Pricing can get a bit tricky.
By David Enna, Tipswatch.com
In 2026, for the first time, I will be forced by law to take a Required Minimum Distribution from my traditional IRA. That’s bad news, but the good news is: I can buy a new car!
This has been my long-time plan, to replace my 10-year old Honda HR-V with a new car in January 2026. Do I really need a new car? No. The Honda has been flawless over a decade of driving and will last many more years. So I am selling it to my niece, who will enjoy it greatly.
After lots of research (reading one issue of Consumer Reports) I decided my car of choice was a Subaru Crosstrek Limited, specifically the one with heated leather seats, a moonroof, upgraded Harmon Kardon sound system and loads of driving safety features. Plus, my preferred color was stealthy Magnetite Gray Metallic.
Crosstrek? It’s Subaru’s best-selling model, and in this Limited configuration it compares favorably with more expensive small SUVs, like the Lexus UX. And it is highly reliable. From Consumer Reports:
I was hoping to buy an end-of-the-year 2025 to avoid price increases that seemed likely for the 2026 models. But I was willing to buy a 2026, if necessary. This ended up being a tricky decision, which caused me to buy in late November instead of January.
The effect of tariffs
After “Liberation Day” on April 2, I began tracking sticker prices for the Crosstrek Limited to see how tariffs could effect the purchase price. The current U.S. tariff on Japanese car imports is 15%, but this Limited model is assembled in Lafayette, Indiana, so the effect of tariffs could be somewhat muted. Here is a sticker price comparison, May to November 2025:
These two cars are identically equipped. The November 2025 version ends up with a Manufacturer’s Suggested Retail Price of $36,723, an increase of 1.9% over the May sticker price. Conclusion: Tariffs alone did not have a major effect on prices for this model of Subaru in 2025.
2026 pricing gets tricky
If I couldn’t find a 2025 Crosstrek I liked, I was willing to purchase a 2026 Limited. But for the 2026 model year, Subaru introduced a hybrid version of the car, and it was the only Limited version with options for a moonroof and upgraded sound system. The “base” 2026 Limited — the top-of-line trim — had no version with a moonroof. Huh? Even more aggravating was that the mid-level Premium trim still had a moonroof option.
So in theory, Subaru cut the price of the non-hybrid 2026 Limited. But in reality, it was a price increase. If you added in the cost of the unavailable moonroof and upgraded sound system, the sticker price would increase from $35,830 to $37,625, about 2.5%.
Moving up to the 2026 hybrid Limited with a moonroof and similar equipment (except now with “vegan” leather seats!) would increase the sticker price to around $39,000, and these models were unlikely to be discounted. And because I don’t drive many miles a year, a hybrid model didn’t make economic sense.
So my decision was made: I was going after a 2025 Limited with moonroof and upgraded sound and in Magnetite Gray. I hoped to pay about $34,000.
My ‘out-the-door’ price
While still traveling in Japan, I was communicating with two dealers in Charlotte with a total of four gray 2025 Crosstrek Limiteds in stock. I was asking for an “out-the-door” price. In this Internet age, getting detailed price information out of dealers is somewhat easier, but still a time-consuming game of cat-and-mouse.
And, of course, MSRP is a “pseudo price” that might or might not end up being discounted before the final sale. Plus, in Charlotte, every single car dealer adds a “processing/document fee” of $798, which is in effect the dealer’s base profit margin. And in North Carolina, you can’t avoid the 3% sales tax on a new-car purchase.
Eventually, one dealer came through with a true out-the-door price. This is what my bottom line looked like:
After a grueling 30-hour travel day back from Japan, I checked the dealer inventories and only two of my preferred color Limiteds were still available. So I called the dealer who gave me an accurate price and said I would buy the car on Friday. And I did, at the price listed above.
Did I get the best possible price? Probably not. But as of today, 10 days later, there are no longer any gray 2025 Crosstrek Limiteds available in Charlotte, and only three of any color.
The point is: I got what I wanted to “celebrate” my new era of Required Minimum Distributions.
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David Enna is a financial journalist, not a financial adviser. He is not selling or profiting from any investment discussed. I Bonds and TIPS are not “get rich” investments; they are best used for capital preservation and inflation protection. They can be purchased through the Treasury or other providers without fees, commissions or carrying charges. Please do your own research before investing.
