Subaru is America’s hottest car company. However, even it offers very attractive deals to pull in customers, a sign that no car company is immune from the incentive wars which have swept the industry.
Subaru sales car unit sales rose 11.3% in March to 54,871 and for the first three months of the year are up 9% to 144,250. First quarter car sales industry wide rose fell 1.6% to 4,033,045. Kelley Blue Book expects Subaru’s April numbers to be as impressive as those of the first quarter
Subaru excels in the manufacturer of high gas mileage, low price, and durable cars. And, it is famed for it four-wheel drive technology which has been one of the company’s hallmarks for years. The base price of its cars runs from $18,395 for the Impreza sedan to $26,695 for its WRX sports car. Subaru has only seven basic models–the Impreza, Legacy, Crosstrek, Forester, Outback, BRZ, and WRX.
One of the most popular hooks used to draw new cars companies is 0% APR financing. Bank cars loans often carry interest rates of 3%. The car companies which offer the deals take some risk that interest rates will spike over the next several years. Subaru offers 0% financing on its 2017 Legacy, Outback, and Forester. The Impreza and Crosstrek have financing of 1.9% APR, a sign the car is selling crisply. The fast WRX sports car has a 2.9% APR offer.
Each of the offers carry standard disclaimers:
Other rates and payment terms available. Cannot be combined with any other incentive. Financing for well-qualified applicants only. Length of contract is limited. Subject to credit approval, vehicle insurance approval and vehicle availability. No down payment required. See participating retailers for details. Must take delivery from retailer stock by May 1, 2017.
Other car companies have much more aggressive offers. Incentives are near an industry wide high point, as U.S. auto sales slow after nine years of expansion. The attractiveness of Subaru’s models must not be quite enough in management’s opinion. It has been sucked into the incentive vortex