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Discussion Starter · #1 ·
I just bought my 2013, and it wasn't until I was signing paperwork that I was told that there is no "Subaru Financial" - Subaru has assorted local banks handling their loans. I was told that my loan would be handled my "Belmont Savings Bank". I didn't think anything of this, and the rate was good, so I went with it.

I just got my first bill in the mail. After calling up 4 different numbers, I found out that the Belmont Savings Bank doesn't handle the loans - it's a "completely separate group" according to them. There's no web login. You have to mail a check or set up auto-pay (over the phone). They charge you a fee to make a payment over the phone, even.

Am I crazy for having expected a web account I could log into for this sort of thing? If I'd known going in, I would have gone with a different bank. Now that I already have the loan, though, I can't get a competitive rate from another bank (refinance is not the same as a new car, of course).

Yes, I know I can probably set up auto-pay, or even set it up so that my bank mails a physical check every month. But I would really much prefer an account that I can log into to see the total loan amount, received payments, etc.
 

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'11 Outback 2.5i CVT - '06 Forester X 5MT
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Your'e dealer is wrong.

Subaru offers dealer direct financing through Chase Bank. It is called Subaru Motors Finance. Once you have the loan it can be access though Chase Bank's online banking site.

Here's a link to Chase
https://www.chase.com/online/auto-loan/subaru_motor_finance.htm

Subaru's Link
http://www.subaru.com/financial-tools/subaru-financial-programs.html

Heck they're even offering 0% and 0.9% right now...
http://www.subaru.com/special-offers/index.html



I've financed 3 with em so far ;)

I'd send an e-mail straight to SOA through their contact us button and let them know what you went through.
 

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I know folks with bad credit that go through dealerships, and end up with some banks that you have to pay to make phone payments, and have to mail in payment, etc... in addition to 13% interest rates. A co-worker had his car financed through Wachovia Dealer Serves (WFS Financial), he would always talk about how ghetto/terrible the customer service was.

OP when you say it was a good interest rate, what do you define as good?
 

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Yeah, I was financed through Chase with the 0.9% Subaru is offering.

It is possible if you didn't qualify for the 0.9% financing they signed you up with a different bank.
 

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I have Subaru financing, started with Chase and then they sold my loan to Wells Fargo.
It's 2.9% for48mo.
 

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Discussion Starter · #6 ·
I know folks with bad credit that go through dealerships, and end up with some banks that you have to pay to make phone payments, and have to mail in payment, etc... in addition to 13% interest rates. A co-worker had his car financed through Wachovia Dealer Serves (WFS Financial), he would always talk about how ghetto/terrible the customer service was.

OP when you say it was a good interest rate, what do you define as good?
1.9%, no term limits. That's what Subaru was offering at the time, but I see that now they are offering 0.9%. I have a very good credit score, so I don't think that was related.

EDIT: Just got off the phone with the dealership. Found out what happened. Apparently when a local bank has the same rate as Subaru, the local bank will add an incentive for the dealer to go with them. So my dealer decided to go with Belmont and not even mention that there was another option (and in fact mislead me into believing that it wasn't an option at all). They said that they are not willing to do anything to fix the situation (not that I know of what they could do, either).
 

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1.9%, no term limits. That's what Subaru was offering at the time, but I see that now they are offering 0.9%. I have a very good credit score, so I don't think that was related.

EDIT: Just got off the phone with the dealership. Found out what happened. Apparently when a local bank has the same rate as Subaru, the local bank will add an incentive for the dealer to go with them. So my dealer decided to go with Belmont and not even mention that there was another option (and in fact mislead me into believing that it wasn't an option at all). They said that they are not willing to do anything to fix the situation (not that I know of what they could do, either).
This is the first thing that came to mind reading your post. Dealers do this all the time ie get kickbacks from pushing financing through local banks etc. They basically hand pick certain customers based on credit score ie risk level and filter them through a local bank for a kick back. What is very wrong about this is the way your local dealer handled your situation they should have laid out all your bank options for you and let you choose vs telling you no this is your only option.

Another reason I pay cash for my cars
 

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1.9%, no term limits. That's what Subaru was offering at the time, but I see that now they are offering 0.9%. I have a very good credit score, so I don't think that was related.

EDIT: Just got off the phone with the dealership. Found out what happened. Apparently when a local bank has the same rate as Subaru, the local bank will add an incentive for the dealer to go with them. So my dealer decided to go with Belmont and not even mention that there was another option (and in fact mislead me into believing that it wasn't an option at all). They said that they are not willing to do anything to fix the situation (not that I know of what they could do, either).
I would be contacting the BBB and Subaru of America immediately. I would be curious to see if there were any additional financing costs too. I just think that seems very shady IMO. Even if you got the same rate, you deserve the option of quality service after the sale.
 

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Discussion Starter · #10 ·
This is the first thing that came to mind reading your post. Dealers do this all the time ie get kickbacks from pushing financing through local banks etc. They basically hand pick certain customers based on credit score ie risk level and filter them through a local bank for a kick back. What is very wrong about this is the way your local dealer handled your situation they should have laid out all your bank options for you and let you choose vs telling you no this is your only option.
Yeah, and when I called them just now they seemed genuinely uninterested in my complaint and made no attempt to make it right. When I got off the phone with them, I said "I hope your dealer enjoys the incentive at the expense of your customers experience"

Another reason I pay cash for my cars
I may just do that. I had intended on paying off a large chunk as soon as the first bill came in anyway, but now I may just pay the whole thing, instead. Problem is, it's much more difficult because my money is mostly in online accounts that I can't write a check from.
 

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You can still go and get financing through your choice and simply pay off the loan they set you up with. The dealer doesn't care given at this point they can't do anything about it anyway - you own the loan with the bank they were simply the middle man who has no say on what you do from here.
 

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Yeah, and when I called them just now they seemed genuinely uninterested in my complaint and made no attempt to make it right. When I got off the phone with them, I said "I hope your dealer enjoys the incentive at the expense of your customers experience"



I may just do that. I had intended on paying off a large chunk as soon as the first bill came in anyway, but now I may just pay the whole thing, instead. Problem is, it's much more difficult because my money is mostly in online accounts that I can't write a check from.
We use Orange money market account which you have old school checks for if you want. We simply drop market money into that account and cut checks for big ticket items that way. And if some cash sits in there you still get a tiny bit of interest on it LOL.
 

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I may just do that. I had intended on paying off a large chunk as soon as the first bill came in anyway, but now I may just pay the whole thing, instead. Problem is, it's much more difficult because my money is mostly in online accounts that I can't write a check from.
Be careful with this option and make sure to read the fine print about fees for paying off your car loan too early. Might still be worth it to pay the fees and get out rather than waiting and ending up paying more than you intend in interest (especially since your main complaint is inconvenient payment options).
 

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I've used Subaru/Chase Financing on all my Subarus that I own/or have owned, except the first one, that I have financed through local Credit Union. Going through "local banks" is simply an additional revenue for the selling dealer!
 

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Discussion Starter · #15 ·
Be careful with this option and make sure to read the fine print about fees for paying off your car loan too early. Might still be worth it to pay the fees and get out rather than waiting and ending up paying more than you intend in interest (especially since your main complaint is inconvenient payment options).
That one I made sure of ahead of time, because I intended to pay off a large chunk of it as soon as the first bill came in - no fees for an early payoff.
 

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Se7enLC
If you refer to Ing Direct Orange - 100% online bank - I have used this bank ever since they came to the US (from the Netherlands). As you know, they have been bought by Capital One and they will change the name starting February 2013 to Orange 360. That seems to be the best bank in the U.S. for several years now.... Ally Bank is breathing on their necks but cannot match their services.
 

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Se7enLC
If you refer to Ing Direct Orange - 100% online bank - I have used this bank ever since they came to the US (from the Netherlands). As you know, they have been bought by Capital One and they will change the name starting February 2013 to Orange 360. That seems to be the best bank in the U.S. for several years now.... Ally Bank is breathing on their necks but cannot match their services.
Yep
 

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Discussion Starter · #18 ·
You can still go and get financing through your choice and simply pay off the loan they set you up with. The dealer doesn't care given at this point they can't do anything about it anyway - you own the loan with the bank they were simply the middle man who has no say on what you do from here.
Well, "simply" is oversimplifying it. "New Car" is a very specific kind of loan that is a very low rate. The rate I got quoted for a new car, I cannot get with another bank now that I am no longer looking for a "New Car" loan - I am refinancing a loan, which is a much higher rate. I did look around for rates, and I'm not unhappy with the 1.9 that they gave me, but I guess this just goes to show that interest rate is not the whole picture. I wouldn't have been able to get a quote from subarufinancial without actually going through the dealer anyway. The only thing I could have done differently would have been to specifically ask for other bank options from the finance guy at the dealership. If I knew than what I know now!

So while I *can* still go through whatever financing I want, I missed out on the opportunity to get a "New Car" loan at a competitive rate from a decent bank. My options now are much more limited and all involve a much higher rate.

"Can't do anything about it" is not the same as "doesn't care". It's not good for a dealership to have a brand new customer unhappy with their experience when it's something they were fully in control of. Sure, they can't do much about it now, but they didn't even pretend to be interested in finding out what went wrong or apologize for not giving me all my options.

In the end it was my mistake for believing them when they surprised me with "Belmont Savings", but since the rate was agreeable and I didn't know there was an alternative, I didn't put up much of a fuss. I guess I should have!
 

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Having learned our lesson many years ago in a mortgage refinance, we will never take out a loan anyplace that doesn't service the loan themselves (i.e., they guarantee they will not sell the loan). That is rolling the dice, and if they come up snake eyes a constant and recurring hassle is the result. I would certainly never base a decision on where to take out a loan simply on the interest rate.
 

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Discussion Starter · #20 ·
Having learned our lesson many years ago in a mortgage refinance, we will never take out a loan anyplace that doesn't service the loan themselves (i.e., they guarantee they will not sell the loan). That is rolling the dice, and if they come up snake eyes a constant and recurring hassle is the result. I would certainly never base a decision on where to take out a loan simply on the interest rate.
I think my flexibility ended up being my downfall for this one. If I'd been overly concerned with the loan, I probably would have paid more attention to the process and nitpicked a lot more. Dealers LOVE to work with monthly payments, because it's easy to mask the total price for a car when you take trade-in, down-payments, and loan terms into account. Because I had the money to just pay outright if the loan wasn't favorable, I was able to keep the discussions on the total price of the car, rather than the financing. When it finally came down to the financing, I think they knew that it wasn't going to make or break the deal for me no matter what they offered. Why not take the incentives at that point, I guess. I should have cut them a deal and split the incentive with them :p.
 
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