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Subaru Dealer Reveals Something Strange Is Happening Now

A recent interview with a Subaru dealer reveals something strange is happening at Subaru stores across the U.S. Here is what it means for customers in 2024.

Something strange is happening now at Subaru dealers across America. They have new 2024 Outback, 2024 Crosstrek, and 2024 Forester models on their lots for the first time in years. For the last three years, Subaru has had the leanest inventory levels of any automaker, but things are changing. That's good news for customers buying a new car this year. 

Here is what Jeff Williams, vice president of Williams AutoWorld in Lansing, Michigan, and chairman of the Subaru National Retailer Advisory Board, revealed to Automotive News (by subscription) in a recent interview. I will give excerpts of that interview here for customers to read what Subaru dealers think.

customer with a new 2024 Subaru Forester

Photo: Subaru Dalton 

Question: What was 2023 like for Subaru dealers?

If we look at 2023 and now into 2024, there's something very unusual for Subaru dealers: You actually have inventory on your lots. What happened?

"It's funny that you mention that. Yes, that is true. We haven't had inventory on our lots for years — and now inventory levels are still low, still minimal, and I still don't have enough to fill the front row, but the middle of the parking lot is still empty."

What's your opinion on that?

"It's great that we're turning our inventory. It keeps our inventory holding costs down, our floorplan down."

"But it is a problem with some customers who want to go on a lot, they want to see some availability, they want to see an option, they want to see colors. They sometimes want to come in and drive different models when we might only have two models in stock. And, of course, whatever two models we have, they want to look at something else. Unfortunately, it just is what it is. And the color — you know, people like to look at colors. And that's a problem for some when you don't have inventory to show color."

customer looking at a new 2024 Subaru Outback in the showroom

Photo: Adventure Subaru

Subaru has had a lean inventory for many years. How has it altered how Subaru dealers meet customer demand compared with other brands?

"There's some dealer trading going on, but trading overall is down, substantially down. It's more a case of selling what's available. And because the inventories are low, we've done a better job of selling into the pipeline — down the road 30, 60 even 90 days, and our customers are more willing to wait, where the past customers have not been willing to wait."

"They're like, "My lease is up in two weeks, so I need a car next week." But leasing has become so popular that customers now have conditioned themselves. Years ago, it would always be, "My lease is up tomorrow; what do you have?" 

customer with their new 2024 Subaru Crosstrek

Photo: Adventure Subaru

"Now, they're coming in three, four months earlier, and we're doing a better job as retailers servicing the customer, telling them when their lease is coming up and inviting them to go over their options well in advance so they're not without a vehicle. Ten years ago, managing that was the exception, not the rule that it is today. So it's nice that customers are doing that and helping us plan a little better."

"It's always nice to have sales in your pipeline, where you're selling 30 to 50 percent of your pipeline, and we've had some cases where up to 60 or 70 percent of our pipeline was sold. For dealers, that's candy in the stocking, so to speak."

Have you had to retrain your sales staff on how to sell vehicles on the lot?

"Now, we're going back into the normal years, the normal chaos of the car business…The sales follow-up has always been important, but what would happen if a customer came in and didn't buy? Then that car tomorrow would be gone. There were five buyers for every car. You had more buyers than cars, and now it's changing the other way." 

How so?

"Customers today are very well informed because of the Internet, sometimes more so than the salespeople, if they're new. I tell people just to be honest. If you don't know the answer to a question, tell the customer you don't know but that you'll get the answer for them. The worst thing you can do is lose your credibility. You can't lose your credibility when talking to customers these days."

A row of 2024 Subaru Crosstrek models on dealer's lot

Photo: Adventure Subaru

My Take

The new car and used car landscape is changing quickly. If you go into a dealer and they don't give you what you want, find another Subaru dealer. New Subaru models are arriving daily, improving inventory is good for customers. However, you may not see the exact color or trim level you want. 

Go to the dealer three to four months in advance, with knowledge about what model you want. I will give you information on every Subaru model that will help your new vehicle search. Order the exact model, trim it with your desired features, and wait for Subaru to build it to your specifications. 

Thanks for reading, everyone. I hope you enjoyed this Subaru dealer interview story. See you tomorrow for my latest Subaru Report.

For additional articles related to new Subaru models, here are a few of my top stories you may enjoy. 

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Watch Subaru is about to increase prices YouTube video 

I am Denis Flierl, a 12-year Torque News senior writer with 20+ years of Subaru and automotive journalism experience. I enjoy bringing you, the Subaru fans and customers, the most up-to-date Subaru news, reviews, and new model information. You'll find the latest Subaru stories on the Subaru page. Follow me on my The Dirty Subaru website, Dirty Subaru blog, SubaruReport, All Subaru, WRXSTI, @DenisFlierl, Facebook, and Instagram.

I’ve got you covered! - I cover all Subaru all the time - It’s called the “Subaru Report.” Check back daily for my expert Subaru analysis!

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photo credit: main image Tucson Subaru

Comments

Jim Drover (not verified)    January 25, 2024 - 2:51PM

Toyota dealers are worse and have had no cars available in Canada . And a year wait to order and buy some hybrid models.

Bruce (not verified)    January 25, 2024 - 6:15PM

I have problems with my subaru forester 2023, drivers monitoring system keeps dropping off. Any tips to fix it
Thanks

Rick (not verified)    January 27, 2024 - 12:24AM

After watching this video I'm not sure I'm ever gonna be able to buy a subaru. Was thinking forester,but these are all so expensive! ANd how can 1 year model year older yet new,be only 600.00 cheaper? Thats nuts!! I want a good awd, which I hear subaru is,but not looking good for me. Also willing to look at Honda crv as well. What's best time of year to get the best deal I can? I was thinking March and end of month.

Alex (not verified)    January 27, 2024 - 8:35AM

In reply to by Rick (not verified)

Hello Rick, i understand your concerns and unfortunately while prices may be a little higher than we would all prefer, theres many Great reasons behind that such as; Subarus have an amazing safety rating, an amazing awd system, and in my opinion a better accident prevention system than what is available from many other retailers. We bought our 2023 forester in the summer and could not be happier! We took it 7 hours into northern wisconsin and it did great in the snow even with a few inclined areas! As somebody that has worked on subarus of all types, this brand definitely has quality and customer experience in mind! I wish you the best of luck on your vehicle search Rick! Though you should know, our one and only regret with buying our subaru, is that we did not opt for the heated steering wheel!!
As advice to dealers, have some color swatches! - Maybe a line-up of fuel-doors in all offered colors

Shelby Hodge (not verified)    January 29, 2024 - 12:36PM

In reply to by Rick (not verified)

I bought a new 2024 Subaru Outback October of 2023. Yes it was a little expensive, but I truly love my new Outback. I don't know if it was just dumb luck or what, but they had my second choice of color in the package I wanted ( I was dead set on the Onyx package). My salesman was kind and professional, never pushy or anything. Not sure if I just found the right time to look or what. I couldn't imagine a different vehicle for my family.

Bill H (not verified)    January 27, 2024 - 9:50AM

My experience dealing with Subaru dealers during last year’s tight availability was that they treated potential customers like crap.

I was disappointed in two different dealers that I went to a different car brand and never looked back.

Maybe that is why they are making the dealers jump through hoops now. Revenge is sweet.