Hi Guys,

Has anyone else had Subaru replace or buyback their vehicle due to lemon issues? Mine is a long story, but basically my transmission has been worked on twice at the dealership where I bought the car, the first time it was in for 2 1/2 weeks to have a synchro replaced. A couple months later something else failed, probably the front differential and it went back in. They are repairing it again, but as of today my car has been there for another 4 1/2 weeks, so my car has now been out of service for about 7 weeks. It is a 2005 WRX that I purchased new in Nov 2004. There's a lot more to the story, it's been a nightmare but my question is about getting the vehicle replaced.

My case was forwarded to SOA, who to their credit contacted me immediately and apologized for all the grief. They asked how they could make up for it, and I said I'd like a replacement car which they agreed to.

So now I will be getting a new 2006, which of course I'm very happy about. But it's not all great, since it sounds like they will take ownership of my old car and pay off the loan, then sell me the new one for the same amount I currently owe under a new loan contract. Unfortunately this means I will probably have to take a higher interest rate, so more money out of my pocket. Will they charge me sales tax/license/delivery again?

While I am very happy that SOA is willing to replace the car, I am a little concerned that it's going to cost me additional $$$.

Has anyone else gone through this? What can I expect?

I was also offered a brand new transmission and extended warranty for my 2005, but I'd rather go for the upgraded 2006. What do you guys think?

First, find out weather or not it actually meets lemon-law criteria yet...don't assume that because they are willing to replace the car that it is because they legally have to yet (although likely). Then, look into the lemon-law...and find out what Subaru is obligated to do. It would be my assumption that they have to get you a new car with no cost to you. Even if they were not obligated by law, it would be horrible customer service to make you pay tax twice and/or a higher interest rate.

Basically, they need to adjust the price of the vehicle such that you have no costs. I would consider the fact that I was getting the better '06 model as compensation for my trouble. If you were just getting a new '05, I'd expect more than just a new car...free options, etc. Another thing to consider, a "Free Extended Warranty" is worthless to you if you plan on modding.

Disclaimer...I am not a lawyer or a legal expert of any sort. This is merely advice...use at your own risk.

talk to a lawyer

First, find out weather or not it actually meets lemon-law criteria yet...don't assume that because they are willing to replace the car that it is because they legally have to yet (although likely). Then, look into the lemon-law...and find out what Subaru is obligated to do. It would be my assumption that they have to get you a new car with no cost to you. Even if they were not obligated by law, it would be horrible customer service to make you pay tax twice and/or a higher interest rate.

Basically, they need to adjust the price of the vehicle such that you have no costs. I would consider the fact that I was getting the better '06 model as compensation for my trouble. If you were just getting a new '05, I'd expect more than just a new car...free options, etc. Another thing to consider, a "Free Extended Warranty" is worthless to you if you plan on modding.

Disclaimer...I am not a lawyer or a legal expert of any sort. This is merely advice...use at your own risk.


The car has been out of service for more than 30 days.

In Michigan it would qualify as a lemon.


Too bad this had to happen, somebody at the dealer dropped the ball.

Anyway, take the 06 and enjoy it, they are greatly improved over the 05 models.

talk to a lawyer


Best thing to do is to talk to SOA first and find out from them if he is respnsible for any fees. Then talk to a lwayer if he feels he needs to.

Thanks for the replies, guys. So far SOA has confirmed that I will have to pay a higher interest rate, since "they are set by the finance company and beyond our control". I originally got in at 3.9% but now it could be as high as 5.9% which amounts to a significant chunk of change.

I don't know about the tax/license/delivery yet, hopefully I will not be responsible for these.

A quick internet search tells me that according to California's Lemon Law, a car is considered a lemon after a reasonable number of repair attempts or it has been out of service for more than thirty days. So I think it would qualify as a lemon, but I really don't want to go the legal route.

I don't know about the tax/license/delivery yet, hopefully I will not be responsible for these.

... So I think it would qualify as a lemon, but I really don't want to go the legal route.It's pretty simple. Either you initiate the lemon law process, where everything is spelled out as far as what Subaru will pay if you win, or you negotiate with Subaru about who pays for what. Apparently, you've elected the latter route, so only Subaru can tell you exactly what they'll pay.

http://ag.ca.gov/consumers/general/lemon.htm
http://www.dca.ca.gov/acp/pdf_files/lemonaid2005.pdf

More and more manufacturers are doing buybacks before lemon law claims to avoid blemished titles. It allows them to wash the cars through the auctions after repairs :eek:

talk to a lawyer


Yeah, because lawyers are cheap. You could probably find one that costs $300 an hour. And when you ask Subaru to reimburse you for legal fees and they laugh, you can hire another lawyer to try to get reimbursement.
Sounds like they made a very decent offer. If, in fact you are charged a higher rate, you might be able to get an extended warranty as a compromise. What's your current rate? Also, don't forget that you will be getting a new 2006 vehicle, not a new 2005 one. It would have a greater resale value than a 2005.

he said 3.9% i believe

i would take the 06 as teh new tranny might just bring up more problems,

but i would check on the exact interest rates you would get afterwards and see if you could work something out with soa where they compenstate for the increased costs

Thanks everyone for the replies!

In case anyone was wondering how this turned out, well I have to admit SOA REALLY stepped up to the plate for me. They bought back my 2005 and paid off the loan, then basically sold me a new 2006 for the same amount I owed INCLUDING tax, license and everything. Not only that, since my car was in the shop a week longer than expected (7 1/2 weeks total) causing a major inconvenience for me when I needed to go out of town, they upgraded my new car with the Limited package. They also ordered the new car with all the same Subaru accessories as my old one, including those that I added after the original purchase. :D

I did have to take a 4.9% finance rate on the new loan, instead of the 3.9% I had originally, but hey I ain't complaining...

I was originally told the car would take 60 days to arrive but it only took about 37. I picked it up on Friday and WOW it is sweet! Huge improvement over the 2005 in pretty much all areas, and the Limited package is awesome.

Unfortunately someone in a parking lot scratched the bumper the day after I picked it up, but that story's for another thread.

All in all I can't say enough good things about Subaru's customer service. :)

GTZ man, that so sweet that they stepped up to the plate like that and I bet you are WAY more satisfied with that car than the '05, especially since it is band new!!

That's a rad story. Too bad nothing like this could ever happen to me, since I'm at 64xxx miles on my 02, and well out of waranty range. But I'm stoked for you.

I'm glad everything worked out for you Bro! Take pics!