[Val]

Hi everyone! New to the forum and i'm hoping to be new to subaru's soon lol. i'm not the biggest car buff but i absolutely fell in love with the new STi. I guess i was sorta looking for advice in this aspect. I just graduated and my parents are willing to put 10k down payment on the new car and i pay for the rest monthly. Would it be smarter to get a bank loan? any advice would be appreciated btw i'm job hunting right now lol. but i was hoping to get the car once i have a stable job. Thanks in advance

[B_K]

Welcome. I'm new too. This is a fun forum.

[slyguySTI]

id say do what you can afford, i would def wait for a stable job first, then go get the STI... you wont regret it..

[BMGofUSMC]

Before you jump on the dealerships financing, ask em to give you a no s**t estimate of your monthly payments and intrest rate. Just tell them you want to know exactly what you will be paying each month, and how much the total intrest will add up to by the time your done paying for the car.

Dont sign anything without reading it completly first. Dont let em talk you into doin anything you have reservations about without consulting with someone you know/trust first.

Then ask your bank to do the same with the same set up (i.e. how many months you set the loan to be, etc). Depending on the bank, you've got a good chance of the interest rate being pretty good cause its a new car However they may see you as increased risk due to your age/lack of credit (i'm guessing you have no credit since you just graduated) and it may be a little higher, unless your parents co-sign for the loan. If you can avoid it, do it on your own, it will be a great start for your credit. These are the things (amongst others) that you should find out before signing into a financial agreement. Since your parents are willing to drop 10K as a down payment, I'm willing to bet your family is pretty financially stabel . Which tells me that your parents are probably a good library of information when it comes to this sort of thing. Pick their brains. To them it will just seem like you wanting to be more responsible and thats never a bad thing.

hope i dont seem like im rambling , but some of this stuff i wish I would have known when i bought my first car. Hope this helps.

[boxtwo]

+100 on the above advice. Get yourself some stability first, then look at the STi. That way you are not working solely to pay for your car.

As far as financing goes, you'll have to shop around. See what rate the dealership will give and compare that to what a bank will give. With the deals in finance right now, there's no telling which will be better.

Good luck in the job and the STi!

[skubv8]

Welcome

[rmo55c]

Originally Posted by BMGofUSMC

Before you jump on the dealerships financing, ask em to give you a no s**t estimate of your monthly payments and intrest rate. Just tell them you want to know exactly what you will be paying each month, and how much the total intrest will add up to by the time your done paying for the car.

Dont sign anything without reading it completly first. Dont let em talk you into doin anything you have reservations about without consulting with someone you know/trust first.

Then ask your bank to do the same with the same set up (i.e. how many months you set the loan to be, etc). Depending on the bank, you've got a good chance of the interest rate being pretty good cause its a new car However they may see you as increased risk due to your age/lack of credit (i'm guessing you have no credit since you just graduated) and it may be a little higher, unless your parents co-sign for the loan. If you can avoid it, do it on your own, it will be a great start for your credit. These are the things (amongst others) that you should find out before signing into a financial agreement. Since your parents are willing to drop 10K as a down payment, I'm willing to bet your family is pretty financially stabel . Which tells me that your parents are probably a good library of information when it comes to this sort of thing. Pick their brains. To them it will just seem like you wanting to be more responsible and thats never a bad thing.

hope i dont seem like im rambling , but some of this stuff i wish I would have known when i bought my first car. Hope this helps.

Excellent advice. Once you get a dealer quote with interest/payments/etc, you want to go to your bank and do the same. I ended up financing through my credit union on two prior cars b/c they were able to offer me a much better interest rate. Also definitely wait until the job is stable and you've gotten a few paychecks. The STi will hit you in the wallet not only from the payment but also possibly the insurance depending on your situation.

[Chaz2.5]

Not much more to say on the purchasing end. Everything that was said was excellent advice and highly encourage you to follow through. To put things in perspective for ya.... if you can get your new STi for say $36K with that down payment you will be financing roughly $26K (not playing the sale tax game here though). With a 4.9% over 60 months you'll be looking at around the $500 mark for monthly payments. You can more than likely find a better interest rate through a bank or credit union. I believe financing through Chase though you can get a 3.9% for 60 months with is pretty damn decent IMO.

Now the insurance part, with age and lack of experience (not saying you are a bad driver) but the insurance rates will be through the roof. However if you play it smart you can get a lower rate if you are still insured through your parents..... have one of your parents be named as primary operator of the STi and you be placed as the primary on one of their vehicles. That way the insurance won't nearly be as high. It helped alot when i had my eclipse doing it that way. Saved about $200 a month in insurance payments by having my dad named as primary.

Just remember the STi is alot of car with that horsepower. Be safe on the road and don't do anything stupid. You hear all the horror stories about teenage drivers getting into accidents showing off.

Good luck with the purchase if you decide to go through with it!

Edit: N/M the insurance part, just saw that you are from the great state of (no sales tax) Oregon! Where abouts exactly???

[BMGofUSMC]

Glad my advice is valid enough in everyones eyes I just know i went thru serious problems when i refinanced my car thru my bank because Hyundai financial messed up the payoff ammount and screwed me out of two payments. Making my credit really bad, til i disputed it thru equafax. All good now. But they had me on a 17% interest rate (hence the refinance..)

I financed thru Navy Federal Credit union on that car (dropped that 17 down to 4.9%. Not too shabby).

The STI i'm now financing thru Bank of America (its who the dealership uses) and they gave me a pretty good interest rate for a used car (7%). I'll stick with them for at least 6 months to add to my credit repetoir and then refinance to Navy Fed again for an even better interest rate.

[subiejim]

Welcome!! I am new as well. All the guys here have given you great advice on the purchase process. Just do your homework first and you will be fine. Think positive!!!

[Val]

Thanks alot everyone! I guess i'll have to be patient and wait a bit. I'm not one of those crazy drivers so i think i'll be ok lol. Thanks.

[bulletsREVENGE]

i would say no on bank oan only because interests are frekin high, but i got mine with like 2k down and no registered job....im not a drug dealer lol, then again mine is 04

[Val]

If not the new STi, i was thinking of getting an older model. The 05 looks sick. Idk the differences between the STi's but i would love to learn so i can make a decision.

[calves]

yay new guy!!

if you get an older car, you can't qualify for the special financing deals that are usually on for new cars. i got a 3.9% APR deal for the 08 sti, which was freaking sweet. thanks Chase Bank!

[Szumita]

welcome!!!!!!!!!!