What Happened To Subaru This Week While You Were In Quarantine-It's Good For SUV Shoppers
In spite of the coronavirus epidemic keeping you locked up this week, it was a busy week for Subaru who makes the 2020 Forester, Outback, Ascent, and Crosstrek SUVs. It’s not good news for Subaru, but it will benefit car shoppers. Subaru announced this week sales dropped 46.6 percent in April as COVID-19 kills sales. But it could have been worse. Both Toyota and Honda reported sales were cut in half and declined about 54 percent last month. Subaru shoppers are buying more cars online.
Subaru dealers are being creative and have had to adjust on the fly to the coronavirus epidemic that has hit car dealers hard. In a recent interview with Yahoo Finance, Tom Doll President and CEO Subaru of America, says most Subaru retailers are doing virtual sales. He says “the best thing about our retailers is, they adapt. When markets are tough, they figure out what to do in the new normal.”
Savvy shoppers are buying cars online
What Is Subaru doing for customers now?
Subaru is offering zero-percent financing on 2020 Forester, Outback, Ascent, Impreza, and Legacy models now, but Doll says don’t look for the special financing to go beyond the current 63 months they are offering customers. Doll says they look out for the customer now because they will see them in 4 or 5 years when they return to trade the vehicle in.
He says if you go beyond 63 months it’s not good for the customer. “When they return we want to make sure they have equity in their trade. We don’t want them to owe more than the car is worth, or their payments will be too high.”
What happened to Subaru this week?
New 2020 Subaru Forester, Outback, Ascent, and Crosstrek SUVs are stacking up at the port of entry. Subaru of America just signed a lease agreement with the St. Marys Airport, paying them $95,000 a month to use the 280-acre site to park 30,000 Subaru vehicles at the vacant airstrip on the east coast. Ships are offloading the vehicles arriving from Japan at the Port of Brunswick and Subaru has nowhere to put them. Dealers cannot take them because their lots are full.
What does it mean if you will be buying a new Subaru soon?
Jessica Caldwell, Edmunds’ executive director of insights says, “It’s a buyer’s market, and while there aren’t a lot of buyers right now, those in a position to purchase a new vehicle are taking advantage of the most generous financing programs we’ve seen this century.”
Beyond financing deals, a customer who just recently purchased a 2020 Subaru Outback told Torque News he received the 0.0 percent incentives, and “Separately from the dealer, Subaru sent me a rebate/discount that took an additional $1,000 off the price of the car.”
Subaru will never advertise they are giving additional rebates to customers. If you are shopping for a new 2020 Subaru Forester, Outback, Ascent, Crosstrek, or other models, you should be able to negotiate a very good deal now. Subaru of America is motivated to move its backload of stored cars, and its retailers are motivated to move new cars off their lots.
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Denis Flierl has invested over 30 years in the automotive industry in a variety of roles. All of his reports are archived on our Subaru page. Follow Denis on Facebook, Twitter, Instagram, Subaru Report. Check back tomorrow for more Subaru news and updates at Torque News!
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