Just like the 5th gen thread, let's get the price thread going to track prices and MSRPs.
The MSRP/Invoice/Purchase Price/Extended warranty thread
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chvvkumar
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Frankly, I don’t really know. I suspect that if you can get 10% off the retail price of the car in this day, adding trim price plus package(s) plus any options. The market seems to be getting better for discounts. I was able to get about 9 1/4% off, so I took it because my wife’s Nissan needs a good bit of work and not far from new tires. We’ve put enough into that Murano, and it seems that it’s becoming one thing after another.
Plus, we are able to put down a sizable (to me) down payment, so we’ll finance the remainder for 48 months at 1.9%, this month’s special Subaru rate on the Outback.
Apparently the Onyx doesn’t qualify for the 1.9% and they said 2.9% is the best rate. I haven’t checked elsewhere, but hard to believe an easily checked lie would be told.
I’ll check around and push. It’s not like we want a rare car or have a 300 credit rating.
Andrew
I’ll check around and push. It’s not like we want a rare car or have a 300 credit rating.
Andrew
It looks link the Onyx XT gets the special 1.9%/48 month rate but not the NA Onyx. Hmm.
I had not paid attention to the fact that a couple of trims don’t get the special rate. I wanted the NA Limited, saw the rate, and didn’t notice that all OBs weren’t on the list.
First, be aware that "Market Value Selling Price" is NOT the same as MSRP ("Manufacturer's Suggested Retail Price"). Usually when a dealer starts quoting pricing in terms like that it is an attempt to promote the (usually-fictional) idea that cars are selling in the market for a markup above MSRP and then they offer a discount from an inflated "Market Value" to make you feel better and get the sale.
However, in this case, according to kbb.com: MSRP for a new Onyx with Popular Package 2 is an almost-identical $38,506 including the destination charge of $1345; and the dealer invoice is $35,840. So, other than a possibly below-par offer for your trade-in: at about $500 below invoice, this may in fact be a good deal. In my experience, depending on market conditions, when dealer inventories are at normal levels, as they appear to be now, one should usually be able to buy a car for $1000-$500 below invoice. Dealers are willing to sell for less than invoice because they get some esoteric rebates from the manufacturer, like "holdback", a discount for their own inventory financing needs. Buying near the end of the month or quarter is a good strategy because dealers have an incentive to boost their sales within a sales period to maximize the incentives they receive themselves from the manufacturers.
It would be interesting to see if they'd offer the same price on the new car without a trade-in. It is possible they are giving a good quote on the new car to induce you to sell them your trade-in below what you could get elsewhere. The sales tax issue does complicate the equation for you. Dealers generally make a lot more selling used cars than new cars. Selling new cars in some cases is a quasi-loss leader to promote their service department.
All the usual cautions to be wary of the various dealer subterfuges, add-on fees, etc. apply.
I believe they quoted a price for the car and I’m not sure that tying the new and old is legal (bundling). My plan is to see about a better price on the trade elsewhere and pay more sales tax but less overall.
I hate buying cars, so I guess I’m glad we keep them for so long.
I’ll likely pick up the 10/100 warranty after shopping for that, too.
Andrew
I hate buying cars, so I guess I’m glad we keep them for so long.
I’ll likely pick up the 10/100 warranty after shopping for that, too.
Andrew
Assuming that it is "normal" to be able to buy a new vehicle for $500-$1,000 below dealer invoice is ridiculous in a normal market. The dealer does have "holdback" on the vehicle of 3% times MSRP minus freight. The dealer also has some reasonable expectation to make a profit if he wants to stay in business.
There are incentives to the customer, incentives to the dealer, special financing terms, and other incentives for the consumer to buy any car that change monthly. Generally they are well publicized and can be found by searching on the internet. The average new car gross profit to the dealer is $2100 on what is on average a $45,000 piece of merchandise. Please find me an industry that works on a smaller margin.
Well run supermarkets operate on a 1%-3% margin, but that’s besides the point.
I’m trying to understand what, in the current market, represents a good price to pay for the car.
Am I already good enough on price or am I still $2K away? Or somewhere in the middle?
Not picking any fights, I just haven’t been in the car market since 2014 (we keep ‘em for a long time).
Andrew
I’m trying to understand what, in the current market, represents a good price to pay for the car.
Am I already good enough on price or am I still $2K away? Or somewhere in the middle?
Not picking any fights, I just haven’t been in the car market since 2014 (we keep ‘em for a long time).
Andrew
A good price is whatever you are comfortable with.
Supermarkets run on a 1-3% NET margin.....the poster above was referring to GROSS margin....very different.
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49 Posts
This approach is definitely good for the dealer side of things.
Andrew, I'm definitely not an expert, but I also don't have time to make the car buying process into a full time job. Our problem, it seems to me, is that the dealers hold all the cards and they're not showing. We have to use graphs and charts and other information to make an educated guess. It's frustrating.
If you're offered a $3200 discount on a 2024 Outback Onyx with Popular Package #2 and need the car now, that's a very decent price from what I've seen. If you can do better, great. If not, it's still an acceptable deal.
This was one of the apps that I used: https://www.kbb.com/subaru/outback/2024/onyx-edition/.
Regardless, I would consider a $3200 off the MSRP (Onyx trim, PP#2, destination charge--if memory serves) a good deal right now. I suspect that late summer will be better.
I also think that there are others on the forum who are better informed than I, but these discussions get lost in a long thread.
This is very true. Interestingly enough, new car dealerships operate on the same net profit before taxes margin and have for decades. Of course they have a far larger investment per location.
I think you have received several confirmations that you received a decent offer. The actual transaction prices vary greatly across the country and pricing outside your market can be very different.
The simple solution is to send an email to the dealers within your market telling them exactly the unit you wish to buy and offering to do business today for $1500 less than your current offer. If no one bites, you have a good offer. If someone accepts, you save money or have a new number to shop from.
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49 Posts
Ever since 2021 what is a good, bad, or great deal has been damn difficult to define. Up until that point it was way easier to evaluate. Based on very anecdotal observations I do think most dealers have inventory gradually increasing to higher and higher levels. Eventually my thought is depending on the model, package, etc there will be some very good deals, and there might already be those deals. However, it is still very ymmv, which is why it is difficult to say how good of deal something is.
Agreed.
A person has to consider the value of their time in researching, haggling, and thinking about a transaction. We feel that dealers have us over a barrel because they have the solid figures and we don’t, and we see amazing savings posted on forums, which may or may not be true.
A car transaction is a huge deal, and life is short. Get a fair deal and move on.
05 GT wagon(sold), 09 Spec B(sold), 18 3.6R Outback, 2024XT
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3,948 Posts
On our 24 XT the window sticker top price is $40195, we got them down to $38275, I think it was, for ordering the car the way we wanted it. Not a lot of add on's.
There are so many fees that get involved too. So you need to decide what is acceptable to you. I think I posted our pricing a few posts ago.
Invoice price or better is your target. You can use carquotes.com to get an idea of what invoice price is for your build. The site lets you choose the trim, package, and accessories. It will show you the MSRP, a target price(ignore this) and the invoice price(this is your actual target price).
I see the MSRP value struck through and an Estimated Savings off MSRP. I don't see any # labeled as Invoice Price.
A little help or picture? It's a Onyx Outback with Pop Package #2.
Andrew
A little help or picture? It's a Onyx Outback with Pop Package #2.
Thanks for the (additional) help.
Andrew
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7 Posts
From Carquotes.com,
The following is for Onyx without Pop Package 2
2024 Subaru Outback | |
MSRP
| $37,450 |
| Invoice
| $35,157 |
| Target
| $35,508 |
invoice price and MSRP for pop package 2 are as follows:
| $690 | $1,067 |
The following are for Onyx with Pop Package No. 2
| 2024 Subaru Outback | |
| MSRP
| $38,517 |
| Invoice
| $35,847 |
| Target
| $36,198 |
I hope this helps. Good luck with your purchase.
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