Deal check on 2021 Subaru Forester Touring in Colorado

Ask the Hackrs
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#1

EDIT: Please see my follow-up post below: Deal check on 2021 Subaru Forester Touring in Colorado - #7 by cplaz

I am trying to make these numbers work, and I was able to achieve the pricing sheet a dealer in Denver (80211 ZIP) sent me by adding a $500 “down payment.”

This is on a 2021 Forester Touring. The dealer is quoting for a 36 mo, 12k mile per year lease:

$36,888 MSRP
$33,602 after discount, but then adding in $599 for a windshield replacement protection plan for a
$34,201 sale price (7.3% off MSRP)

Their pricing sheet indicates $448/mo with $450 cash due, $432/mo with $1,000 cash due, and $402/mo with $2,000 cash due.

This calculator is my attempt to replicate the $400/mo pricing, but I get there with $1,600 drive-off. I would like to minimize drive-off to first month and avoid capitalizing any other payments.

Calculator link

What am I missing?

#2

Windshield replacement is not residualized, so by adding it to the sales price, you’re inflating the RV by about $250.

Are there any incentives that are being rolled into that discount that could be taxable?

Is $27 for gov fees really an accurate number?

#3

Windshield replacement is not residualized, so by adding it to the sales price, you’re inflating the RV by about $250.

Would it be better to ask to pay this up front? I don’t think it’s a scam, as it were, since cracked windshields are common here and replacement glass + the camera configuration is $1,000+.

Are there any incentives that are being rolled into that discount that could be taxable?

I do not believe so, but it’s impossible to tell from the quote sheet I was sent. They (they are an AutoNation dealership) list the discount as “AutoNation Savings” to arrive at their price.

Edmunds indicated there were no manufacturer incentives.

Is $27 for gov fees really an accurate number?

This was listed as “other” and I assumed it was for administrative fees. Other dealers for other makes have quoted $60-ish, which seems really low and/or puts the onus on me for registering the vehicle, since Colorado treats it like a property tax.

#4

I always cringe when I see these adds, but OE windshields are getting extremely expensive. My Accord was $1250 last time I cracked a windshield. I think that CO is one of the states that does not mandate separate glass coverage in your insurance policy. Top tip: shop for an insurance policy that has a separate full glass coverage within the comprehensive policy.

This is my 12 month comprehensive cost, $1000 deductible but $0 on all glass with full OE replacement. IIRC the glass coverage added around $15/yr to my comprehensive for each vehicle, but I was then able to increase the comprehensive deductible since I had it low specifically for glass. In my case it was a net savings to add the glass coverage.

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#5

I would absolutely consider getting windshield replacement whether it is through the dealership or insurance. The updated Forester had many cracked windshield issues (weaker windshields most likely).

FWIW, if you use insurance replacement, there is usually no fee for Eyesight recalibration with Safe-Lite.

Edit - Subaru’s rarely have any incentives. Only ones I can think of are loyalty or Ambassador, both of which are untaxed and coupon codes.

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#6

If you’re in CO and not talking to Heuberger Subaru to get baseline pricing, you’re wasting time and energy. They’re one of the highest volume Subaru dealers in the country, so if you’re anywhere close, that would be the place to start.

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#7

Thank you to @28firefighter for mentioning Heuberger.

The AutoNation deal was poor, as I figured.

Colorado registration is the responsibility of the end consumer, and likely delayed at least a few months because of COVID.

I reached out to Heuberger and another dealer. Both were smarter, and able to run the numbers transparently (mostly) and without a finance manager.

Schomp got me here [calculator link], marking up the MF to 0.0012 but offering a $0 dealer fee and no crap, with drive-off at just first month + the filing fee. This comes to $431 DAS and $431/mo.

Heuberger then sent me this quote. They were slightly off on taxes, but looks to be at the correct 0.0007 MF. They do charge a dealer fee, but the quote includes a discount line item that equals the dealer fee. And, I do not understand the inclusion of the -$432 cap cost reduction line item, which gets DAS to $500 and monthly payment to $411.

It seems to me that if the other dealer would avoid marking up their MF, they would come in at just exactly $400/mo, which is my goal and what I would consider the ideal deal. I worked that up here.

There is a difference of a few hundred dollars MSRP because of packages, but I think I am closer. Would my hypothetical be a good deal? Is this the time to start playing the two against each other to get to $400?

#8

If that’s your target price, just contact one and say “If you can do this price, I’ll be there in an hour to sign.” If they say no, move on.

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#9

And if they say no, you’ve probably maxed out your discount. That said, I’m pretty sure Heuberger doesn’t negotiate.

#10

This is correct. Heuberger doesn’t negotiate but their prices are not as competitive as years past. They used to have the best prices nationwide, but they changed their price model a few years ago.

Subaru also does not allow out of region purchases - otherwise I would recommend buy out of state.

#11

The attempt at a best deal to me would seem to be to get Schomp, who are closer anyway, to stop marking up their money factor.

Either way, and understanding that this is a very subjective question you all don’t love to answer, are these “good deals” or am I missing somewhere that I’m getting screwed?

#12

The discount isn’t anything special - I typically try and target 10% off but depending on region and inventory, it isn’t always doable.

You’re not going to get a unicorn deal with Subaru, typically, so if this is the car you want you’re going to have to pay for it.

#13

Okay with paying for it, just trying to not be a horror story or laughed at for taking a terrible deal, and trying to continue to learn :slight_smile:

Everything else we’ve considered would be a similarly poor lease (Sorento) or we didn’t like (Passport, Pilot, 4Runner, Highlander)

Will look at Tiguan and Volvo before a final decision.