Subaru just pulled something you almost never see in the car business. It dropped the Impreza’s base price by $1,950 while simultaneously stuffing a bigger engine under the hood.
The 2027 Impreza now starts at $25,840, making it the cheapest all-wheel-drive compact car you can buy. That price cut alone would be news. Pair it with a jump from 152 horsepower to 180, courtesy of a 2.5-liter boxer four replacing the old 2.0-liter, and you have a car that got meaningfully better while costing meaningfully less.
Last year, Subaru reserved the 2.5-liter engine for the pricier Impreza RS. Now every Impreza gets it, mated to a CVT and standard all-wheel drive. The RS trim holds steady at $30,740.
This is the opposite of what the industry has been doing for years. Most automakers have spent the post-pandemic era trimming content, killing base trims, and nudging buyers upmarket. Subaru is going the other direction, and the timing is not accidental.
The compact sedan segment is thinning out. Honda’s Civic and Toyota’s Corolla remain strong, but several competitors have either abandoned the class or priced themselves out of reach for the buyers who once defined it. Subaru appears to be making a land grab for the entry-level customer who still wants something practical, affordable, and capable in bad weather.
The base Impreza rolls on 17-inch wheels with cloth seats, dual-zone climate control, and a pair of 7.0-inch touchscreens running Apple CarPlay and Android Auto. Adaptive cruise control, lane-departure warning, and lane-keeping assist come standard. That is a solid feature set for a car under $26,000.
The RS adds 18-inch wheels, fog lights, a roof spoiler, heated front seats, an 11.6-inch touchscreen, wireless charging, and blind-spot monitoring with rear cross-traffic alert. For another $2,070, buyers can option in a power sunroof, a 10-way adjustable driver’s seat, and a Harman Kardon stereo. None of that is extravagant, but none of it feels cheap either.
Subaru has been on a quiet pricing offensive lately. The company slashed 2026 Forester prices and held the line on its EV SUV lineup. The Impreza move fits a clear pattern: Subaru is betting that value sells, especially when competitors keep creeping north of $30,000 for their base compact sedans.
A 28-horsepower bump does not transform the Impreza into a performance car. But 180 horses through all four wheels in a lightweight hatchback is perfectly adequate, and it removes what had been a legitimate knock against the base model. The old 2.0-liter felt underpowered on highway on-ramps and mountain grades. The 2.5 fixes that without adding complexity or cost.
Seven exterior colors are available, including a new Ignition Red. Citron Yellow Pearl costs an extra $395, because apparently even Subaru has to charge more for yellow.
Dealers should start receiving the 2027 Impreza by late this year. In a segment where every manufacturer claims to care about affordability, Subaru just put real money behind the words.
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