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Subaru Forester, Wagon, SUV
#3204 of 3625 about to buy - financing question
Apr 27, 2011 (11:41 am)
I put a deposit on a 2011 Forester Premium Auto yesterday at a dealership near me in Massachusetts. Very happy with the deal I got - sent it around to other dealers that say they beat other dealers offers, and nobody wanted to touch it. The internet sales manager was great to deal with, and everyone at the dealership was pretty helpful and nice.
In going through the financing, however, something happened that I wasn't completely comfortable with, and I wanted to run something by the group to see if I was being told the complete truth. I'm planning on financing close to the whole amount, either for 60 or 72 months. The current promotional rate Subaru is offering is 2.9% for this time period. My credit isn't great, and I was planning on having my Father co-sign with me to help get the best rate (the 2.9%). The finace manager a the dealership told me that even with the cosigner, I probably wouldn't get the best rate because they would take/use some combination of our credit-worthiness. He was able to get me a rate on my own of 4.19%, and thought the best we would do with my Dad on the loat was 3.9% so he thought it wasn't worth it. My parents live in NY, and we would have had to overnight the credit application to them and have it overnighted back.
I understand his logic, and the difference between 4.19 and 3.9 is pretty marginal, and I'm fine with getting the 4.19 if the best I could do with a cosigner is 3.9. But I got the distinct feeling he just didn't want to bother with the overnighting and/or he didn't want me to get the lower rate (the 2.9%) because that's less money for the dealership/Subaru.
I guess my question is - would I really not get the 2.9% even if I had my dad as a cosigner? Does that seem correct?
I'm really interested in hearing what people think. Thanks!
#3205 of 3625 Re: about to buy - financing question [ball_breakr]
Apr 27, 2011 (2:47 pm)
It's hard to say. Your credit must not be too bad if the rate came back at 4.19 for you alone. Depending on the quality of your father's credit, he might pull you up sufficiently.
I co-signed on a car with my brother (who has very little credit history and a marginal score at best) because the dealership was looking to charge him 14.9% on a loan (this was back before the economic crash when auto loans were typically in the 6-7% range for great credit). I think he ended up going with a 7.9% offer through a credit union with me cosigning (13.9% without), but the original dealership came back with an 11% offer with me on the ticket. I told them to take a hike. We neither financed nor purchased from that dealership.
The dealer should be able to run the credit report for your father and offer a rate before issuing the loan application. Only after you have accepted a financing offer would the documentation need to be mailed out for signatures.
I purchased my last two Subaru vehicles 2,200 miles away in Seattle, and both times I financed them and left home with all paperwork completed and license plates in-hand. When I arrived at the dealer, all I needed was a key.
#3206 of 3625 Re: about to buy - financing question [ball_breakr]
Apr 27, 2011 (4:54 pm)
I thought the current offer was 1.9% (until may 2.)
It's sounding to me like the guy is trying to make up for the money he isn't making on the price of the car but maybe I'm just being cynical. I might check with one of those other dealers.
Sorry I can't really help but wanted to wish you luck.
#3207 of 3625 Re: about to buy - financing question [pip3]
Apr 27, 2011 (7:18 pm)
Thanks for your responses guys. I was surprised he didn't just run my dad's info like he did mine. Then if it came out better we would go and get the signatures etc. I'm gonna ask him to do that.
My understanding of subaru's rates is that it's 1.9% for up to 36 mos., and 2.9 beyond that.
#3208 of 3625 Re: about to buy - financing question [ball_breakr]
Apr 28, 2011 (8:54 am)
I think the average APR last time I looked it up was 5%, so it seems like he gave you a rate that was more than fair, anyway.
Plus, dad co-signs, you know you'll owe him something. Or at least he'll never let you hear the end of it. LOL
#3209 of 3625 Re: about to buy - financing question [ateixeira]
Apr 28, 2011 (9:20 am)
Capitalone.com is still offering 2.99% on new cars up to 48 or 60 months. They issue a check before you buy so you can walk into the dealer with financing
If the salesman says 2.9 only for 24 or 36 tell him you can use cap one and the manager will probably offer you the same or better.
#3210 of 3625 Re: about to buy - financing question [ateixeira]
Apr 28, 2011 (9:25 am)
The finance guy ran everything with my Dad as a co-signer and sure enough the best he could do for 72 months was 3.9% with both of us on there. So I'm just gonna do it myself, and not owe my Dad anything.
The deal I got was this:
2011 Forester Premium, Auto, with all weather package and bumper cover, luggage cover, cargo tray, and plate bracket.
MSRP, incluidng destination: $26,082
I paid $23,175 plus the dealer fee of $324.
From what I can tell the invoice is $24,675, so it seems as though I did OK.
I didn't have to do any haggling for this price. I requested quotes through edmunds.com and this was one that I got after I went back and forth with the dealer a couple times about the model I wanted. Other dealers wouldn't beat it, so I went with it.
Thanks again for your responses.
#3211 of 3625 Re: about to buy - financing question [georged4]
Apr 28, 2011 (9:44 am)
Is that for Tier I credit only, though?
You may need a credit score in the 700s to qualify.
#3212 of 3625 Re: about to buy - financing question [ateixeira]
May 05, 2011 (12:07 pm)
I was at a dealership and I overheard a couple guys talking that Subaru scaled back on production by 50% because of parts problems from the earthquake/tsunami! I'm glad I bought one when I did because I'm sure the prices will just go up now.
#3213 of 3625 Re: about to buy - financing question [jeschwartz]
May 06, 2011 (6:03 am)
Supply will be short for sure, in fact it was before the disruptions.