Subaru Outback Forums banner

1 - 20 of 26 Posts

·
Registered
Joined
·
3 Posts
Discussion Starter #1
I just bought new Subaru Outback. They gave me 2.94% financing. I checked before my score and it was 711 but they said it's 694 and they cannot give me 0%. Then at the finance office they said if I buy 7 years extended warranty for $1700 they will change my financing for 0%. Is it good deal, or maybe they are scamming me?
 

·
Registered
2015 Jeep Grand Cherokee, 2011 WRX, 2015 Legacy 3.6r loaded and a 2016 Camaro 2SS.
Joined
·
124 Posts
I just bought new Subaru Outback. They gave me 2.94% financing. I checked before my score and it was 711 but they said it's 694 and they cannot give me 0%. Then at the finance office they said if I buy 7 years extended warranty for $1700 they will change my financing for 0%. Is it good deal, or maybe they are scamming me?
If its 7years/100k, then its not really a bad deal. Just make sure its thru Subaru and not a 3rd party.
 

·
Registered
2018 Outback 3.6r
Joined
·
18 Posts
You are getting scammed - Chase does not factor add ons into the approval decision for 0%. Tell them you want 0% or you are out the door to the VW dealer.

I would put the $1700 in a index fund and in 2.5 years make a decision to either buy the same warrantee if the car had issues or just self insure it with the profit you made in the past 2.5 years if it has been reliable. Since the summer the only widespread issue we have seen with the 2018 is the head unit and battery which are not covered but the extended warrantee anyway.

In some states what they did to you is actually illegal.
 

·
Registered
'14 Subi OBW, '18 Subi Forester
Joined
·
1,806 Posts
Remember that there are 3 main credit reporting agencies, and your score can easily vary by 20 points. You might want to ask which one they are referencing.
 

·
Registered
Joined
·
22,836 Posts
So first red flag. The dealer who is a 3rd party reseller is combining two completely different items not even remotley connected except that the $1700 warranty is about $800 over priced. Dealer is making $1000 on the $1700 warranty easy. For doing absolutely nothing.

The financing via the dealer no doubt the dealer is taking a % kick back off the top. So yes there is plenty of meat left to wheel and deal. Put on your sh-t kicking boots and be ready to walk. The terms will improve. $1100 is ok for that warranty not $1700.
 

·
Registered
Joined
·
22,836 Posts
If you really want to pull the dealers shorts down. Get financing your self ie cut them out of that, then tell them you’ll buy the Subaru Gold warranty later via mailer from Subaru. You just took $2000 right out of his shorts and your negotiated car price is still what it is. If the dealer walks away from an agreed price because you denied him fleecing funds then the dealers days are numbered.
 

·
Registered
Joined
·
60 Posts
the consumer credit score you see is not the same as the scores lenders use .there are 55 different fico scores , all custom tailored for specific industries . your dealers score is the correct score for the auto industry use . your consumer score is an average of all the other scores .

in fact the free ones from discover-citi and amex are not even comprehensive fico scores .they are fico 8 bank card scores and do not weigh much else but credit cards . citi's score is calibrated to 900 not 850 . amex and discover do not state the calibration they use on fico 8

I just paid 1080.00 for 7 years 100k miles 100 deductible from luke at Stamford Subaru . I learned about luke through this forum .
 

·
Registered
Joined
·
6,093 Posts
I just bought new Subaru Outback. They gave me 2.94% financing. I checked before my score and it was 711 but they said it's 694 and they cannot give me 0%. Then at the finance office they said if I buy 7 years extended warranty for $1700 they will change my financing for 0%. Is it good deal, or maybe they are scamming me?
I don't think you are getting scammed at all. Dealer is trying to help you, even though they do make some profit on the warranty.

When my wife bought her '17 Forester, Subaru was looking for a credit score of either 720 or 740 and higher to qualify for 0%. No problem for us but some are not quite there.

Another way to reduce the rate is to increase your down payment. I suspect the dealer is offering you the warranty at list and will push part of the profit toward your down payment in order to get you 0% financing.

I don't see any problems with your deal. So did you take the warranty and get the 0% financing?
 

·
Registered
2016 Outback 3.6R Ltd. w. Eyesight
Joined
·
204 Posts
Extended warranties aren't per se good OR bad, they're simply a gamble, and wouldn't even be sold if they weren't such a money maker for the "house" (who of course also sets the rules, i.e. what's covered). While any given buyer may make out OK (a few winners may chime in here), overall, any given buyer's chances of losing money on the deal is greater.
 

·
Registered
Joined
·
22,836 Posts
Havent bought extended warranties on Subarus. Going on three cars all three combined have had zero warranty type work between 36,000 and 100,000.
 

·
Registered
2017 OB Limited 3.6
Joined
·
114 Posts
"I just bought new Subaru Outback. They gave me 2.94% financing. I checked before my score and it was 711 but they said it's 694 and they cannot give me 0%. Then at the finance office they said if I buy 7 years extended warranty for $1700 they will change my financing for 0%. Is it good deal, or maybe they are scamming me?"

Wonder what SOA would say if they saw this written on one of their after sales surveys?
 

·
Registered
2013 3.6R Limited
Joined
·
919 Posts
For more than 30 years, my "extended warranty" on ALL of our vehicles has been a rolling $2,500 to $3,000 kept in a money market fund used exclusively for auto maintenance and repairs that I perform myself. If I spend $200 fixing something on any of our four current vehicles, I immediately deposit another $200 into the account. I have always come out much further ahead with this plan compared to tossing thousands of dollars away on a purchased extended warranty that rarely pays for itself and winds up fattening the dealership's bank account.
 

·
Registered
2018 Outback 2.5i Limited Eyesight - Remote Start - Auto Dimming In/Outside Mirrors
Joined
·
247 Posts
My story ...

Went to my home bank X ... they said I was pre-approved for 3.49%.

Went to Subaru they said they have bank Y and they can do 3.24%.

Sure why not ... went with bank Y.

My home bank X calls a few weeks later and asks what happened. Told them the story and went with bank Y at the dealership. Bank X then says well to get your business back, would you come back if we give you 1.99%.

I am back at my bank X ;)


I will add though that the "we will give you 0% for more money" does sound odd. If they could not approve your for $X ... how can they now approve you now for $X++?
 

·
Registered
'14 Subi OBW, '18 Subi Forester
Joined
·
1,806 Posts
I happen to like extended warranties, but I seem to have particularly bad luck - especially with the past few Toyota's we've purchased. If you don't mind shopping out of state / internet sales on these warranties, they can be had pretty cheap. For instance, the 8 year / 125k mile Zero deductible plan on a Toyota Sienna can be had for around $1400, no sales tax. $1200 will get you a 7y/100k/$0 plan on a Subaru or Honda.

The payback? Over $8k on our 2008 Sienna LE (engine teardown, several electronics issues). So far, approaching $5k on our 2015 Sienna Limited Premium (power retracting side mirrors, Nav radio head, failed front struts, interior lights logic,). The old Subaru was AF sensors and head gaskets and an oil pump (big bucks...), the new Subaru so far has only been a failed starter and some little things (hasn't broken even yet). The old Honda was power doors, transmission & neutral safety switch. The new Honda hasn't yet paid off a penny.

To me, a HUGE issue is the rental provision, as we live 20 miles from practically anything....
 
  • Like
Reactions: Lucky-JJ

·
Registered
2017 2.5i Premium Lapis Blue
Joined
·
4,301 Posts
Extended warranties are always a bad idea--unless you need to make a claim.
Just like collision coverage on your insurance. Most people never need it, but not having it would be a huge hit with a major accident.

It's all about peace of mind. I didn't buy the extended warranty when I bought my 2010 Ford Escape. I might have kept it longer if I had the extended warranty. I had one repair done just before the 3-year warranty ran out. The seal between the transmission and the power transfer unit (transfer case) failed and transmission fluid was leaking into the PTU which then became overfilled and was leaking out of the axle seals. Repairs were done and all was well until last year when I started seeing a leak from the axle seals again. It might have just been the $2 seal this time but it also may have meant a big disassembly and repair bill this time. I didn't wait around to find out. I traded it in on the Outback.

That wasn't the only issue with the Escape but it was the thing that pushed it over the edge for me. I wasn't confident that it wasn't going to start costing me a lot of money. Having an extended warranty might have kept me from stressing about it.

This time around I completely avoid the warranty and the stress because I leased my '17 Outback. On paper it doesn't make the top of the list of good financial decisions, but the peace of mind it buys me is priceless. I have no idea if I will lease next time around or not, but just short of one year in I'm still feeling good about the decision.
 

·
Registered
Joined
·
3 Posts
Discussion Starter #17
Thank you all !

I will contact Chase bank directly to ask about my loan details. I did not take the extended warranty. I'm planning to pay my car off in 30 months, so I will pay less anyway. I think I should be good for next 3 years and after that I will think about extended warranty. Thanks for your replies.

BTW I love this car !
 

·
Registered
Joined
·
45 Posts
I am not sure how you are looking at your credit score but if using Credit Karma they use the newer Vanguard scoring system but most banks still use the FICO scoring system. There can be a difference in the Vanguard vs FICO score. This could be your issue for the scoring difference.
 

·
Premium Member
'16 Outback 2.5i Limited - Eyesight
Joined
·
83 Posts
I just paid 1080.00 for 7 years 100k miles 100 deductible from luke at Stamford Subaru . I learned about luke through this forum .
That's close to what I paid ($1000) for the 7 year/zero deductible from Joseph Subaru in Florence
 

·
Registered
Joined
·
22,836 Posts
$1000-$1100 for 7-100,000 is very fair. Dealer is making around $200 for 5 min of paperwork.

Warranty is just a form of insurance. The more complex / higher price tag the vehicle the higher the the cost etc. So a fairly low tech 2.5 Limited with a invoice around 29k

Vs say a very complex Plugin Hybrid, vented/ cooled seats, costly / complicated electrical system. $35,500 invoice I paid $1300 for a 6yr 125,000 gold coverage warranty. By the way the first nance guy tried to sell me a 5yr 100k For $3200! Then lowered it to $2900! I simply said no thanks went on the Ford website found the Plugin Fusion forum and everyone was buying from a PA located Ford dealer who had all the pricing listed on their website. Online form 5 min $1300 for a better warranty. Lol

So even at $1000 for the typical 2.5 Limited the dealers are easily banking $200 on these warranties.
 
1 - 20 of 26 Posts
Top