Helping GF purchase her first car (Subaru Crosstrek)

[CreditSage]

Hi All,

I'm posting on behalf of my GF.. she is trying to buy a car in the next 30-45 days. 

Desired Car: Subaru Crosstrek 

Budget: $25,000 out-the-door

Used/New: Open to either

Location: San Francisco Bay Area

Here are the credit profile deets:

• Experian - FICO 8 758, FICO Auto Score 2 711, FICO Auto Score 8 734
• Equifax - FICO 8 741
• TransUnion - FICO 8 742
• Income - $90,000
• AAoA - 2 years 8 months
• Oldest Account - 3 years 11 months
• AoYA - 11 months
• No previous installment loans
• No badies

5 open revolving accounts (TOTAL UTILIZATION 6%):

• Amex - $25,000 CL (2% Utilization)
• BoA - $17,000 CL (3% Utilization)
• Capital One - $5,300 CL (0% Utilization)
• Discover - $3,700 CL (23% Utilization)
• NFCU - $3,000 CL (48% Utilization)

Question:

• Is AZEO the best advice to optimize score for purchase in desired time frame? Anything else recommended?
• What score increase could she expect with AZEO?
• What rate could she expect now and with x number of point increase (for instance after AZEO)?
• Does she qualify for prime interest rates? Subaru has a 0.99% interest rate running now through September 3

Everything I have read suggest getting preapproved from a CU such as NFCU (luckily she is a member)...It seems prime rates are around 4% at NFCU..would she qualify? 

Any other advice based on her goal and profile is HIGHLY APPRECIATED. Thanks all!

[Medic981]

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@CreditSage wrote:

Hi All,

I'm posting on behalf of my GF.. she is trying to buy a car in the next 30-45 days. 

Desired Car: Subaru Crosstrek 

Budget: $25,000 out-the-door

Used/New: Open to either

Location: San Francisco Bay Area

Here are the credit profile deets:

• Experian - FICO 8 758, FICO Auto Score 2 711, FICO Auto Score 8 734
• Equifax - FICO 8 741
• TransUnion - FICO 8 742
• Income - $90,000
• AAoA - 2 years 8 months
• Oldest Account - 3 years 11 months
• AoYA - 11 months
• No previous installment loans
• No badies

5 open revolving accounts (TOTAL UTILIZATION 6%):

• Amex - $25,000 CL (2% Utilization)
• BoA - $17,000 CL (3% Utilization)
• Capital One - $5,300 CL (0% Utilization)
• Discover - $3,700 CL (23% Utilization)
• NFCU - $3,000 CL (48% Utilization)

Question:

• Is AZEO the best advice to optimize score for purchase in desired time frame? Anything else recommended?
• What score increase could she expect with AZEO?
• What rate could she expect now and with x number of point increase (for instance after AZEO)?
• Does she qualify for prime interest rates? Subaru has a 0.99% interest rate running now through September 3

Everything I have read suggest getting preapproved from a CU such as NFCU (luckily she is a member)...It seems prime rates are around 4% at NFCU..would she qualify? 

Any other advice based on her goal and profile is HIGHLY APPRECIATED. Thanks all!

---

I leased my 2018 Crosstrek last year at this time. I got 1.9% "money factor" lease rate at the dealership and financed through Subaru Motor Finance who really is Chase Bank. My FICO 8s were 720-730 at the time.

My income at the time was $65K and her stats are better than mine were when I leased. 

You are overthinking this.

I would get the financing secured from NFCU and then go to the dealership, negotiate the deal, and then see if they can beat NFCUs rates.

GL2U

ETA: Dealership told me that FICO 8 > 720 would get me the best Subaru financing. A) they are salespeople and will say anything to get you to the table; B) I did get the best financing available

[CreditSage]

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@Medic981 wrote:

---

@CreditSage wrote:

Hi All,

I'm posting on behalf of my GF.. she is trying to buy a car in the next 30-45 days. 

Desired Car: Subaru Crosstrek 

Budget: $25,000 out-the-door

Used/New: Open to either

Location: San Francisco Bay Area

Here are the credit profile deets:

• Experian - FICO 8 758, FICO Auto Score 2 711, FICO Auto Score 8 734
• Equifax - FICO 8 741
• TransUnion - FICO 8 742
• Income - $90,000
• AAoA - 2 years 8 months
• Oldest Account - 3 years 11 months
• AoYA - 11 months
• No previous installment loans
• No badies

5 open revolving accounts (TOTAL UTILIZATION 6%):

• Amex - $25,000 CL (2% Utilization)
• BoA - $17,000 CL (3% Utilization)
• Capital One - $5,300 CL (0% Utilization)
• Discover - $3,700 CL (23% Utilization)
• NFCU - $3,000 CL (48% Utilization)

Question:

• Is AZEO the best advice to optimize score for purchase in desired time frame? Anything else recommended?
• What score increase could she expect with AZEO?
• What rate could she expect now and with x number of point increase (for instance after AZEO)?
• Does she qualify for prime interest rates? Subaru has a 0.99% interest rate running now through September 3

Everything I have read suggest getting preapproved from a CU such as NFCU (luckily she is a member)...It seems prime rates are around 4% at NFCU..would she qualify? 

Any other advice based on her goal and profile is HIGHLY APPRECIATED. Thanks all!

---

I leased my 2018 Crosstrek last year at this time. I got 1.9% "money factor" lease rate at the dealership and financed through Subaru Motor Finance who really is Chase Bank. My FICO 8s were 720-730 at the time.

My income at the time was $65K and her stats are better than mine were when I leased. 

You are overthinking this.

I would get the financing secured from NFCU and then go to the dealership, negotiate the deal, and then see if they can beat NFCUs rates.

GL2U

ETA: Dealership told me that FICO 8 > 720 would get me the best Subaru financing. A) they are salespeople and will say anything to get you to the table; B) I did get the best financing available

---

Thanks for the data points. Overthinking is my middle name. 

[Medic981]

I overthought the process as well. I think your GF will be fine. Just get the best financing deal you can before going to buy and then see what the dealership can do to beat it.

ETA: BTW, I love my Crosstrek and will probably never drive anything else except for Subarus.

[Anonymous]

She makes $90k per year I assume no kids etc tell her to pay those dam credit cards off!

[calyx]

Another cult of Subaru member here - I just purchased my Crosstrek a few months ago (March)

I prequaled with my local CU financing at 3.29%, I was eligible for Subaru's 3.49% promo they were running on the Crosstrek at the time.
Since I (or my CU, rather) was beating their rate, they were willing to bargain down to 2.9 - but that required a EQ FICO of over 700 (NC).  Unfortunately EQ had just gotten hit with high utilization and had dropped to 673, so no dice with Subaru/Chase.

Which is to say, if I had your girlfriend's stats, I would have gotten the better rate at the dealership.
FYI:  I financed my first Subaru with in house lending/Chase, and they were really awesome to work with, so I would have no problems going with their financing if I could have.

I echo the others:  Tell her to get the NFCU utilization down to less than 28% (less than 9 would be better, 0 best of all) and have her prequal with them - they're rates are really good, and the dealership might compete to get her an even better rate.

[KLEXH25]

I would say that although AZEO may not be necessary in her case, it certainly wouldn’t hurt. At the very least, I’d bring those two higher utilization rates down. I’d also make sure she secures an auto loan with NFCU first as a backup before going in. Chances are Subaru should have no issue beating that rate.

[CreditSage]

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@calyx wrote:

Another cult of Subaru member here - I just purchased my Crosstrek a few months ago (March)

I prequaled with my local CU financing at 3.29%, I was eligible for Subaru's 3.49% promo they were running on the Crosstrek at the time.
Since I (or my CU, rather) was beating their rate, they were willing to bargain down to 2.9 - but that required a EQ FICO of over 700 (NC).  Unfortunately EQ had just gotten hit with high utilization and had dropped to 673, so no dice with Subaru/Chase.

Which is to say, if I had your girlfriend's stats, I would have gotten the better rate at the dealership.
FYI:  I financed my first Subaru with in house lending/Chase, and they were really awesome to work with, so I would have no problems going with their financing if I could have.

I echo the others:  Tell her to get the NFCU utilization down to less than 28% (less than 9 would be better, 0 best of all) and have her prequal with them - they're rates are really good, and the dealership might compete to get her an even better rate.

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Thanks! This is helpful info

[sccredit]

I am going to take an alternative stance on this. With her scores I would not bother with NFCU, I see no way she would have an issue getting the promo rate.  That's just my $.02.