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Super Member
2010 Forester XT 4EAT
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Discussion Starter #1
Okay, just wondering if anyone is Pro or Con financing from Subaru directly.

I'm looking at a 2010 Forester and I was advised they had 3.9% for 63 months or 4.9 for 72. I wanted the 60, but I also wanted to stay under a certain ammount for a payment each month. So, the dealer tells me that Subaru would want ME to pay 5.9% for 72 months because of my credit score. He says they told him the score had to be 700 or higher for the 4.9%. My credit score was 696!!! Where's the love? Why should I pay over $2100 more for 4 points on a score! Not to mention I just paid off a bill for my kitchen flooring that was financed about 2 weeks ago. My credit isn't bad!
 

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2010 Forester X Premium
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I got 4.9 for sixty with 660 credit score lol ;) but I dropped 8k down. I think your dealer is full of it. It will be only a variable of your score and the amount you financed. Lower score will need more down to compensate for the difference. So since you can't fix your score in that short period of time, drop few K extra.
 

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2009 Forester XT 4EAT
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I believe what others have said concerning the amount down versus the amount financed and your credit score all play a role in the game.
I took advantage of financing my '09 XT new back in May of 2008 and got the 3.9% (I think that was it). I paid it off early, but Chase Financial (which actually owns the loan) was very easy to work with.
 

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2010 Forester XT 4EAT
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Discussion Starter #7
Well, I just feel slapped in the face. Since my wife is an ASPCA Guardian we get a few thousand off the price. So the whole discount we get would be largely eaten up by the extra point. I'm really going to have to make a seen. I've never had a NEW car in my life and I don't want to pay used car interest rates. There's to many out there offering 0% and I have pretty darn good credit.
 

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12 Premium 5-speed
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Making a scene with a 696 score? 696 isn't as good as you might think it is. 710-720 is right around the national average score and you're sitting below that. Edit: while you may be doing everything right and thus feel you have good credit, maybe your credit simply doesn't have enough "experience". :) By that, I mean that a really good score takes time to achieve even if you've been careful with your money and financial responsibilities from Day One.

As TC2000 says, hit up your local credit unions and small banks. At first, don't apply for a loan with them - just say "here is our income and debts and here is our score, so how much can we borrow for a new vehicle and at what rate?" Once you find the best offer, THEN apply for a loan; they should be able to tell you the rate and a rough payment without filing a complete application. Applying for a bunch of loans will only drop your score further, even if you pick only one loan. Inquiries to your score (from a lender) won't affect your score but loan applications will.

FWIW, pitching a fit at the dealer isn't going to do much good. Last I heard, Subaru does its financing through Chase and you can be certain that Chase's loan rate criteria are set in stone by now. All the dealer will likely do is point you to a local bank or tell you to pony up for a larger down payment.

The Black Box said:
If you wait till later in the year Subaru offers 0% on some models. I got it for my '08XT. Not sure about the credit rating needed though.
At the very least, waiting a couple months will likely give you those extra points you need in order to meet the criteria for the lower rate.
 

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2010 forester 2.5x prem.
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I was never told my credit score but I got 4.5 for 72 and thought I was getting ripped. I guess thats not bad as it turns out. Would have liked 0% but then again who would'nt?:huh:
 

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2001 Forester S, auto
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I can safely say it's was not the dealer that put you at Tier 2, it was Subaru Motors Finance. You don't qualify for the best rate, and it is what it is. The only way around that is your business manager *might* be able to get someone at SMF to bump you up into Tier 1 if you put more money down.
 

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2017 2.0 FXT-Touring CVT
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Both loans we have are through Chase Financial and they are as follows: 1.9% for the Impreza and 2.9% for the Forester. I've had several loans in the past with them but for different cars.
 

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2010 Forester X Premium
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I can safely say it's was not the dealer that put you at Tier 2, it was Subaru Motors Finance. You don't qualify for the best rate, and it is what it is. The only way around that is your business manager *might* be able to get someone at SMF to bump you up into Tier 1 if you put more money down.
You wrong on this, there are delears that make $ on %. Why you think if you ever say no, they always come out with a better rate? This is how the companies work, why some delears don't even want to talk with $ costumers? Because on top of the car they make extra money on financing, because banks pay them kick backs. ;)

Youst to clarify, sure there are delears that don't do that, but don't assume, as this is standard practice in delears these days.
 

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You wrong on this, there are delears that make $ on %. Why you think if you ever say no, they always come out with a better rate? This is how the companies work, why some delears don't even want to talk with $ costumers? Because on top of the car they make extra money on financing, because banks pay them kick backs. ;)

Youst to clarify, sure there are delears that don't do that, but don't assume, as this is standard practice in delears these days.
That's when the dealer is pointing the buyer toward something other than Subaru financing. I don't see anything in the OPs gripe that has me thinking that's what being done in this case.
 

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2001 Forester S, auto
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471 Posts
I am not wrong on this, trust me. We make a tiny bit of money on the SMF financing, even 0%, but the rate he was quoted because of his credit score is NOT marked up, that is the lowest rate at that term through SMF for a Tier 2 credit customer.
 

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2010 Forester XT 4EAT
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Discussion Starter #16
Update! I got exactly the deal and the rate I wanted and should get. Turns out that if you threaten to kill the whole thing and walk away some dealers really will work with you if they actually want to sell cars. There's more than one credit reporting agency too. The guys said my credit wasn't bad and just re-figured the deal. I got everything I wanted and the exact car I wanted! So, it looks like I'll be a Subaru owner after-all!:banana:
 

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You were close enough that, assuming debt to income was good, and you had a decent salary, etc, that they were probably able to call SMF and get them to bump you up. Which is cool. Sometimes they (SMF) don't budge, depends on the mood of the person reviewing your file I think, lol
 

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2010 Forester
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My wife got 4.9 for 72 months last week on her (our) 2010 Forester. Her credit score is 790, give or take a few points. I guess she could have pushed them for 3.9, but she thought that 4.9 was a fair deal in today's economy.
 
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