Subaru’s Average Price Drops From Last Year When Most Brands Have Raised Them
Which car brands offer the best value for consumers? As new car inventories shrink, most car dealers are raising prices, but not Subaru. A new report from Automotive News (by subscription) reveals Subaru of America is only one of three automakers with lower average transaction prices on its new models like the 2021 Subaru Forester, Outback, and Crosstrek rather than raise prices.
The report says Subaru, Ford, and BMW have not raised prices but have lowered them from a year ago. The average transaction price from TrueCar says Ford's transaction price propped by 4.4 percent, BMW -1.7 percent, and Subaru 1.10 percent in May 2021 versus May 2020.
photo credit: Competition Subaru
Subaru's average transaction price dropped in May 2021 ($30,192) compared with $30,532 in May 2020. And it also declined compared with April 2021 ($30,381).
The report says the average transaction price for a new vehicle last month is projected to rise 3 percent to $37,584 from a year earlier and up 1 percent from April, TrueCar projects.
photo credit: Automotive News
Which automakers have raised prices the most? Kia increased prices 14.7 percent, GM 9.5 percent, Volkswagen 9.4 percent, and Stellantis 8.0 percent in May 2021 compared with May 2020.
With new car inventory shrinking, new cars are moving quickly off dealers' lots. TrueCar analyst Nick Woolard says, "Vehicles are turning quickly, almost four weeks faster than what we saw during this period in 2019. It is a seller's market, and consumers who find a vehicle they like will need to move quickly or risk losing out."
Torque News checked with the largest volume Subaru retailer in Colorado, and at the time of this report, they only have one 2021 Crosstrek model on their lot to sell. Subaru Corporation begins the model change from 2021 to the 2022 year vehicles, which could also affect inventory.
In April, Subaru shut down the plant in Gunma, Japan, where the Crosstrek is manufactured for thirteen days. The shutdown will limit new Crosstrek models arriving in June.
Customers looking for a 2021 Subaru Forester, Outback, or Crosstrek should act quickly. Supplies of the popular models could be limited this summer. The good news is, Subaru retailers are not raising prices on new models.
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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: Competition Subaru