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ACA and Buying a Subaru


alcoons

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If you happen to be considering a Subaru, don't forget that your ACA membership puts you on the Subaru VIP program. I just happened to remember that this week and it made the purchase much easier. It was very easy (one call to ACA). The ACA then called Subaru and then Subaru calls a dealer saying that you should get the car at their invoice cost (or something like that). I then emailed 4 other local dealers telling them I was on the program. While I still received different quotes, as best I can tell, I got a very good price. At a minimum, the VIP program starts you at very low starting price rather than MSRP. My guess is that it is similar to the GM employees prices that happened earlier this year.

Note: They ask you not to start talking final price with a dealer before seeking this status. Rather, pick a dealer and call ACA first.

Al

Al Coons

Eddyline Nighthawk

Red/White

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>The ACA then called Subaru and then Subaru calls a dealer

>saying that you should get the car at their invoice cost (or

>something like that).

We got our Subaru (L Wagon) from Village Subaru (then Concord Subaru) at invoice, or what they claimed was invoice, which they also claim is their standard selling price. It had nothing to do with the ACA. Actually, I managed to beat them down an extra $100. It does make you wonder what "invoice" means -- somehow I doubt they are making $0 margin.

It also calls into question what the ACA is actually giving you other than cross promotion. I've always been skeptical that joining an organization for $35 could save you $100s on a car. If it wer really true, I think we'd see a lot more "canoers" and "kayakers" coming out of the woodwork.

BTW, we are quite happy with service as well as sales at Village, despite the fact that's it way the heck out in Acton. We did not like the in-town place that used to be in Arlington (name provided upon e-mail request) -- high-pressure sales techniques and a bad service reputation.

But I hope Ernie will chime in here. He's our 5-star subie expert.

--David.

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If Ernie chimes in, he will be lambasted for posting a commercial ditty on the General Message board.

Invoice is the price the dealer pays the wholesaler (Ernie Boch Jr in New England - when he's not welding...) for the vehicle. If there is a factory rebate in place, they can sell the car to you for invoice and make the rebate on the sale. This is not the only way the dealer can hide their profit.

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I guess this question falls into my area. Generally speaking, and regardless of what the car dealers try to say to convince you otherwise, the so called invoice price is not the price that the dealer paid to the manufacturer. First, regardless of maxim to do what the customer wants, businesses are out to benefit themselves at the consumer's expense. Second, no business has an incentive to reveal their costs, ever. Third, the invoice price usually doesn't include additional benefits they might receive for paying cash for the vehicles, the volume of their sales, the region of the country in which they operate, etc. They receive quite a few hidden benefits.

Does this mean the ACA program isn't worth it? Well, I can't comment on that since I haven't read up on it; however a quick look at the ACA site implies that it doesn't help much. 3000 off of MSRP amounts to nothing in the end, since you can usually get that amount of the price simply by walking out the door of the dealership. On the surface, it simply looks like Subaru pays $150 if you buy a car in the program in exchange for information about you as a customer (generealities of course pertaining to who might belong to the ACA). Subaru also gets free advertising and referral to its dealerships. Not a bad deal for them at all....

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>If Ernie chimes in, he will be lambasted for posting a

>commercial ditty on the General Message board.

>

>Invoice is the price the dealer pays the wholesaler (Ernie

>Boch Jr in New England - when he's not welding...) for the

>vehicle. If there is a factory rebate in place, they can

>sell the car to you for invoice and make the rebate on the

>sale. This is not the only way the dealer can hide their

>profit.

Not sure this is a commercial message...at least mine...It was about a benefit for club members that is specific to our requirement for joining the ACA. In the past, members have questioned the value of this and I was pointing out unexpected value for me. My goal was not to spark a discussion of Subaru's or car buying...I already have the car.

Al

PS. Ernie and I spoke at length about this last night during a great paddle at Mystic.

Al Coons

Eddyline Nighthawk

Red/White

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>If Ernie chimes in, he will be lambasted for posting a

>commercial ditty on the General Message board.

I hope that is a j-o-k-e, based on the kerfluffle a few months back. Ernie knows a ton about Subarus (and cars in general) and his contributing that knowledge does not -- in itself -- constitute a commercial posting.

Hey, I earn my living with computers and have been known to do consulting in that field for money. But if I post some computer advice here that isn't per se a commercial posting... is it? If it is, what would we do about all the people on the board (like Alex, Ben Fuller and your own lovely wife) who earn all or part of their living in -- heaven forbid -- kayaking itself!

If that is not a joke, or because you did not clearly label it a joke, Ernie (or anyone in similar circumstances) feels discouraged from contributing their knowledge via this forum, that would be a tragedy.

--David.

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>On the surface, it

>simply looks like Subaru pays $150 if you buy a car in the

>program in exchange for information about you as a customer

>(generealities of course pertaining to who might belong to

>the ACA). Subaru also gets free advertising and referral to

>its dealerships. Not a bad deal for them at all....

Yeah... that's what I meant by "cross-promotion." The ACA also gains because it makes them look like they are giving a good deal for the membership fee.

But judging by what happened to me, you can probably snag a good chunk of the $150 for yourself if you bargain hard -- assuming you ~don't~ go via the ACA. In fact, you might simply point out to the dealer that you are an ACA member, but refrained from going through the ACA. Tell them something like "gimme invoice minus $100 and you just made $50!" (Sorry, ACA ;-))

--David.

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I didn't mean to redirect the theme of the post. I wish it was entirely in jest.

In the past, Ernie has provided his knowledge and has been lambasted for doing so. There appears to be a particular sensitivity to this, especially lately. I consider it unfortunate that this is the case and agree that he should not be chastened by such ill intentioned responses.

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