buying my first subaru

all.

i've settled on the forester 2.5 xt as my first subaru. i've found a dealer in town that selling a 2005 w/ 1700 miles on it. they're asking about $800 below invoice (as i've priced it on kbb.com), presumably due to the high milage.

my concern is that this car has probably had a relatively hard 1700 miles on it, as this particular model appeals to sports driving enthusiasts.

how concerned would you all be with this deal? i've heard that you can't kill a subaru and as far as i know, the car would be covered under subaru's factory warrantee. since they're already asking for less than invoice, what's a reasonable starting point for my asking price?

thanks,

Reply to
phadras
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1700 hard miles, I'm sure. I know how I drove it when I tested one. I always test drive one I don't want (wrong color or trim).
Reply to
Alan

My gut and experience says you can do better.

Dealer invoice is not dealer cost. Don't forget to factor in that the factory pays them 3% holdback on the invoice cost--so actual dealer cost on the vehicle is 97% of the invoice, minus any factory to dealer incentives (if any).

Your concern is a valid one...and 1700 on a "new" car is a hell of a lot. I think you're in a position to remain unemotional and either turn the screw on them further on that deal (which isn't that great, honestly), or get them to match that price on a truly new one.

Factoring in hold-back for actual dealer cost, I managed to get a local dealer down to making I think $250 on my car. The salesman was near the end of his month and very close to a nice incentive vacation package for a weekend getaway and was _very_ motivated.

Another must-read:

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I also found consumer reports new car pricing service very useful because it listed all options and packages out individually, so i could tally up invoice cost with just that print out in hand for any given unit on a dealer's lot. Edmunds.com has the same pricing info though you'll need to be in front of a computer to price out a given option package.

Best Regards,

-- Todd H.

2001 Legacy Outback Wagon, 2.5L H-4 Chicago, Illinois USA
Reply to
Todd H.

outstanding information. you're right: this seems like less and less of a great deal the more i learn. my dogma was (and still is) never buy on test drive day, no matter how much you like the car and/or deal. now it seems as though i'll have to wait on my fightingchance or consumer reports packet.

thanks again.

Reply to
newman

Those 1700 miles are probably "Dealer Employee" miles.

Ever notice those special "dealer" plates? Also ever notice how aggressively asinine they drive? Would you want them doing that in YOUR car? After all to them, its disposable...

Offer em a buck off invoice per mile at least, but hit em with that after you do stuff like look at tire wear, etc. that might give you hints as to what was done with the car.

Reply to
Sparky Polastri

Actually, I bought mine oneline on their website and printed it right off...

Dont' forget that buying a new car can be a lot of fun... because in no other situation are you dealing with a commodity item you can get from multiple places for which you can have such perfect information on exactly what the dealer paid.

I enjoyed the hell out of it, frankly. :-)

Be sure to say no to all the high-profit-margin extras (rustproofing, extended warranties, financing if you don't qualify for the best rate--though I used their 2.9% financing to good avail, etc) they'll try to stick you with after you agree on price, and set a timer and tell them "I'm setting my watch for 45 minutes. If I'm not out of here in that amount of time, this deal is off.

Lots of great tips like this on that web site I linked ya to.

Have fun!

Best Regards,

-- Todd H.

2001 Legacy Outback Wagon, 2.5L H-4 Chicago, Illinois USA
Reply to
Todd H.

yes, i just ordered the packet from fightingchance.

i test drove the car this am (now up to 2500 miles!!). we got about an inch last night and i insisted we take it on the uplowed roads behind the dealership. what a champ this thing is in the slush! and it really hummed on the highway... there were no visible defects or signs of wear and tear. it handled and drove beautifully.

long and short, that's the model for me. as for the particular car, they're actually offering it as used.

anyone care to help me formulate an offer? here's my thinking:

since the car is being offered as used, i will assume that it has had a previous owner (i stupidly did not get the whole story from the salesman). therefore, there should be a fixed amount of depreciation that occured based soley on that fact (i.e. a care looses X% of its value as soon as you drive it off the lot). I will deduct that from the invoice price. furthermore, i am certain that this car has been driven hard to this point (although for being manufactured in 4/04, the milage is probably just on the low side) so I will deduct more for that.

thoughts? proposals? oh yeah, i'm paying cash but they don't know about that yet (or my terminally ill 93 explorer trade-in).

sorry for the long post, but you guys are awesome. i can't wait to get my own soob!

Reply to
newman

Reply to
Dave

invoice is $24, 258 (turbo boost guage and short throw shifter installed). assuming this is a dealer buy-back (my salesman has the day off today, so i couldn't get the full story) i think i've come up with a negotiation strategy i'm comfortable with. of course, i can walk away at any time which gives me an advantage. i'd like to let this guy deal because i believe they'd like to get it off the lot (at a lot of dealers it doesn't go to internet sales unless it's been on the lot for

i think i'll wait until a little closer until the end of the month (although i'm secretly chomping at the bit. it's a little like waiting to call a girl you're interested in. i've gotten a lot better at "playing it cool")

Reply to
newman

Invoice price less the 3% holdback you mean. :-) AFter all, that first owner paid for that I'm certain.

Dont' expect to get more than $500 for the trade in if you negotiate a solid price. You'd do better selling it privately.

It's a rush!

What's the invoice on this thing? I'm thinking the miles and used ness and all that jazz is worth at least couple grand below invoice. Or get them to throw in a 100k no deductible extended warranty at no additional cost to offset your "hard driven miles" concern.

The key to this negotiating is having it crystal clear to yourself that you kinda would rather not have this vehicle unless they make it worth your while on price. You'd rather have an actually new one.

Be prepared to walk away, and hell start out at 4k below invoice. Wort they can say is no. Time final negotiations for a rainy or gloomy icky day near the end of the month. :-)

If you can find out how much they rape the previous owner out of on return of it, that might give additional leverage. Note that on this unit, you don't have perfect knowledge of what the dealer has or has not already made on the car. Which makes it something you can be more aggressive on to ferret out. :-)

-- Todd H.

2001 Legacy Outback Wagon, 2.5L H-4 Chicago, Illinois USA
Reply to
Todd H.

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