes in tomorrow. Can't wait to pick it up. If you get an opportunity give Jeremy or his mom Desiree a call. They will get you into the car you've been waiting for with the most amazingly little amount of time and cost you'll experience anywhere. SBT

[quote name='axis008']Can someone get the accurate holdback price of the non-Limited GT? $546 seems like it's a bit too low, but if someone else can confirm or provide information that says otherwise, that'd be appreciated.[/QUOTE] A008 - Based on the cost sheet that I have from Irvine, an 05 GT (Non-Ltd) 5MT Sedan has an MSRP of $25,995. That would put holdback at ~$1040 (25,995 * .04). Doing the numbers from the sheet: ($23,912 + options (at dealer cost)) + $575 (Dest/Del) - $1,040 (holdback) would be your price. Let me know what options you're looking for and I can give you the prices. SBTh

Thanks Subietonic. Here's basically what I want: Satin White Pearl (just like you :)) 2.5GT sedan (non-Limited) with the Popular Equipment Group 1 and the air filtration unit. That's really it. I don't know if I should spend money on the lug nut locks. If anyone was smart they'd know that these wheels basically don't fit anything but a Subaru (or do they?). I'll probably end up buying aftermarket ones anyways. I still haven't talked to my dad, but I will find the right time tomorrow hopefully. I wonder if although Jeremy has already called in his allocation list, I can still order and get it by Christmas/New Year's.

A008, These are the numbers from the price sheet: 23, 912 (5AE 05 LGT 5MT Sedan) 183 (L96 PEG1) 53 (K5A Filtration System) - pulled from Edmunds.com (not listed in my sheet) [u]+ 27[/u] (MSV Wheel Lock) 24,175 [u]+ 575[/u] Dest/Del 24,750 [u]- 1,040[/u] Holdback (from the cost sheet) 23,710 Your price (before TTL ~2,075) WRT the wheel lock kit (WLK) - This may be the same across all of the WLKs offered but, as I understand it, the Subaru wheel locks are the same from kit to kit, meaning, if you got your hands on a Subaru "key" you could grab some wheels. Plus it's just 1 lock per wheel and the lock is different visually from the rest of the wheel nuts. I'm going to go with a McGard (PDM Racing - [url="http://www.pdm-racing.com/products/mcgard.htm"]http://www.pdm-racing.com/products/mcgard.htm[/url]) or Gorilla (Summit Racing - [url="http://store.summitracing.com/default.asp?target=eproduct.asp&N=120+4294923107+4294922919+302076"]http://store.summitracing.com/default.asp?target=eproduct.asp&N=120+4294923107+4294922919+302076[/url]). I use the Gorilla kit on my Konig Tantrums and like the product personally. However, IMO, the McGard kit is a better looking system and you do get more with the McGard. I didn't ask when the next order will go in but you could call and talk to Jeremy or Desiree and they should be able to tell you. HTH and good luck getting your Christmas order in for your car. AFAIK Desiree will be ordering today. SBT

that is a good deal got mine from them about 3 weeks ago for $400 over invoice, I rushed because of the Subaru GTP which ended November 1.

Thanks Subietonic! I think the panel filter wasn't on your list because it really isn't out yet, I don't think. Anyways, I really appreciate all the help you've given. I'll keep you updated.

Subietonic, do you know the measurements of the wheel locks for the Legacy? With all those numbers, I'm confused... I also have Gorillas on my Konig Divas on my Camry and they work fine for the price. BTW: I'm gonna pick up my Legacy from Desiree next week, and I will be walking out of the dealer, $27,570.12 poorer (including tax and license!) for a Legacy GT with these options: Subwoofer Auto-Dim Security Air Filtration All-Weather Mats Really great deal, and SBT, you are da man! [quote name='Subietonic']A008, These are the numbers from the price sheet: 23, 912 (5AE 05 LGT 5MT Sedan) 183 (L96 PEG1) 53 (K5A Filtration System) - pulled from Edmunds.com (not listed in my sheet) [u]+ 27[/u] (MSV Wheel Lock) 24,175 [u]+ 575[/u] Dest/Del 24,750 [u]- 1,040[/u] Holdback (from the cost sheet) 23,710 Your price (before TTL ~2,075) WRT the wheel lock kit (WLK) - This may be the same across all of the WLKs offered but, as I understand it, the Subaru wheel locks are the same from kit to kit, meaning, if you got your hands on a Subaru "key" you could grab some wheels. Plus it's just 1 lock per wheel and the lock is different visually from the rest of the wheel nuts. I'm going to go with a McGard (PDM Racing - [url="http://www.pdm-racing.com/products/mcgard.htm"]http://www.pdm-racing.com/products/mcgard.htm[/url]) or Gorilla (Summit Racing - [url="http://store.summitracing.com/default.asp?target=eproduct.asp&N=120+4294923107+4294922919+302076"]http://store.summitracing.com/default.asp?target=eproduct.asp&N=120+4294923107+4294922919+302076[/url]). I use the Gorilla kit on my Konig Tantrums and like the product personally. However, IMO, the McGard kit is a better looking system and you do get more with the McGard. I didn't ask when the next order will go in but you could call and talk to Jeremy or Desiree and they should be able to tell you. HTH and good luck getting your Christmas order in for your car. AFAIK Desiree will be ordering today. SBT[/QUOTE]