Subaru extended warranty prices rise from August
If you are planning to purchase a new Subaru vehicle and are considering an extended warranty, you should prepare for significant costs. According to a dealer bulletin, the Subaru Added Security program will become more expensive starting August 1.
The company explains this with two main factors. Firstly, it is due to “significantly higher labor and parts costs.” Secondly, many U.S. states have requirements for repair claim compensation that exceed Subaru’s standard norms. This forces the manufacturer to raise prices to maintain financial balance.
Two warranty plans and their changes
There are two warranty options: the Classic Plan and the Gold Plus Plan. The first covers the engine, transmission, and all-wheel drive system for terms from 7 years / 112,000 km to 10 years / 160,000 km. Gold Plus expands coverage to brakes, electrical systems, suspension, air conditioning, and steering, reports CarsDirect.
Which models are affected the most
The cost depends on the vehicle model. From August 1, for the BRZ, Impreza, Forester, and Outback, the increase will be at least $88, which averages 8.3% more. For the Uncharted, Solterra, and Trailseeker models, the price will rise by 9.3% ($50). The biggest price hike awaits owners of the Ascent, WRX, Crosstrek Hybrid, and Forester Hybrid — by 16% or $182.
In an era when the average price of a new car in the USA approaches $50,000, any additional increase in the cost of ownership can reduce sales or hit family budgets. Moreover, the price increase may push more buyers toward choosing used cars. However, even used car prices remain higher than before, partly due to the COVID-19 pandemic, which limited global production, and the semiconductor shortage, which further tightened supply.
It is worth noting that even after the increase, the warranty term remains up to 10 years or 160,000 km of mileage. However, this decision by Subaru could be an additional argument for those torn between a new and a used car, especially against the backdrop of overall rising car market prices. An increase in warranty cost of $182 for some models may seem insignificant compared to the total price of the car, but combined with other expenses, it creates additional financial pressure on buyers. For the market, this is a signal that manufacturers are passing on rising operational costs to consumers, which could affect the demand structure in the coming months.