Subaru’s Average New Car Price Vs. MSRP Ranks Higher Than 19 Car Brands

Subaru says its new car dealers should abide by the Subaru Love Promise, which says Subaru of America retailers are supposed to charge at or below the Manufacturers Suggested Retail Price (MSRP) or the sticker price attached to the vehicles' window. 

How closely are Subaru retailers in the U.S. abiding by Subaru of America's wishes? Less closely than you would think. Here is how Subaru ranks with all car brands. 

A new study from iSeeCars reveals Subaru is above the overall average.

Subaru ranks a higher Price Vs. MSRP then 19 car brands and has a lower Price Vs. MSRP the 11 car brands. The overall average price of all car brands is 7.2% above MSRP. Subaru is 7.8% above MSRP, with an average sales price of $36,227. The average Subaru MSRP is $33,615. 

iSeeCars and how they came up with the data.

iSeeCars says, "New car pricing continues to fall relative to MSRP. A year ago, the average new car was priced at $45,597, or 8.9 percent above MSRP, but today, the average new car is priced at $45,880, or 7.2 percent above MSRP." 

iSeeCars says they analyzed the pricing of over 16 million new car sales between January 2023 and January 2024 and confirmed the average new car MSRP has increased by $904 in the past year, but average dealer pricing increased by less than $300 thus the closing gap. 

Subaru ranks a lower Price Vs. MSRP then these 11 car brands

• Porsche 19.9%
• MINI 17.4%
• Genesis 13.0%
• Land Rover 12.9%
• Lexus 11.1%
• BMW 10.7%
• Mercedes-Benz 10.5%
• Lincoln 10.1%
• Audi 9.3%
• Ford 9.1%
• Toyota 8.8%
• Subaru 7.8%

Subaru ranks a higher Price Vs. MSRP then these 19 car brands

• Cadillac 7.6%
• Overall Average 7.2%
• Ram 6.8%
• Chevrolet 6.4%
• Nissan 6.2%
• Mitsubishi 6.1%
• Kia 5.8%
• GMC 5.8%
• Jeep 5.4%
• Alfa Romeo 4.9%
• Dodge 4.8%
• Hyundai 4.7%
• Mazda 4.6%
• Volvo 4.1%
• Volkswagen 4.1%
• Honda 3.6%
• Chrysler 3.4%
• Buick 3.0%
• Acura 2.5%
• Infiniti 1.8%

iSeeCars says, "When ranked by brand, luxury nameplates still pull high prices relative to MSRP. Of the 13 brands averaging better than 7.2 percent above MSRP, 10 are luxury brands. Ford, Toyota, and Subaru (mainstream brands) are also above average in price, while Volvo (a luxury brand) has fallen below the average. Buick, Acura, and Infiniti (luxury brands) are at the bottom of the list."

An Insider View, What Subaru Dealers Are Complaining About @SubaruReport @torquenewsauto photo @adventuresubaru#subaru #forester #outback #crosstrekhttps://t.co/9GmFJ7QNkN
— Denis Flierl (@DenisFlierl) February 11, 2024

MY TAKE

Three significant factors affect Subaru's higher average transaction price than the actual MSRP. 

1. It's improving, but Subaru has the tightest supply of new cars of any automaker. Subaru runs lean inventory levels to keep their resale values high. They are among the highest retained values of any automaker. 

Subaru Japan Is Sluggish, Subaru U.S. Production Is Buzzing @SubaruReport @torquenewsauto#subaru #forester #outback #crosstrek #ascenthttps://t.co/X4Xa9talVI
— Denis Flierl (@DenisFlierl) January 30, 2024

2. Subaru also has the lowest incentives (factory rebates) of any automaker. This also contributes to the higher transaction price compared with some automakers. 

3. Subaru's Forester, Crosstrek, and Outback are in high demand and among the hardest to find. Some Subaru of America retailers charge above MSRP for high-demand models like the Outback Wilderness. Customers are willing to pay more to get one.  

Thanks for reading, everyone. I hope you enjoyed the Subaru Price Vs. MSRP story. See you tomorrow for my latest Subaru Report.

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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: Timmons Subaru