Let me start out by saying I was very skeptical about recent posts about the North Carolina dealer offering the WRX for $150 over invoice. My first impression was that it was some type of mistake/misunderstanding, or some bait and switch scam. sam_van reported that Cross Creek Subaru in Fayetteville, NC was offering the WRX for less than $200 over invoice.

My skepticism was reinforced by my visit to Performance Subaru in Chapel Hill, NC today. The salesman was unwavering and firm, but not really arrogant. They're selling at MSRP..period. Performance claims that they are the "Number 1" dealer in North Carolina, and that they had 5 WRX pre-orders. (wow) I'm not sure what criteria they used to claim #1 supremacy, but I doubt it going to be for sales. Their attitude was "take-it or leave-it, we don't care." The most powerful act that a consumer can do in this case is to just walk away.

As a Subaru dealer, "deadbolt," has been very enthusiast friendly and posts reliable info on this forum regularly. Deadbolt offered me a WRX for $1200 over invoice. Well, I thought that was in the market general ballpark ($500-$1200 over invoice).

I called Danice Langdon at Cross Creek Subaru in Fayetteville, NC today (910-864-5240). She returned my call promptly and was completely upfront with all the numbers.

I was shocked. $150 over invoice for a 2002 WRX wagon and any added options for dealer invoice.

Here are the numbers:

WRX wagon invoice- $22,048
Premium sound package- $263
Air filtration system - $46
Popular equip group5(I5F) - $144
Security system upgrade - $150
Rear bumper cover - $37
Dealer "profit"- $150

Sales price- $22,838
3%sales tax - $685.14
Doc fee/tags - $245.95

Out the door price: $23,769.09

OK, where's the hitch?? The documentation fees ($245) seem like typical dealer fluff, but it's certainly not out of line.

There is one hitch. (you didn't think it would this easy, did you?) The price structure is based on a PRE-SOLD order. Danice, the salesperson, states that you must commit to the order. The deposit is non-refundable. Why? She claims that the dealer can order as many pre-sold cars as she can sell, no matter what her allocation is. According to Danice, if a pre-sold order backs out of the deal, the dealer is penalized on its future allocation. After many years of buying new and used cars, I don't know if I've ever heard of this practice. I'm interested in other opinions.

If the price is genuine, you can't beat the deal. I specifically asked Danice if it's appropriate to publicly share this info. She doesn't have a problem with it, and welcomes anyone else's call.

Link to a copy of the sales agreement:
http://albums.photopoint.com/j/View?u=1490948&a=11375658&p=40435747&Sequence=0&res=high

Whew...long post http://www.i-club.com/ubb-files/smilies/smile.gif
Dean

Thanks Dean... http://www.i-club.com/ubb-files/smilies/smile.gif

Thanks and CONGRATS!

Chuck

Hey DeanO, that purchase order looks suspiciously like mine http://www.i-club.com/ubb-files/smilies/biggrin.gif! Congrats! If anyone wants a peek at the order I've got, I'll be more than glad to scan it...pretty much the same with a few different options (though the air filtration & security system were a must). How did you find Danice to deal with? I thought she was pretty cool--not trying a lot of wheeler-dealer stuff...though it helped that I was talking to a couple of other dealers simultaneously...

Looks to me like you have a good thing here.
The PO should be a sales contract, so there's really nothing at risk- who cares if the deposit is norefundable, since you know you want the car- if the car isn't delivered then the contract is void. I would go for it! Either the dealer hasn't clued in to WRX fever or they're really interested in high volume, low margin. $150 over invoice may still mean they get more than $150 for selling it, since there may be some factory incentives for higher volume.

Like I said in the other post, I talked with the sales manager there yesterday about this. The reason they are selling them so cheap is because they cannot guarrantee when they will get the cars. It is already too late to order for the first allocation, ordering now could get you a car as late as July. (I spoke with the Subaru rep yesterday about ordering cars at this point.) The cars for first runs have already been allocated, so no matter what they are telling you they can't change or add units to the 3 that they are getting on their allocation for the first run. Be careful guys, just a word of advice.

well the dealers in colorado don't play that game and they will actually get all pissy if you ask for anything below MSRP. you all are really lucky.

sam_van: Thanks to you, I think that I may have gotten a pretty good deal. I really appreciated you exchange of info. Danice was very pleasant, direct and up-front.

deadbolt:
Am I understanding you post correctly? As a Subaru dealer, you called another independent Subaru dealer's sales manager to find out their price practices? A bit unorthodox, in my opinion.

I understand that it is too late to get an order on the first allocation. I assume that applies to your dealership also, right? No matter, I really don't mind waiting a few months to get the right car, at the right price.

First-run allocations aside, are you implying that a presold order today at your dealership will get me the car sooner than Cross Creek Subaru? Does SOA have preferential distribution of presold orders to individual dealers?

Ultimately, are there any tangible reasons why I should buy my 2002 WRX from you for $1050 more? Don't take this as a flame. http://www.i-club.com/ubb-files/smilies/smile.gif

Dean

It's bad form to sign on a deal which stipulates a non-refundable deposit. I don't want to sound harsh but that's just silly. Any financial planner would tell you it's a Bad Idea. It's just a car, you can always get one somewhere else, and it's not worth the risk, however remote, of losing a deposit. IMHO, YMMV.
I have a PO for the first unit my dealer gets, no deposit, MSRP (just for reference).

[This message has been edited by BlownToBits (edited February 09, 2001).]

Performance Subaru is notorious for not budging on prices. I think this is ridiculous since I can drive 20 minutes and save thousands elsewhere, but apparently people in chapel hill don't mind and are willing to pay.

As a side note, a friend of mine just bought a Volvo S60. Performance(subaru/volvo combo dealership) treated them like dirt and wanted $1000 over MSRP (it's a hot selling car they say). They drove 25 miles to Raleigh and got the car for $1000 over INVOICE. FWIW. YMMV.

scot

Oh, yeah and I forgot, Performance is not the top Subaru dealer in NC. Last year they sold 216 new Subies. We did 495. Thanks a large part to I-Clubbers! Thanks guys! http://www.i-club.com/ubb-files/smilies/biggrin.gif

I called Jamie because I know him and have for some time now, we converse fairly often and I have helped him out with dealer trades more than once. WRX's are always a hot topic when I talk with someone else at another Subie dealership, and he divulged pricing and allocation numbers without my asking.

As far as orders getting to dealerships sooner than others, what I was referring to was the fact that I probably have an open car that we can have the port installed options put onto to match your specifics to the letter, versus having to wait so long somewhere.
"Ultimately, are there any tangible reasons why I should buy my 2002 WRX from you...?"

You can get the car quicker, and if you are interested in anything aftermarket, we can get it, install it, and warranty it for you the same as the factoy part it replaced (you get a 15% discount off retail on all our performance parts listed through our motorsports division.) We also have a very active motorsports program so we test and evaluate new poducts on our (or my as it were) car. Lastly, we are a Subaru dealership first and foremost, that is our specialty, (instead of having 4 or 5 brands under 1 roof so that all our people have to learn all of them) there are not many other dealerships in the state that can say that.

I know this is an old thread, but I wanted to follow up on it. I picked up my WRX Wagon this evening. No funny-business at all...everyone I dealt with was very friendly & didn't try to push any options other than the ones I wanted. Transaction did take a while...but that was only because we were BS-ing about the special salesperson trip to AZ to pre-test the WRX. The people at Cross Creek are VERY solid. Oh, and by the way, they've had a couple of orders drop-shipped to other dealerships around the country.

Thanks to sam_van, I'm also picking up my silver WRX wagon from Cross Creek Subaru on Friday. The salesperson, Danice Langdon, is very responsive. No bull. $150 over invoice.

Danice also confirmed that she could arrange a drop ship for a WRX to any Subaru dealer in the country for $150 over invoice. I can only imagine how pissed off the "over MSRP" dealers could be if you buy a WRX from Danice, and pick up the car at another dealer. Don't ask me how that works. http://www.i-club.com/ubb-files/smilies/smile.gif

(Sam, did you see my wagon while you were there? The 4 day wait is killing me!)

Dean

That is a great deal...

Mine is for 800 over invoice, but I don't have sales tax here in Oregon http://www.i-club.com/ubb-files/smilies/biggrin.gif

Works out about the same...

As for the question about them making money...

according to Edmunds, it explains dealer holdback as a % of MSRP. This fee is basically priced into the invoice of the car for like the first 90 days to cover the car sitting at the lot... From my reading, it sounds like this 2-3% of MSRP is actually profit built into the invoice price. The way the article read, if you find a car at invoice pricing that just came off the truck, the dealer is making 2-3% of MSRP on it. If that same car sits over 90 days, and you get it for invoice, the dealer breaks even...

atleast thats how I understood it...

Dean:
I didn't see yours...it must have been getting prepped! This machine is awesome...and I can actually throw a ladder in the back (as opposed to the Stealth)...875 miles before break-in is complete...

In reference to the drop shipping:
Danice said that a one of the dealerships in CA was being VERY pissy about their drop ship order being dropped there (probably a MSRP dealership). If they'd just be COMPETITIVE, they wouldn't have the problem!

Does Van Bortel have any dealer's fee? Weren't they selling for $400 over invoice? Same deal there if they don't have that fee.

[This message has been edited by lupohki (edited April 25, 2001).]

WOW!! this drop-ship thing is AWESOME! i wish i was ready to order my WRX now... i would have it shipped to this dealership here in Cleveland that is charging a $4000 "Market Adjustment." (which brings the total to ~$29k!!) i would love to waltz in there and tell 'em how much i paid. they are all ass-wipes in there, wont even let me drive one! my wife leased a New Beetle from them.

Bob

[This message has been edited by westy66 (edited April 25, 2001).]

oh well, looks like the deal is not available for us California folks (at least Bay Area).

Just spoke to Danice and she says that the dealers here are giving them a hard time with the one they already drop shipped and they can't do any more.