Need Help Quick! Loan and Extended Warranty experience.

[~el~jefe~]

Hey Peeps,

I have a 691 Transunion auto-enhanced FICO that Chase decided to use for my financing quote. I wish they used the other two, would have hit 701-702.

I got a Dealer quote of 4.49% financing on 60 months. Eh. I was assuming I would hit like 2.99%. I have a great background aside from the scores never going up, such as perfect prior car loan, good salary, near 0 balance credit cards etc.

So, I was offered a 2.7% interest rate from the dealer if I buy the:
Subaru Gold Plus extended warranty.

First deal is $3040 dollars in interest.
Second deal is $2010 in interest, but I buy the warranty. It winds up being almost the same payment, but I get a "free" warranty. It is obviously the finance department who makes about 2% as a salary on the straight loan. They also make a commission on the warranty, so they make near 0 on the loan, but the warranty they do well on.

Of course, they will not give me 2-3% loan without an extended subaru warranty, as that would be 0 dollars profit for the loan salesman. I get that, I do not need to push for 0 dollars deal.

On big Question: Does anyone think the 70,000 "bumper to bumper" warranty from Subaru is worth it? I am so so on that, as I chose the car because it is the most reliable sports car that is in my price range.

Any thoughts? Thanks!

[Yanbags]

Do you plan on keeping the car for at least as long as the warranty period and keeping it stock that whole time? IMO that's the only way it would make sense to get the extended warranty. I personally don't think it's really worth it anyway, as you still have the powertrain warranty for 5yr/60k miles.

4.49% is pretty high; I'm sure you can get a better rate from your bank or credit union.

The whole 2-3% with the contingency being the extended warranty also sounds like BS. If they can sell it to you at that rate with extra "goodies", they should be able to sell it to you at that rate without the crap. I would negotiate for this first.

Also, don't put all of your eggs in one dealership. Talk to the others too

Edit: Assuming you are taking a loan of $25700 over 60 months, 4.49% would be $3041 in total interest. If we're staying with the same loan amount, 2.7% would put you at $1803 total interest, not $2010. Just incase you were getting these figures from the dealer.

[Joon525]

Instead of trying to justify the extended warranty I would shop elsewhere for the loan.
I already know I wouldn't like this dealer (and they probably wouldn't like me).

[~el~jefe~]

Originally Posted by Yanbags

Do you plan on keeping the car for at least as long as the warranty period and keeping it stock that whole time? IMO that's the only way it would make sense to get the extended warranty. I personally don't think it's really worth it anyway, as you still have the powertrain warranty for 5yr/60k miles.

4.49% is pretty high; I'm sure you can get a better rate from your bank or credit union.

The whole 2-3% with the contingency being the extended warranty also sounds like BS. If they can sell it to you at that rate with extra "goodies", they should be able to sell it to you at that rate without the crap. I would negotiate for this first.

Also, don't put all of your eggs in one dealership. Talk to the others too

Edit: Assuming you are taking a loan of $25700 over 60 months, 4.49% would be $3041 in total interest. If we're staying with the same loan amount, 2.7% would put you at $1803 total interest, not $2010. Just incase you were getting these figures from the dealer.

I know for a fact that the dealerships tack on their own % for financing in house. I have come across irritating and difficult to fulfill requirements from banks for an auto loan. I have part cash business part 1099 work. They ask for statements etc etc from me. Chase subaru auto did not give a crap if i ate babies for a job, they saw good down payment and other logical stuff to grab the deal. I knew that would happen, the lack of needing other crap. I have to find somewhere that does not check a massive amount of crap for a 691, 701, 702 true fico credit score.

I agree now and thank you about the need to negotiate it.

One point is that there are NO other dealerships I can go to. There are 0 within 100 miles of NY City manual BRZ's, and much farther distance for a PPackage. Plus, mine has 7 miles on the OD. One idiot test drive could kill this thing. It took almost 4 months after ordering the car to receive it too.

[Joon525]

Check with your own bank to see what kind of a deal they can give you, don't HAVE to get financing through a dealer. I've had decent numbers come back from my own bank even though when I bought this car I ended up going with the dealer's offer (they matched it).

[~el~jefe~]

Originally Posted by Joon525

Check with your own bank to see what kind of a deal they can give you, don't HAVE to get financing through a dealer. I've had decent numbers come back from my own bank even though when I bought this car I ended up going with the dealer's offer (they matched it).

Ok I will check with it. thank you. It is a small bank but oldish one.

[ToySub1946]

I'm confused. I thought you already owned a new 2017.

My 2015 FRS, bought new, now 42,000 miles....Zero problems so far. Absolutely nothing to take it to the dealership under warranty so far.

So, I'd say, you don't need ANY warranty whatsoever.

[Yanbags]

Originally Posted by ~el~jefe~

I know for a fact that the dealerships tack on their own % for financing in house. I have come across irritating and difficult to fulfill requirements from banks for an auto loan. I have part cash business part 1099 work. They ask for statements etc etc from me. Chase subaru auto did not give a crap if i ate babies for a job, they saw good down payment and other logical stuff to grab the deal. I knew that would happen, the lack of needing other crap. I have to find somewhere that does not check a massive amount of crap for a 691, 701, 702 true fico credit score.

I agree now and thank you about the need to negotiate it.

One point is that there are NO other dealerships I can go to. There are 0 within 100 miles of NY City manual BRZ's, and much farther distance for a PPackage. Plus, mine has 7 miles on the OD. One idiot test drive could kill this thing. It took almost 4 months after ordering the car to receive it too.

I see, convenience and sanity is definitely a factor too. I'm a little confused - did you place an order with this dealership already after agreeing on a selling price and wait 4 months?

I know how hard it is to find the right one in NYC - I got lucky finding mine in NJ. I wouldn't worry too much about test drive miles on it; I used that as a negotiating factor (bought mine w/ ~200 test drive miles on it). These seem hard to sell for dealers so you might have more negotiating power than you think.

[~el~jefe~]

Originally Posted by Yanbags

I see, convenience and sanity is definitely a factor too. I'm a little confused - did you place an order with this dealership already after agreeing on a selling price and wait 4 months?

I know how hard it is to find the right one in NYC - I got lucky finding mine in NJ. I wouldn't worry too much about test drive miles on it; I used that as a negotiating factor (bought mine w/ ~200 test drive miles on it). These seem hard to sell for dealers so you might have more negotiating power than you think.

Staten Island is a different country, and not part of the USA.

I did put a deposit down, negotiate the price of the car, and order it. It came 4 months later. Today! It looks all dusty and has plastic on it. It is my car, I have to just figure out how to get the best deal now. I could renegotiate the price, but I rather not as I felt it was fair. I knew interest would happen, but my credit scores rose since December and I know now I could get better deals.

[Yanbags]

Originally Posted by ~el~jefe~

Staten Island is a different country, and not part of the USA.

I did put a deposit down, negotiate the price of the car, and order it. It came 4 months later. Today! It looks all dusty and has plastic on it. It is my car, I have to just figure out how to get the best deal now. I could renegotiate the price, but I rather not as I felt it was fair. I knew interest would happen, but my credit scores rose since December and I know now I could get better deals.

I work in FiDi and have bought cars from NJ and Colorado. I've actually never bought a car from SI.

Yeah, it just seems like you should be either negotiating that interest rate or sourcing it from a different lender. Hopefully they would want to get it out of the door faster and just accept your terms...

[~el~jefe~]

Originally Posted by Yanbags

I work in FiDi and have bought cars from NJ and Colorado. I've actually never bought a car from SI.

Yeah, it just seems like you should be either negotiating that interest rate or sourcing it from a different lender. Hopefully they would want to get it out of the door faster and just accept your terms...

It looks like I have them in a good position. I actually bit on the 7 year 100,000 extended warranty. It seems that it has been somehow reduced (the cost of it) for this sale, so I am interested in it. I will also look outside for financing, but only for a day, not putting too much stress into it as it seems like the place is scrambling now to make the deal work. They do have a car that was ordered that will NOT sell well on long island. Hardly anyone buys manual transmissions here, almost 0. They are a bit passive here. Plus, this version is more expensive, would be a dead weight vs just making an instant sale with already a good markup on it. I agree with you.

[mav1178]

You can also cancel the warranty after you get it.

[~el~jefe~]

Originally Posted by mav1178

You can also cancel the warranty after you get it.

That is a possible point. Might be signing something though. 7 years of no thoughts about a car is really cool. good point though