I am looking at buying a new car that the kelly web site lists as wholesale $23600 as far as I can tell, and retail at $25800. I was quoted a price at the dealer of $25,300, and told that this is $500 above invoice, which the dealer is willing to show me when the deal is done. I also asked if this is the best he can do, which he indicated that some more might come off.
I need advice as to what to do, this is the 1st new car I am buying, and I am not skilled at dealing. I plan to pay this in cash (small unmarked bills if it will help), and w/ no trade in.
It is a basic Outback 2.5 i model with some options.
Have you tried Autotrader.com or other such sites? I was able to find a dealer on 8 miles from me selling what you want for around $21,000. And the prices ranged up to $25k. I found the last 2 vehicles I bought on Autotrader.com.
-Don’t get the Outback. It’s just a Legacy with a couple dozen extra pounds of plastic cladding and a 1" lift in the suspension. These get rid of the sportscar-like handling* the Legacy has.
-Instead of getting an Outback, get a 2.5 GT. The extra ground clearance is marginally useful off road. The turbo-motor is useful at all times and doesn’t incur a significant gas mileage penalty.
-Find another dealer. A good one is content to make $500 on the sale of the first car to a new customer - they make it up in volume and repeat business.
Call dealerships and ask to speak with their fleet or internet sales manager. They will often give you a direct no BS quote that may be only $100 over invoice. They deal in volume, and don’t want to waste their time haggling with you over every penny. If you’re talking to the vultures circling the parking lot -you’re guaranteed to lose money.
A few hours spent reading the material on http://www.carbuyingtips.com could save you thousands. I bought my last car using the basic approaches outlined on that website, and I ended up getting it damn near at cost. I spent exactly zero time haggling with a dealer in a cramped, windowless room. I never had to threaten to walk out. I got five bids via email, chose the best one, drove down, wrote a check, and drove home in my new car.
Depending upon the market where you live, you might not do quite as well with a Subaru (I was buying an Accord), since they tend to be in demand, with a limited supply, but you never know when the dealers are going to be getting hungry.
By the way, “invoice” is not the price the dealer pays for the car. There’s almost always something called a “holdback,” that often amounts to 2% or 3% of the sticker price. So, the sticker says $25,000 and the invoice says $23,000, but what the dealer is actually paying is more like $22,250. That’s how dealers that will sell you a car for less than invoice are still making money.
Well I really want that extra lift, as I take some/many dirt and gravel roads along w/ unplowed roads quite often. I am not all that interested in ‘sportscar’ like handling, if so I would buy one
It appears that the turbo and 6 cyl gets 19/24 mpg, while the basic engine gets 22/28mpg, this is for the Outback wagon, MPG is also a prime concern that knocks out the high end engines. The GT is somewhat more efficent, but then again MPG is the secondary factor.
Thanks, I didn’t know this was an option.
Yes that’s what I thought, certain dealer incentives. A very good site also, I have already put in an hour on it.
