topic Re: Subaru Legacy in Auto Loans

Subaru Legacy

Anonymous — Thu, 21 Feb 2013 07:44:20 GMT

I am looking to replace my beat up high mileage 2009 impreza.

I am being offered a new 2012 Legacy 3.6r limited w/moonroof for $25k with 0% for 36 months. That price includes a few extra's like floor mats, a car cover, splash guards, fancy mirror, & a bumper protector. Plus they are giving me about $1,500 more than I honestly think my car is worth.

I have never before gotten an auto loan, nor purchased a new car. This deal seems pretty decent. Seems like the pricing of new cars has come down and the pricing of used cars has gone up. To me in this case it seems like a better deal to buy new rather than slightly used. What I am paying is about what the car books at 2 years from now.

Anyone familiar with this car?

What do you all think of this deal? Any thoughts?

If I decide to go with this purchase, I will make it part of the deal that if the 0% falls through. I want an additional $1,000 off the purchase price. Then I will go with USAA at 1.99%.

Re: Subaru Legacy

Anonymous — Thu, 21 Feb 2013 07:14:03 GMT

Thought's anyone?

I could use some input here,

Thanks

Re: Subaru Legacy

Anonymous — Thu, 21 Feb 2013 07:34:15 GMT

What's sticker on the vehicle?

Re: Subaru Legacy

Anonymous — Thu, 21 Feb 2013 07:43:03 GMT

@Anonymous wrote:
What's sticker on the vehicle?

$31,000 MSRP

$29,000 Invoice

Holdbacks are $600.

Re: Subaru Legacy

Anonymous — Thu, 21 Feb 2013 07:52:26 GMT

It gets good reliability ratings. It's a 2012, so you'll need to figure the off-year hit to book, but it sounds like a good deal to me. The payment will be steep on a 3 year deal though. $25k @ 0 for 36 falls into the nearly $700 per month range (about $694)

Re: Subaru Legacy

Anonymous — Thu, 21 Feb 2013 08:01:03 GMT

@Anonymous wrote:
@Anonymous gets good reliability ratings. It's a 2012, so you'll need to figure the off-year hit to book, but it sounds like a good deal to me. The payment will be steep on a 3 year deal though. $25k @ 0 for 36 falls into the nearly $700 per month range (about $694)

Yeah, that payment is high

Atleast it will get the car paid off quick and I will always have equity.

I plan on putting $3,000 down, because that is the max they will let me put on a credit card. Then I will take a check for my trade and put it in the bank (why not with a 0% loan). That will also give me a nice car emergency fund if there is a time that the $700 payment becomes a problem.

Re: Subaru Legacy

Anonymous — Thu, 21 Feb 2013 08:03:35 GMT

@Anonymous wrote:
@Anonymous gets good reliability ratings. It's a 2012, so you'll need to figure the off-year hit to book, but it sounds like a good deal to me. The payment will be steep on a 3 year deal though. $25k @ 0 for 36 falls into the nearly $700 per month range (about $694)

I could get the current model year for about 2 or 3k more, but I drive more than average. So, starting one year older will keep my mileage more in line with where it should be.

Re: Subaru Legacy

Anonymous — Thu, 21 Feb 2013 08:11:40 GMT

Why would you carry a down-payment for a 0% deal on an interest bearing line? You're effectively converting part of a 0% deal to an interet bearing deal at whatever rate the card caries.

They also shouldn't be cutting you a check for the trade-in. They should be applying it to the deal at the agreed upon price.

At 0%, do the deal with the absolute minimum downpayment that the buyer will take to float the deal. $0 would be preferable.

In other words, apply the trade allowance to the deal. It will reduce the payment. Tell F&I you want a $0 down deal. If SF goes for it, they are carrying the balance instead of you. If they want a down-payment to work the deal, then offer the minimum that they will accept. It will save you from paying interest to some other lender on the funds you acquire for the down-payment.

Re: Subaru Legacy

Anonymous — Thu, 21 Feb 2013 08:11:29 GMT

@Anonymous wrote:
Why would you carry a down-payment for a 0% deal on an interest bearing line? You're effectively converting part of a 0% deal to an interet bearing deal at whatever rate the card caries.

They also shouldn't be cutting you a check for the trade-in. They should be applying it to the deal at the agreed upon price.

At 0%, do the deal with the absolute minimum downpayment that the buyer will take to float the deal. $0 would be preferable.

I will not carry the CC balance. I will PIF and get some rewards out of it. The $3,000 down covers the taxes and fee's. I would rather not finance them and instead earn some rewards.

Most dealers will cut a check for the trade if you don't owe anything on it. They will apply it to the loan if I want them too, but I would rather earn interest on the money for now.

I would do $7500 down for the 1.99% loan, but I agree about the minimum down on a 0% deal. As long as I never get way upsidedown on the loan. Don't want huge backwards equity just in case I get into a tough spot and need to sell.

Re: Subaru Legacy

Anonymous — Thu, 21 Feb 2013 08:14:06 GMT

Thank you again for your input. Great having somebody to bounces ideas off of.

What kind of car's do you like buying?

I am a fan of AWD. Been looking mostly at Audi's, Infiniti's, Lancer's, and Subaru's. Also, some Acura's and BMW's.

Re: Subaru Legacy

Anonymous — Thu, 21 Feb 2013 08:14:56 GMT

Ah,ok then. That makes sense. As long as it's effectively cash funding that you would be paying anyway, might as well get some rewards on it.

At $700 a month going straight to principal, you will never be upside down on this paper.

Re: Subaru Legacy

Anonymous — Thu, 21 Feb 2013 08:18:17 GMT

@Anonymous wrote:
Thank you again for your input. Great having somebody to bounces ideas off of.

What kind of car's do you like buying?

I am a fan of AWD. Been looking mostly at Audi's, Infiniti's, Lancer's, and Subaru's. Also, some Acura's and BMW's.

Dyed in the wool BMW devotee. I traded a 2008 535xi in December for a new 750iL. As far as I'm concerned, there is no other car on the market. I love them.

Re: Subaru Legacy

Anonymous — Thu, 21 Feb 2013 08:22:12 GMT

I was looking into an AWD 328i. Nice car, but the price is high and depreciation sets in quick. Much better fuel mileage than the Subaru, yet still makes good power. Would be nice, but runs about $10k higher.

Re: Subaru Legacy

Anonymous — Thu, 21 Feb 2013 08:23:53 GMT

Bet that 7 series is comfy.

Re: Subaru Legacy

Anonymous — Thu, 21 Feb 2013 08:25:55 GMT

@Anonymous wrote:
I was looking into an AWD 328i. Nice car, but the price is high and depreciation sets in quick. Much better fuel mileage than the Subaru, yet still makes good power. Would be nice, but runs about $10k higher.

Yea, they do depreciate more quickly than I would like, but part of my compensation package is a car allowance, so the firm is bearing the bulk of the cost for the car. What I personally have in the vehicle I more than recoup at trade.

Re: Subaru Legacy

Anonymous — Thu, 21 Feb 2013 08:29:24 GMT

@Anonymous wrote:
Bet that 7 series is comfy.

Like a rolling cloud (albeit a 445hp rolling cloud). I sprang for the Bang & Olufsen setup this time around, and it honestly sounds better than my home stereo does. Say whatever you like about humorless Germans, and I could say plenty, but they flat out know how to build cars.

Re: Subaru Legacy

Anonymous — Thu, 21 Feb 2013 08:32:31 GMT

@Anonymous wrote:
@Anonymous wrote:
I was looking into an AWD 328i. Nice car, but the price is high and depreciation sets in quick. Much better fuel mileage than the Subaru, yet still makes good power. Would be nice, but runs about $10k higher.
Yea, they do depreciate more quickly than I would like, but part of my compensation package is a car allowance, so the firm is bearing the bulk of the cost for the car. What I personally have in the vehicle I more than recoup at trade.

Even if the firm wasn't reimbursing for the vehicle, sometimes it is worth it if you really enjoy the car.

My work provides a few hundred per month for the vehicle, not quite enough to get into a luxury car. I also don't make real good money. Even spending $25k is a bit much. I was thinking about spending less, but I don't want to hate the car.

Re: Subaru Legacy

Anonymous — Thu, 21 Feb 2013 08:36:14 GMT

@Anonymous wrote:
@Anonymous wrote:
Bet that 7 series is comfy.
Like a rolling cloud (albeit a 445hp rolling cloud). I sprang for the Bang & Olufsen setup this time around, and it honestly sounds better than my home stereo does. Say whatever you like about humorless Germans, and I could say plenty, but they flat out know how to build cars.

Someday you got to check out Audi. The S8 is pretty respectable competition. Both great cars. Big, heavy, and powerful. Legacy= Big, heavy, gutless...lol

Re: Subaru Legacy

Anonymous — Thu, 21 Feb 2013 08:37:57 GMT

@Anonymous wrote:
@Anonymous wrote:
@Anonymous wrote:
I was looking into an AWD 328i. Nice car, but the price is high and depreciation sets in quick. Much better fuel mileage than the Subaru, yet still makes good power. Would be nice, but runs about $10k higher.
Yea, they do depreciate more quickly than I would like, but part of my compensation package is a car allowance, so the firm is bearing the bulk of the cost for the car. What I personally have in the vehicle I more than recoup at trade.
Even if the firm wasn't reimbursing for the vehicle, sometimes it is worth it if you really enjoy the car.

My work provides a few hundred per month for the vehicle, not quite enough to get into a luxury car. I also don't make real good money. Even spending $25k is a bit much. I was thinking about spending less, but I don't want to hate the car.

True. I'd buy the car anyway, but it's always better if you can do it with someone else's money.

Remember, you don't make real good money [yet]. You will, so enjoy the ride. You only get to go around once. Nobody ever carved "If only I'd had a little less fun" on their tombstone.

Re: Subaru Legacy

Anonymous — Fri, 22 Feb 2013 04:53:51 GMT

Anyone else have any more thoughts? I am thinking about signing the paperwork tomorrow.