ClubWRX Forum banner

1 - 6 of 6 Posts

·
Registered
Joined
·
9 Posts
Discussion Starter #1
I'm planning on purchasing a 2012 wrx premium soon. I've have very good credit and will put down a 14k or so for the purchase. From quotes through email, I have the dealer at about $300 under invoice with additional options at invoice prices.

I'm looking to seal the deal, near the end of the month on a weekend. I've inquired about 1.9%, but currently it's available for a 48 month loan. I want to do a 60 month loan. The dealer said the rates can not be negotiated and it's 2.9% for 60 months.

Has anyone had experiences with Subaru honoring a 1.9% rate for 60 months to finalize a deal...when the current incentives are for up to 48 months. How much control do dealers have with flexing rates like this?

I'm under the impression that this is true, that the interest rates are what they are for the best credit customers. Planning on looking at a local credit union.
 

·
Registered
Joined
·
42 Posts
I am not sure how it works with their financing and the wiggle room when it comes to rates. I could be wrong but I believe if you qualify then you qualify, if you don't then you don't.

However, when I purchased my car I qualified for their best financing. Unfortunately, my monthly payments were still higher than I wanted to pay. They then went through different banks to see if I could get a lower rate, which they were able to do.

I would suggest looking and seeing if other lenders offer 1.9% and see if you can get approved through them. It might work out for you if you have solid credit like you said.

Sent from my PC36100 using Tapatalk
 

·
Master Baiter
Joined
·
22,115 Posts
My credit union has competitive rates. Negotiate the price of the vehicle, then start talking elsewhere and pay "cash" for the car when said and done.
 

·
Registered
Joined
·
12 Posts
Quick answer for you, no. I am a Finance Manager(the guy that gets the loans) and work for a couple Subaru stores. The financing company Subaru uses is Chase, and with there "promotional rates" they are what they are, that doesnt mean you cant get a lower rate though. Couple of factors here, LTV (loan to value), this should be under 80 % of the sticker out the door, credit score(optimal is 740+), and then term, which you seemed to have figured already. Buy rates have never been lower than they are now(buy rate is what the dealer gets from the bank, before they mark it up), so your dealer should be able to get you somewhere between 2.25 and 2.75 through a standard lender(think Bank of America, M&I, PNC etc). Could be lower, but shouldnt be any higher than the 2.75.
So to answer your question, can you get a lower rate for 60 months than 2.9? Yes, it is possible. Can you "negotiate" Subaru's rate? No. For anyone else reading this, another thing to watch out for is even though the dealer cant make the promo rate lower, on some of the Subaru models and terms, they can make it higher. Hopefully this answered all of your questions, any others feel free to give me a shout. :thumbup:

Just stumbled onto this site as I just traded my 2011 Civic Si in on a 2012 Subaru WRX 4dr. So far I am loving the car, it is the first Subaru I have ever owned, so we will see how it goes.

Also for the person that posted above me, even though that is a good idea, 99% of the time the dealer can beat any rate your CU gives out by minimum half of percent. FYI.
 

·
Registered
Joined
·
9 Posts
Discussion Starter #5
Rates

Quick answer for you, no. I am a Finance Manager(the guy that gets the loans) and work for a couple Subaru stores. The financing company Subaru uses is Chase, and with there "promotional rates" they are what they are, that doesnt mean you cant get a lower rate though. Couple of factors here, LTV (loan to value), this should be under 80 % of the sticker out the door, credit score(optimal is 740+), and then term, which you seemed to have figured already. Buy rates have never been lower than they are now(buy rate is what the dealer gets from the bank, before they mark it up), so your dealer should be able to get you soYmewhere between 2.25 and 2.75 through a standard lender(think Bank of America, M&I, PNC etc). Could be lower, but shouldnt be any higher than the 2.75.
So to answer your question, can you get a lower rate for 60 months than 2.9? Yes, it is possible. Can you "negotiate" Subaru's rate? No. For anyone else reading this, another thing to watch out for is even though the dealer cant make the promo rate lower, on some of the Subaru models and terms, they can make it higher. Hopefully this answered all of your questions, any others feel free to give me a shout. :thumbup:

Just stumbled onto this site as I just traded my 2011 Civic Si in on a 2012 Subaru WRX 4dr. So far I am loving the car, it is the first Subaru I have ever owned, so we will see how it goes.

Also for the person that posted above me, even though that is a good idea, 99% of the time the dealer can beat any rate your CU gives out by minimum half of percent. FYI.

Thanks for the excellent info! Is it the salesperson's job to get me the best rate or mine? Trying to understand the slaseperson's responsibilities. Thanks.
 

·
Registered
Joined
·
12 Posts
Thanks for the excellent info! Is it the salesperson's job to get me the best rate or mine? Trying to understand the slaseperson's responsibilities. Thanks.
It's hard to say since dealers vary from store to store, but a quick answer would be no. Really it is your job to make sure everything is in line with your expectations. Just follow my advice in the post above and you should be good to go. Either way, if it's 2.9 or 2.5 or 2.2, dont get too hung up on this whole deal, they are all great rates, the difference in monthly payment should be minimal. Just have fun with your experience, it's not everyday you get to go and buy one of these beautiful rides.:thumbup:
 
1 - 6 of 6 Posts
Top