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2020 OB Limited XT
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336 Posts
Discussion Starter · #1 ·
It's hard to believe but if you look at the Subaru website this morning, September 1, Subaru is offering 0% financing on the 2018 Outbacks. I had expected Subaru to offer 0% financing early next year so it shows you what I don't know.

Those of us who were early adopters of the 2018 Outback are now in the position of wishing we had waited just a few days.

Fred Meloan
 

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2018 Outback 3.6R Limited, Twilight Blue
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57 Posts
Well.
That would have saved us about a grand if we don't pay off early.

Early adopters weren't as well treated this time. No free gifts, shortened free STARLINK subscriptions etc... Not complaining, got a much improved car at a great rate, but they spoiled us 2016 orderers a bit.


Sent from my iPhone using Tapatalk
 

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Honda owner shopping for a 2018 Outback but holding off due to head unit issues
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Unlike the offer for 2017 Outbacks which is for 63 months, the offer for 2018 Outbacks does not say how long it's for, apart from "Length of contract is limited." Does anyone know?
 

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SubaruOutback.org Founder
2021 Outback Limited 2.5L - 🍦The Ice Cream Man🍦
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5,606 Posts
Sweet, I did not expect this to happen on the 2018 Outback so soon. I sold my dealership's last new 2017 Outback yesterday so this is welcome news to me :)
 

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Sweet, I did not expect this to happen on the 2018 Outback so soon. I sold my dealership's last new 2017 Outback yesterday so this is welcome news to me :)
Car sales are in a lull. All the manufacturers are offering 0%, some for up to 72 months. Subaru has to keep up with the "Jones".

Like rebates of the past, I'm not sure how much of an incentive 0% financing still is to buyers.
 

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2018 3.6R Limited
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552 Posts
Sweet.. GTP and this are nice incentives to upgrade.
Now, car sales will go up soon, 500k cars in TX are going to be totalled.
 

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2019 2.5i Limited Forester (hers) (4th Subie), 2014 Impreza Premium (mine)(#5)
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Honda owner shopping for a 2018 Outback but holding off due to head unit issues
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I have never financed a car before. Here in NC the sales tax for cars (technically a "Highway Use Tax") is 3%.

Is that 3% tax typically paid upfront as part of the initial transaction with the dealer, or is it spread throughout the life of the loan?
 

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2018 Outback Touring 2.5i
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336 Posts
I have never financed a car before. Here in NC the sales tax for cars (technically a "Highway Use Tax") is 3%.

Is that 3% tax typically paid upfront as part of the initial transaction with the dealer, or is it spread throughout the life of the loan?
You can wrap tax/title/licensing/doc fee together with the car and get a loan to cover the whole thing. We did that last year with Truliant for a Toyota - 0 down (1.99%/60 months, so I couldn't see the upside of a down payment). At least with the credit union, they cut you a check to give the dealer, so tax is paid immediately to NC but is financed through your lender. I would assume it would be the same financing through a dealer, although you probably don't have to walk the check across the floor.
 

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2018 2.5i Limited w/EyeSight
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207 Posts
well that sucks. Just bought at 1.9% yesterday.

$1500 down the drain, dozens of wasted hours of the research hunting for the best price. Thanks Subaru.

Anyone have any idea if there's anything I can do about it at this point?
 

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2020 OB Limited XT
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336 Posts
Discussion Starter · #14 ·
well that sucks. Just bought at 1.9% yesterday.

$1500 down the drain, dozens of wasted hours of the research hunting for the best price. Thanks Subaru.

Anyone have any idea if there's anything I can do about it at this point?
FWIW, you are not alone. Subaru has just reported sales of 20,327 Outbacks in August and a decent percentage of those are the 2018 models. I can't remember when a manufacturer reduced the interest rate on new car loans this soon in the model year. It strikes me that Subaru has created a public relations nightmare for themselves. Hopefully, Mr. Doll will see the error in this decision and offer some kind of compromise for those of us who took delivery of a 2018 Outback and signed up for a 1.9% 63 month loan.

I, for one, would be happy to switch to a 48 month 0% loan and make the higher monthly payment.

My $0.02. YMMV

Fred Meloan
 

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SubaruOutback.org Founder
2021 Outback Limited 2.5L - 🍦The Ice Cream Man🍦
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5,606 Posts
well that sucks. Just bought at 1.9% yesterday.

$1500 down the drain, dozens of wasted hours of the research hunting for the best price. Thanks Subaru.

Anyone have any idea if there's anything I can do about it at this point?
Are you happy with your new car? Someone out there is going to get a "better deal" than you got but we cannot go back in time to alter any decisions. Be happy with what you have and don't get overly concerned about what might have been.

Everyone cuts their own deal in life, had I waited a month to lease my 2018 Outback I could have potentially saved a small amount of money over the duration of my lease due to lower finance rates. Ultimately who cares? Many people get so wrapped up in not spending money that it can become an all consuming curse in their lives and in the way that they think.
 

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FWIW, you are not alone. Subaru has just reported sales of 20,327 Outbacks in August and a decent percentage of those are the 2018 models. I can't remember when a manufacturer reduced the interest rate on new car loans this soon in the model year. It strikes me that Subaru has created a public relations nightmare for themselves. Hopefully, Mr. Doll will see the error in this decision and offer some kind of compromise for those of us who took delivery of a 2018 Outback and signed up for a 1.9% 63 month loan.

I, for one, would be happy to switch to a 48 month 0% loan and make the higher monthly payment.

My $0.02. YMMV

Fred Meloan
I don't see any sort of public relations issue. Interest rates can change daily and are many times controlled by your credit score.

What was the 48 month interest rate when you signed our contract?
 

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Are you happy with your new car? Someone out there is going to get a "better deal" than you got but we cannot go back in time to alter any decisions. Be happy with what you have and don't get overly concerned about what might have been.

Everyone cuts their own deal in life, had I waited a month to lease my 2018 Outback I could have potentially saved a small amount of money over the duration of my lease due to lower finance rates. Ultimately who cares? Many people get so wrapped up in not spending money that it can become an all consuming curse in their lives and in the way that they think.
Agreed that life goes on. But I can tell you for sure that next time I go to buy a car, this experience will be foremost in my mind. No matter how much we like the car, this is going to be our first and last Subaru. I suppose I live by the 'fool me once...' philosophy more than most.

I don't see any sort of public relations issue. Interest rates can change daily and are many times controlled by your credit score.

What was the 48 month interest rate when you signed our contract?
I also doubt there is going to be any real PR issue. Just a lot of new Subaru owners who are not going to come back next time they need a car. I always thought that Subaru valued loyalty more than other manufacturers, but this certainly shows me that they are just like everyone else. It's a live and learn kind of scenario I guess. For reference, 48 month rate was 1.9% when I signed yesterday.
 

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2018 Subaru Outback 3.6R
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You may have also got a better sticker price yesterday vs today to meet and end month quota. It's a day by day business.
 

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2020 OB Limited XT
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Discussion Starter · #19 ·
I don't see any sort of public relations issue. Interest rates can change daily and are many times controlled by your credit score.

What was the 48 month interest rate when you signed our contract?
z28dug: If I recall correctly the interest rate for the 2018 models in July was 1.9% for all periods up thru 63 months. Quite frankly I was surprised that it wasn't 2.9% as there was still a large number of 2017 models on dealer lots. 1.9% was, and still is, a great rate for an auto loan. The surprise for me is that Subaru reduced the rate this quickly in the model year. Subaru's decision had the ability to make a whole bunch of people happy or unhappy. This one makes them unhappy and for me the result is that I will delay my next purchase until later in the model year. And so will a lot of other buyers.

Time will tell if Subaru made a bad decision. I'm in the camp that believes that there will be a negative effect on Subaru sales in the future.

Fred Meloan
 

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I agree with FDMeloan, I bought my 2018 last week at 1.9%. 2017s were 0%. I asked and dealer said they will NEVER be 0% on '18s. I think I still got a good deal, and would do it again, but 1.9% still cost me something.
 
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