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According to a report by ALG, the auto industry benchmark for determining the average transaction price and incentives per unit spending for automakers says Subaru is spending more and prices are going up. The recent report shows even though Subaru of America spends less on incentives to sell their all-wheel-drive Outback, Forester and Crosstrek models, than other automakers, the average transaction price is up.
Subaru spends $1,583 per vehicle, an increase of 44 percent from a year earlier. The average transaction price for a Subaru is now $28,605, up 3.2 percent from a year earlier, according to ALG.
“ATP (Average Transaction Price) is growing in pure dollar terms at a higher rate than incentive spending; however, incentive spending as a percentage of ATP is increasing as automakers chase share in a resilient high sales environment," said Eric Lyman, ALG's chief industry analyst.
Competition is getting hotter
Subaru CEO Yasuyuki Yoshinaga said competition is getting hotter than expected in the small crossover segment, where, they produce the Outback SUV/Crossover, Forester SUV and Crosstrek crossover models. "The market is moving in the direction we anticipated," he said. "But we didn't expect there to be so many models as now, so the competition is heating up. Looking ahead, the situation will become tougher.”
Even with prices going up, Subaru ranks highest in ALGs latest Residual Value Awards 2018. The Japanese automaker scores the top three vehicles in their lineup which are predicted to hold their value better than other vehicles in their class. The 2018 Subaru Outback is Best Midsize Utility Vehicle 2 Row, Subaru Forester is Best Compact Utility Vehicle, and the 2018 Subaru Crosstrek is Best Subcompact Utility Vehicle in ALG’s recent value awards.
This tells consumers, even though you are paying more, Subaru’s overall vehicle lineup will incur less depreciation than any other mainstream brands cars. Subaru’s stable of all-wheel-drive vehicles are gaining popularity with a new-generation of urban-adventurers who use the vehicles for weekend excursions to the mountains for hiking, biking, fishing, camping, and skiing. As competition grows in the small crossover segment, the 2018 Subaru Outback, Forester and Crosstrek’s price is higher than a year ago, but the resale value will stay particularly high when you sell.
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Photo credit: Fox Subaru
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