Getting more power usually means paying more money, but somehow, Subaru has managed to reverse that equation with its 2027 Impreza.
The entry-level Impreza now packs a 180-horsepower 2.5-liter Boxer engine, replacing the 152-horsepower 2.0-liter found in last year’s cheapest Impreza. That’s an increase of 28 horsepower, or roughly 18 percent.
Subaru has also simplified the lineup, dropping the Sport and introducing a new base trim beneath the returning RS. Every Impreza now gets the larger 2.5-liter engine as standard.
The biggest surprise is the price. The new base model starts at $24,595 before destination charges, a full $2,000 below the 2026 Impreza’s entry price and enough for Subaru to call it America’s most affordable all-wheel-drive compact car.
More Power Comes Standard
Both versions of the 2027 Impreza use the naturally aspirated 2.5-liter flat-four producing 180 horsepower. It’s paired exclusively with Subaru’s Lineartronic CVT and standard Symmetrical All-Wheel Drive.
Paddle shifters and an eight-speed manual mode are standard across the range, as is dual-mode SI-Drive with Intelligent and Sport settings. Subaru has also made small cabin improvements, including revised door-panel materials and updated stitching around the center console.
The base car rides on dark gray 17-inch wheels and comes with dual-zone climate control, keyless entry, and push-button start. Its dual 7.0-inch touchscreen setup supports wired Apple CarPlay and Android Auto.
The RS Sticks Around
The sportier Impreza RS returns with the same $29,495 MSRP as last year. Add Subaru’s $1,245 destination charge, and you’re looking at $30,740, while the base model comes to $25,840.
The RS gets 18-inch wheels, fog lights, heated front seats, black RS upholstery, and a black roof spoiler. It also upgrades to Subaru’s 11.6-inch infotainment display with wireless Apple CarPlay and Android Auto.
An optional $2,070 package adds a Harman Kardon 10-speaker audio system, power moonroof and 10-way power-adjustable driver’s seat. Ignition Red also joins the color palette for 2027, while Citron Yellow Pearl costs an additional $395.
Cheaper Without Cutting Power
Affordable new cars have become increasingly difficult to find, especially if all-wheel drive is a requirement. Subaru’s decision to cut the Impreza’s entry price while simultaneously giving it the stronger engine therefore makes the 2027 model unusual.
It also means buyers no longer need to step up to the RS simply to get the 2.5-liter Boxer. The RS still brings plenty of desirable equipment, but the cheapest Impreza now gets exactly the same 180 horsepower.
The 2027 Subaru Impreza will continue to be built in Gunma, Japan, with the first cars expected to reach U.S. dealerships in late 2026.