I am buying a used car for my wife, and am wondering why the SUBARU forester prices are only about 10%+ below the retail prices for brand new 2010 foresters? In other words, what is the deal with these used cars being so expensive? I have not looked at a used car in a LONG time, but I was under the impression that once a car is used, it loses A LOT of its value. These 2009 foresters are rental cars that have 15k-30k miles on them. Shouldn’t the prices be 20%-30% below the new retail prices?
I think it has to do with the popularity of the vehicle. Subarus tend to hold there resale value and the Forester is a popular car. I would seriously think about purchasing a used car (especially a rental vehicle) just to get a price reduction of 10 percent. I would rather pay the extra money for a new one. With the good deals going on out there, some with free financing, it is hard to beat. Have you compared financing costs of used over a factory financed new car loan? It may pay for most of the difference in costs. Currently, Subaru has 2.9% financing available to well qualified customers.
Yes, supply and demand. Around here used late-model Foresters are very hard to find, so the prices are like what you found.
Thank you very much for the information. That was a big help. From my limited research, you are correct that Subaru’s tend to hold their resale value.
From the website of Automotive Lease Guide:
[i][b]Santa Barbara, CA, December 2, 2009 ?ALG, a subsidiary of DealerTrack Holdings, Inc. (Nasdaq: TRAK) and the industry benchmark for residual values and depreciation data, today announced its 11th annual Residual Value Awards, honoring the vehicles in each segment that are predicted to retain the highest percentage of their original price after a conventional three-year period.
This year?s awards are based on 2010 model year vehicles. For the eighth year, ALG has also included awards for the brands with the highest overall predicted resale values among all mainstream and all luxury vehicles. The awards are derived after careful study of segment competition, historical vehicle performance and industry trends. The list of winners can be found on www.alg.com.
Subaru of America has won the Mainstream Brand Residual Value Award for the first time, jumping over perennially strong Honda. Subaru also received individual segment awards for the Forester in the Compact Utility Vehicle category and the Outback in the Midsize Utility Vehicle category.
?Subaru combines distinct product attributes, such as standard all-wheel drive and the wide use of turbo charged boxer engines, with a rugged but practical brand positioning to generate fierce loyalty among its buyers,? said James Clark, General Manager of ALG. ?Subaru also has been restrained with incentives over the past year, and its three core models have all been recently redesigned, helping it to move from second place to first this year.? [/b][/i]
I think that this should help to answer your question.