Anyone who financed there Legacy...HELP!!!

I went to the Stamford Subaru in CT yesterday and put a $1000 deposit down a LTD legacy 2008. The price tag on it was $15,000. So me and the guy were talking numbers and he said it would be $1275 for the NY tax,$500 for DMV fees and then the interest we would have to find out later but he put it at 6%.

 

So I get the call back today from the finance guy and he has me at $283 for 6yrs and I said cool but I wasnt thinking straight. I was working and in a rush. When I get on my break I do the math and it came out to $20,500.

 

I called the guy back and asked him how did it get so high. He told me he really didnt have anytime to go threw all of it over the phone. Just come in monday and we'll talk. This is $20,500 with $2000 down. The interest is 6.99% if i get the car certified but I was thinking why do I need to get it certified if its under factory warranty ? If I didnt get it certified then its going to be 9.64%. This was with a credit score just under 700.

 

I did the math now and I got $17,500 with 6.99%,$1275 NYS tax, $500 DMV fees with $1500 down.

 

Is the APR difference if certified or not a bunch of BS ?

 

Is getting it certified really that important since its still under factory warranty ?

 

the car has 30,000 miles but im not going to drive it much so im going to have at least 6 months to think about getting the extended warranty.

 

Any other costs I should look out for that I dont need ?

 

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Talk to a bank or credit union. You should be able to get a better rate than their offering. Negotiate the price of the car then if you don't like the loan you can always use your own financing.

Penfed.org, I got a 3.99% used car loan at the age of 22 with no cosigners. I do have awesome credit though. Don't need to be a military, just enroll in NMFA for 1 year(20$) and be done with it.

I would walk,,and find a better deal/interest rate.

my two centavos

I would walk,,and find a better deal/interest rate.

my two centavos

 

ditto, their bullshitting on the apr, they have "buy" rates... if they can give you 6.99% they can give it you no matter what.

 

i hate dishonest dealers.

ps never put a that large of a deposit, they can use it to get you back in, at most put $100 down.

 

Now when you try to get your money back its going to take "weeks". I used to work at a dealership i know all the dirty tricks.

Penfed.org, I got a 3.99% used car loan at the age of 22 with no cosigners. I do have awesome credit though. Don't need to be a military, just enroll in NMFA for 1 year(20$) and be done with it.

 

 

what is NMFA??

Definitely think twice, doesn't seem legit at all. +1 on checking with YOUR bank/credit union, you should easily be able to beat 9% with a 700 credit score.

 

lucas569 is right, being certified may affect the price, but it should not affect the interest rate (so the car is certified as mechanically sound and safe, why does that have an affect on your loan?!?).

 

my 2c...walk.

Its actually the cheapest deal I could find on the net within 100 miles of me on a LTD.

 

Im going to check with my bank and penfed.org

 

Whats the best deal on a warranty ?

You should definitely be pre-approved with your own bank or credit union and then only use a bank they get if they can beat the rate you already have in hand.

 

The dealership can actually mark up the rate they get from the bank so they make more money on the deal. Then again, as long as they come in under what you come in with, you both make out on the deal.

 

Oh, and FYI, do yourself a favor and do not finance a used car for 6 years. You'll regret it. I never do more than 5 on a new car and try to do a used car for 4. If you really cant afford to pay off the car in 5 years, honestly you're looking in the wrong price range. So much can happen (job situation, life change) in 5 years.

^Word(s). Always consult Das Foruum.

Best luck. Don't let it sour you on an LGT. Find a reputable dealer.

wow dude, walk.. thats BS if you can wait you may find a better dealership and a better deal. they are jerkin around with the numbers too much, certified or not should have no effect on the APR, that would throw a red flag up for me, i would either ask about that crap, or just try financing with your own bank or even a credit union.

hehehehe dont sign ...it's missing a hood scoop on the hood....

You should definitely be pre-approved with your own bank or credit union and then only use a bank they get if they can beat the rate you already have in hand.

 

The dealership can actually mark up the rate they get from the bank so they make more money on the deal. Then again, as long as they come in under what you come in with, you both make out on the deal.

 

Oh, and FYI, do yourself a favor and do not finance a used car for 6 years. You'll regret it. I never do more than 5 on a new car and try to do a used car for 4. If you really cant afford to pay off the car in 5 years, honestly you're looking in the wrong price range. So much can happen (job situation, life change) in 5 years.

 

That's exactly what I wanna do. I want 5 yrs MAX and probably finish paying it off in 4.

that seams crazy, granted im in montana, but here there are tons of subarus, i got my 05 lgt wagon with 70k on it for just under 12k,

 

as for warrnty my wife talked them down to 600 bucks for the extended warrenty on her 06 tribeca with 40k on it....

 

 

i say walk and fine a better deal....

The math does seem a bit flawed. Just realize that when you finance, you are not just paying intrest on the loan amount. You're going to pay a compounded intrest...mo money. Sort of like paying intrest on the balance of the loan each month. Go to Autotrader and use the loan calculator to give you a pretty good idea of your payments and such. Just input the variables and it does everything for you. I did a $14000 loan at 7% for 5 yrs and came up with $277 a month for you so yeah, $283 over six years is a tad bit much for the car, especially since it's missing the all important hood scoop. Just tell the dealer what you have to put down, the length of time you want to pay, and the amount you want to pay (within reason/use loan calc) and let them fanagle the in between stuff. It's either going to be yes or no. If yes, enjoy the new ride. if no it's time to go. Good luck with your purchase.

The math does seem a bit flawed. Just realize that when you finance, you are not just paying intrest on the loan amount. You're going to pay a compounded intrest...mo money. Sort of like paying intrest on the balance of the loan each month. Go to Autotrader and use the loan calculator to give you a pretty good idea of your payments and such. Just input the variables and it does everything for you. I did a $14000 loan at 7% for 5 yrs and came up with $277 a month for you so yeah, $283 over six years is a tad bit much for the car, especially since it's missing the all important hood scoop. Just tell the dealer what you have to put down, the length of time you want to pay, and the amount you want to pay (within reason/use loan calc) and let them fanagle the in between stuff. It's either going to be yes or no. If yes, enjoy the new ride. if no it's time to go. Good luck with your purchase.

 

Yeah I was doing the math on my own and on cars.com

 

7% interest on $15,000 is like 1100.

 

When I do on the cars.com its adding another 1000-1500

Just remember that tax is unavoidable. I didn't realize this when I bought my car here in Utah from a private seller, so when I had to put over $1000 (tax plus registration fee) on my credit card at the DMV, that sucked.

 

6% is pretty dang good for a dealer's interest rate, but you can do better. I think I got 5% from my credit union. Most dealers want between 7 and 9%.

Sep 2009 I shopped around pre-approved car loan online (BO America, Bank One) before I went down to dealership to finalize the deal. From BO America, I got 4.99%/5 yrs on a used 07 Outback wagon. Dealer's Finance guy said my 4.99% is too good and they can't match it.

 

I found that the newer the used car is the lower the interest rate is.

no matter what you do, your gonna get taking for a ride. As for the extended warranty... hell ya dude! take it, or talk them down a bit! I purchased my car in july and in december i had a wheel baring go, and i didnt pay a .01$ for it. I talked to another job that was a subaru dealer ship... it would of cost me over $500 to fix it. Yea it seems like you shouldnt get it... but 1 little thing goes wrong, your pockets are empty now.

I also recommend Pentagon Federal Credit Union, all you have to do to sign up is donate $20 to the National Military Family Services and your in. I got 3.99% and it only took 10mins to get preapproved on their web site

penfed.org

no matter what you do, your gonna get taking for a ride. As for the extended warranty... hell ya dude! take it, or talk them down a bit! I purchased my car in july and in december i had a wheel baring go, and i didnt pay a .01$ for it. I talked to another job that was a subaru dealer ship... it would of cost me over $500 to fix it. Yea it seems like you shouldnt get it... but 1 little thing goes wrong, your pockets are empty now.

 

IIRC, the wheel bearings had a TSB issued, and are now covered to 100K. The extended warranty is crap, there is a $100 deductible for any warranty work done under the Suburu extented warranty. So I am in the other boat, I have only had one item fixed under the extended warranty... Cost me $100, total savings $75. Not worth the 2K I paid for it *sigh*

Penfed.org, I got a 3.99% used car loan at the age of 22 with no cosigners. I do have awesome credit though. Don't need to be a military, just enroll in NMFA for 1 year(20$) and be done with it.

+1 That is wherei went for the Odyssey about 6 months ago. You can not beat their rates!

Walk on the deal. There will always be more Legacy's around.

I'm willing to bet the finance guy has a bunch of "back-end" products built into the deal already. It's merely a closing technique hence why he didn't want to go over numbers without you there....chances are you won't check math in front of him so maybe he can make some additional money.

 

As far as the rate, it is very true that certifying a car will get you a lower rate. This rate would come from subaru motor finance. From the way it sounds, it looks like he has you on a 72 month purchase on a tier 3 with a 1 point bump in rate (that is the max you can do when financing with subaru).

 

I would check the math on the back-end products and make him take off anything you don't want. Go and get a pre-approval at other places and if you get a lower rate than the dealership quoted you, go back to the dealership and see if they can beat it. If not, go with the other bank....if so, go with the dealership.

So I made another trip out there and I see where's the $3000 difference.

 

Interest is $4349.94 :spin:

 

Not certified...

 

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Certified...

 

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