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2019 Subaru Forester Premium, Crystal Black Silica, Pkg 15
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Discussion Starter #1
Hoping to see if anyone has experience with this. I have a current car payment for my wife’s car for about another year. I’m trying to avoid overlapping car payments.

Is it possible for the dealer where I plan to purchase my new car write me a check for the Guaranteed Trade In Value amount, and then finance the entire thing at the promotional rate (0% for 63 months...)?

In other words, instead of applying the trade in to my selling price, instead get a check and finance the whole thing like I had no trade?

Thanks.
 

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Not going to be up to the dealer. Going to be up to Chase bank.

I can't imagine getting 100%, 0% financing.
 

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2019 Subaru Forester Premium, Crystal Black Silica, Pkg 15
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Discussion Starter #3
Oh. On my last 2 Subaru purchases through Subaru Motors Finance I financed the entire balance with zero trade in. When we bought my 09 Legacy (for my wife), I sold my Civic to a cousin, and took my wife's Sentra because it was another year or two newer and I liked it better. When I bought my 11 Outback, I sold the Sentra to my sister. So both instances I financed 100%. I had the option of doing a down payment, but because the promo rate was so low, I just did the whole thing. I think it was like $940 for 36 months (!), but I did make more money or at least break even with the interest by investing in CD's/Money Markets, etc.

So, hopefully, we can do that again. The question was more if the dealership would actually cut me a check for the GTP rather than the financing itself. If the GTP value requires the balance to be placed towards the new financing offer, then I have a problem.


Can't seem to find SPECIFICS on the Subaru Motors Finance site about amount financed or ratio of selling price to financing. Maybe I will be able to do 100% again. I'll have to call the financier. I imagine I should include something in the Factory Order along the lines of "Deposit is refundable if 100% of the selling price cannot be financed" in addition to the "Deposit Refundable if trade-in no longer qualifies for GTP and customer cannot receive promotional 0% financing"
 

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2014 3.6R Limited
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Some thoughts.

I suspect Car Max is really paying the same price your dealer is for your trade in. If not I suspect Subaru Corporate is kicking in on the GTP. Why not go see what Car Max will pay for your Subaru? Car Max's prices on Outbacks were higher than what my dealer was pricing their comparable Outbacks at the time I bought mine.

PS Don't forget to consider the sales tax reduction on your new purchase if that applies in your state.
 

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2019 Subaru Forester Premium, Crystal Black Silica, Pkg 15
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Discussion Starter #6
Some thoughts.

I suspect Car Max is really paying the same price your dealer is for your trade in. If not I suspect Subaru Corporate is kicking in on the GTP. Why not go see what Car Max will pay for your Subaru? Car Max's prices on Outbacks were higher than what my dealer was pricing their comparable Outbacks at the time I bought mine.

PS Don't forget to consider the sales tax reduction on your new purchase if that applies in your state.
Yeah, I know I lose out on the tax difference, in NJ it's 6.625%, so that's about 662 dollars. But, for me, I like the flexibility of having no real "car payment" for the 16-17 months of my "overlap" so it's worth it for me. Better than leasing, and then buying it at the end of the lease with a used car APR%.

I'll consider CM, but I don't have any within 90 minutes from me. And in simplicity, nothing's easier than throwing the keys and title to the dealer when you pick up the new ride. There would be ... logistical ... problems getting my trade to a CM if I went that route, and then getting myself picked up. I don't really want to Uber from Philly back to NYC. :D
 

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2017 2.5i Premium Lapis Blue
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Not quite the same thing but I got a check for my trade from the dealer when I leased my Outback instead of using that amount to lower my lease payment. I don't think it would be any different for the dealer to do the same for a purchase.
 

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Some thoughts.

I suspect Car Max is really paying the same price your dealer is for your trade in. If not I suspect Subaru Corporate is kicking in on the GTP. Why not go see what Car Max will pay for your Subaru? Car Max's prices on Outbacks were higher than what my dealer was pricing their comparable Outbacks at the time I bought mine.

PS Don't forget to consider the sales tax reduction on your new purchase if that applies in your state.
I've had my '15 appraised multiple times the last several months. CarMax has routinely offered $1k more than Subaru GTP and multiple Cadillac dealers have offered $2k more.

Subaru's GTP seems to be more a convenience than anything else.
 

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2019 Subaru Forester Premium, Crystal Black Silica, Pkg 15
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Discussion Starter #9
I would agree with that; for me being nowhere near a CarMax, I think it's a reasonable and calculated expense. And it is very easy... Drive in with old car, keys, title. Drive out with new car. :)
 

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2019 2.5i Limited Forester (hers) (4th Subie), 2014 Impreza Premium (mine)(#5)
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I can't imagine getting 100%, 0% financing.
We see it all the time.

As for the OP question - if he's trading the car in, that would include paying his old one off in full, with whatever is still owed on it being rolled back into the new loan. Not a big deal. So for purposes of calculations, let's say he's buying a $30,000 car, his trade is valued at $10,000, and he still owes $5,000 on it. What he'd end up financing is $30 - $10 + $5, or $25,000. I've had people come in, trade in their high interest rate cars that they were upside down in, and with the refinance at the lower rate, still maintain or even lower their car payment.
 

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Discussion Starter #11
I can't imagine getting 100%, 0% financing.
We see it all the time.

As for the OP question - if he's trading the car in, that would include paying his old one off in full, with whatever is still owed on it being rolled back into the new loan. Not a big deal. So for purposes of calculations, let's say he's buying a $30,000 car, his trade is valued at $10,000, and he still owes $5,000 on it. What he'd end up financing is $30 - $10 + $5, or $25,000. I've had people come in, trade in their high interest rate cars that they were upside down in, and with the refinance at the lower rate, still maintain or even lower their car payment.
Thanks Carl.

I owe nothing on the car so it looks like I will be able to offset my payments for about 17 months at the expense of about 650 more in taxes at the sale.

That’s fine with me. I’m all about the flexibility of the payments right now.

My salesman was on his weekend and called me a short time ago. He confirmed above and is putting a stipulation in my factory order that my deposit is refundable if I cannot qualify for the promotional 0% for 63 months that is currently offered as well as the ability to finance 100% of the price.

Hooray! Looks like I’m getting my Legacy 3.6 :) :) :)
 
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