Video: Buying a Subaru Outback for Our New Car

Watch on YouTube: Buying a Subaru Outback for Our New Car

Matthew talking about buying our new car, a Subaru Outback. Some of our car buying strategies: we don’t tell the dealers anything and we go in with a pre-negotiated price.

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Video Transcript:

Hi! Welcome back. This is Matthew from A in Finance.

Last week we talked about settling with the insurance company for our Lexus and getting a check for the total loss. This week, I’m going to talk about buying our new car.

Well, originally, my dad didn’t want to get a new car because he wanted to wait for 2017 or 2018 to get the new Tesla Model 3 electric when it comes out. That would be his car and Natalie would use the old Lexus when she turned 16 and started driving. So my dad thought of just getting a used car for a couple of years to tie us over before he got the Tesla. But my parents talked about it and my mom said you never know when Tesla’s going to come out with that car, so we shouldn’t buy this one based on that timing. My dad agreed, so he scrapped the idea of a used car and started thinking about a new car instead.

With our other car being a sedan, we knew we wanted our second car to be like the Lexus that had some cargo space to haul stuff around when we go camping or go on weekend getaways, so we started looking for station wagons and smaller SUVs. Out of the blue, a bunch of my parents’ friends also told us to get a Subaru. So we checked out some reviews like US News & World Report, and they raved about the Subaru Outback and the Volkswagen Golf Sportwagon.

Now we had a couple of cars we wanted to check out. Before we headed to the dealer, my dad asked me, “What do we do when we talk to car dealers?” I immediately responded, “We don’t tell them anything.”

“Yup,” he said. “We don’t tell them that our car was totaled and that we have to buy a replacement as soon as possible. They’ll just use that against us. We just tell them that we’re starting to look and might buy in the next couple months. Don’t lie. Just keep it vague…. Now, we’re ready to go shopping.”

We went to test drive the Volkswagens first because the dealership is only a couple of miles away. We tested the Golf wagon and the Tiguan, the small SUV. They were both pretty nice. Natalie and I both liked the Tiguan, but my dad said that was probably too small. A few days later, we went to test drive the Subarus. We test drove the Outback and the Forester models with different engines. I personally liked the Outback a lot better than the Volkswagen. Anyways, it’s pretty fun climbing in brand new cars and test driving them.

A few days later, my mom and dad talked about the cars and which one we should get.

They quickly crossed off the Volkswagen. My mom told my dad, “I don’t want a German car. Remember our Audi? Maintenance was really expensive and it had that air conditioner problem that they could never figure. We should get a good Japanese car like our Lexus and Acura. Those are good cars and much cheaper to maintain.” That’s what my dad was thinking too so they were on the same page.

Then they considered a new Lexus RX because we had a great experience with our old one. My mom didn’t like the new styling and it looked like it didn’t have as much cargo space anymore. And my dad didn’t like the sticker shock. So they nixed the Lexus too.

Finally they started talking about the Subarus. My dad said he really liked the Outback. He told my mom that he thought we’d be really happy with the Outback. He said it rides high up like an SUV, but has much better handling than the Lexus.

Having decided on the Outback, they started talking about what options and features to get with the car. At some point in the conversation, I think it was about the smaller engine, I heard my mom telling my dad “not to be so cheap.” Ha ha. Later on my dad told me that my mom was right. If we were buying something to use just once, then we shouldn’t spend too much money on it. But we plan to own our cars forever, so we should spend more on quality and on the car we really want. Anyways, they decided to get the Limited version with the V6 engine. He said the Outback was like “stealth luxury.” It doesn’t look like it, but it has WAY more features and is so much more comfortable than our old Lexus. It has keyless start, adaptive cruise control, blind spot detection, a rearview camera, auto reverse braking, and lots more. Personally, I was sold when I saw that it came with heated back row seats. That way my dad can’t gloat about his heated front seats on cold days in December.

Before my mom went in for the final test drive, my dad said he wanted to nail down a price so we could buy it without wasting a bunch of time at the dealership. He told me car dealers try to negotiate starting with the list price. They also call it the MSRP, which is short for the Manufacturer’s Suggested Retail Price and just another name for “full price”. And my dad says you should never pay full price for a car because he says they are commodities. One Subaru Outback is the same as another Subaru Outback at another dealer, so you should always shop around.

So my dad emailed a bunch of other Subaru dealers to solicit offers for the options he wanted. He got back a bunch of really good offers. My dad liked the salesman, Chris G., at Glendale Subaru where we test drove the cars, so he wanted to give him a chance to win the business. So he called him up and Chris G. was able to match the best offer.

With the price already prearranged, my mom and dad went in for the final test drive. My mom loved the car too and they came home with it later that night. We ended up paying $2,600 less than sticker, which is a “great price” according to TrueCar.com.

Now we have a shiny new Subaru. Ahhh, I love that new car smell…and I’m going to be lovin’ the heated back row seats this winter.

Anyways, thanks for watching. Hoped you enjoyed it and learned something. Please subscribe to our A in Finance YouTube channel and like us on Facebook. And look out for another video next week. Thanks. Bye bye.

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