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Hi Guys

I got a question. A local Subaru dealership is offering a 0% APR on new cars. When I called he said its only for 36 months. I asked what the rate for top tier credit would be for 60 months. He told me that would be 2.9%. Is he making this up? How flexible is the APR on new cars?
 

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That 2.9% is SOA's rate. It could change in September with the Labor Day sales. Some credit unions are 1.9% for 60+72months. Shop around, with good credit you should do well.
 

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Discussion Starter #3
That 2.9% is SOA's rate. It could change in September with the Labor Day sales. Some credit unions are 1.9% for 60+72months. Shop around, with good credit you should do well.
Thanks
How does buying car through a different bank work? I have a car I want to trade in. How will the bank consider this?
 

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My bank (Chase) offered me 3.47 and I told them if they couldnt match the 2.9 the dealership was offering, my business would go to them. Having a mortgage and 2 paid off car loans with excellent credit, my thoughts Chase would work with me but they didnt. My dealership ended up getting me a loan at 2.49 (top tier rate) on my 2013 OB through Security Service Federal Credit Union on a 60 month. That is about as low as I have seen the rates for 2013's---I'm sure that will change over time when they blow out the 2012's.
 

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My dealer's finance guy shopped around some for me to try to get me a better rate than Subaru was offering, and he was able to find me 2.71% vs. the 2.9% Subaru was offering.

Thanks
How does buying car through a different bank work? I have a car I want to trade in. How will the bank consider this?
I haven't done this, but I imagine you'd have to bring a signed contract to the bank with the final amount. If you're trading in a vehicle it will be reflected on that paperwork. If you're shopping around for a loan you could ask the banks how that would be handled.
 

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I have a car I want to trade in. How will the bank consider this?
The bank doesn't care about your trade. All they care about is the amount being financed vs. the value of the new vehicle. So if you're expecting to roll $5k negative equity into the new loan, you'll probably be disappointed. However, if you have $5k of equity in your trade, then it'll be just like having a $5k cash down payment (minus any sales tax savings on the trade).
 

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Thanks
How does buying car through a different bank work? I have a car I want to trade in. How will the bank consider this?
You'd walk in or go online to apply for a loan. You fill in the application and they will either give you a call or have you go to the nearest branch to finalize the transaction.

re: trade in. you will have to take care of this on your own. Either through Carmax or private sale. After you sell your vehicle, the funds will be used for downpayment on your new vehicle you will finance.

Typically, top tier special rates offered by car companies can't be beat.
Anything below 3%, it's safe to finance through offered special rates. If you're purchasing used i would definately start calling the big name banks and local credit unions for best rates.

currently in lending industry, hope this helps.

Ric
 

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Personally I would go for the 36 months and 0% or just pay cash. About a month ago I bought a 2013 and that is how I did it. I hate paying interest.
 

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My bank (Chase) offered me 3.47 and I told them if they couldnt match the 2.9 the dealership was offering, my business would go to them. Having a mortgage and 2 paid off car loans with excellent credit, my thoughts Chase would work with me but they didnt. My dealership ended up getting me a loan at 2.49 (top tier rate) on my 2013 OB through Security Service Federal Credit Union on a 60 month. That is about as low as I have seen the rates for 2013's---I'm sure that will change over time when they blow out the 2012's.
Chase has been bleeding off loan customers the kind banks want - for many years now. Even having an employee discount Chase lost us as a customer to Wellsfargo for our home loan and refi on the property they held the original loan for even with over 60% equity in the property. LOL -- But to be fair the interest rates - vs locking up money in low yield long term lending which now days could be viewed as high risk is a fair reason for banks to have little interest in doing that business anymore.
 
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