This Subaru Dealer Only Sells To Locals Not Buyers Willing To Pay More

Can customers get a new 2022 Outback, Crosstrek, Forester, and other new models at the Manufacturer's Suggested Retail Price (MSRP) and not pay huge dealer markups? The 2022 Outback, Crosstrek, and Forester are in high demand in the Northwest, where the all-wheel-drive vehicles are popular models. A Subaru retailer in Oregon doesn't charge customers huge markups.

There are buyers in other cities like Seattle, Washington, and other areas who can't get a new model because of the new vehicle shortages across the U.S. and in the Northwest. They are willing to pay more than the MSRP to get one.

photo credit: Capitol Subaru

A report from Automotive News (by subscription) says some Subaru retailers like Capitol Subaru in Salem, Oregon, say "no thanks" to prospective buyers from outside their primary marketing area, "even when those buyers offer wads of extra cash above sticker, which is where Capitol prices its vehicles," says Alex Casebeer, president of Capitol Auto Group.

The Subaru retailer in Salem, Oregon, lives by the Subaru Love Promise that CEO Tom Doll talked about earlier this year when some Subaru retailers were charging well over MSRP for models like the Outback Wilderness.

photo credit: Capitol Subaru

"We have to take care of our local customers first," Jeff Shutt, general sales manager at Capitol Subaru, told Automotive News. "We keep talking about the big picture because it does us no good to sell a car to somebody from Idaho," argues Casebeer. "Yes, we might make an extra $5,000 right now, but the lifetime of that customer is gone, no parts, no service, no trade, no referrals, nothing."

Shutt says he gets calls from all over the U.S. from customers looking for a specific new Subaru vehicle like the all-new Solterra EV. "We get calls repeatedly, especially on these harder-to-get vehicles, and we're getting them from everywhere because we sell at MSRP. On the Solterra, we got a call from Washington, D.C., and we are getting calls, emails, and leads from all over the country."

The Oregon Subaru retailer says it's tempting to sell over MSRP when buyers outside his selling area will pay well over MSRP for some Subaru vehicles.

"We could be selling a lot of different ways and charging way more money than we are, but we have to take care of our backyard. People will remember how they're being treated right now, and they will remember that when they buy their next car."

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Denis Flierl has invested over 30 years in the automotive industry in a consulting role working with every major car brand. He is an accredited member of the Rocky Mountain Automotive Press. Check out Subaru Report where he covers all of the Japanese automaker's models. More stories can be found on the Torque News Subaru page. Follow Denis on Facebook, Twitter, and Instagram.

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Photo credit: Capitol Subaru